Character on track despite weak sales

Toys and games company Character Group said, despite weak sales to date, it still expects to meet current market expectations for the financial year ending 31 August 2012.

"We believe that the group's key brands have held up well with no substantial casualties," it said in a company statement.

Faced with weak sales of Peppa Pig and other TV tie in toys, Character reduced stock levels and reduced costs in the first part of the financial year.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Looking ahead Character said, despite adverse economic conditions, it believes its key brands will continue to do well through the year and that some new products are expected to boost sales and could, "create a new toy category suited to the technological age."

Even so, Character conceded that it is more difficult than normal to forecast in uncertain economic conditions and highlighted possible disruption to trade heading up to both the Diamond Jubilee and the Olympics.

cj