Character Group Suffers from Woolworth Closure

U.K. toymaker The Character Group has reported sales down 22 percent to £37.8 million ($55.8 million) and a loss before tax of £3.84 million ($5.67 million) for the six months to Feb. 28. The loss includes £1.06 million ($1.57 million) of bad debt due to Woolworth going into administration.

Like-for-like sales over the Christmas trading period were 35 percent down on the same period in 2007, and margins were affected as a result of having to sell stock that had already been ordered by Woolworth. Trading in January and February had improved.

"The group has had its share of difficulties which, as anticipated, resulted in a trading loss for the first half of this financial year," says Richard King, chairman. "However, I am pleased to note that, despite the unprecedented economic turmoil, the group is beginning to benefit from its cost control program and new product ranges coming on stream, both of which provide an improved trading platform. Overall, we have renewed confidence for the medium term even though the outlook will remain challenging."