After a difficult trading year that has seen losses for CCT and the sp nose-dive to 25p at one point the solution to return to profits may come from the launch of electronic Sudoku games in time for Christmas. Character will launch two Carol Vorderman Sudoku products. For Sudoku fans on the move, there are two handy travel size products: a hand-held LCD game (19.99) with over 750 grids, and a touch screen version (29.99), with over 100,000 permutations of the game. A plug and play version, allowing addicts to play Sudoku on their home TV (29.99) will follow later this year. It won't take many sales to rack up good profits if these are anywhere near as addictive as the puzzle books have proved to be so far.
500,000 sold at guess 5 profit per item would rack up 2.5m, with less than 53m shares that is a healthy EPS of 4p on one item alone and my estimate is probably conservative? They also have licensing rights to Dr Who, Little Britain and Batman amongst others.
Also 70% of these shares are in the hands of Directors, Pension Trusts and Funds and as has been seen in recent weeks, moderate buying has pushed up the share price. It has all the hallmarks of a possible recovery stock as was IDS which I tipped last year at 81p and is now 382p. Not saying this will reach those heights but if Sudoku sells well this Christmas expect CCT to show a good start to their financial year. 2005 figures ending August 31st will not be good but we don't buy shares on the past, there is no gearing and 8m of shareholders funds available.
Take a look. The profits could be more pleasing than solving the puzzles.

Sat's F.T:
QUOTE:
Character Group, which makes and distributes toys such as Robosapiens(above), dolls based on well known Characters such as those from Little Britain and electronic Sudoku, jumped 12.7% TO 75.5P on Wed after confirming that it had received more than one take over approach. The company said that the approaches were at a 'preliminary' stage and that the value of any possible offer was still 'unclear'. The group has done particularly well over the past year out of its series of talking dolls, key chains and mugs based on the Little Britain series"

Minimum 1.00, would be upset if less than 2.00. A sure winner

Agreed peadar10, might be worth adding a few more, still plenty of shares to be snapped up by anyone trying a take-over. Size of some trades certainly suggests its on the cards. This will really take-off when a bidder becomes clear, RNS statements needed for every 520k shares under LSE rules. Might get one this week?

andy
Heres hoping the sp is struggling on non punters awareness.

Driver, until a formal bid is announced I think the sp won't rise too far on speculation until solid results can also be confirmed. I have two sp targets, one based on results due in April and one based upon bids for the company. We have to be patient as its only this time last year that CCT nose-dived and there may be wary investors wanting proof of the pudding, thats why I like these stocks, get in and take a risk before it becomes noticed on more radars and you make more dosh.
Take a look at LDC, appear to on my own but 20% up in <1 month.

Andy
If you like China its now time to get on board PCM they hope to be into profit by the end of 2006 they are seeking finance to launch Sit Up TV or as we know it Bid Up TV the shares are .0012 most of us on it are share millionaires, could be a multi bagger.
Are you still on ASM?

Not currently in ASM, took my money out and put it into MMG which should rise rapidly over next month just like this time last year. It is high beta, originally bought at 60-70p and sold out at 185p and 270p as over-valued and it fell back along way. Bought MMG again at 122p after funds raised at 135p and now 175p.
Will probably take profits again and will re-invest in ASM.

The new all walking Dalek from CCT.

5 Million shares exchanged between Mittel and Valtidone at 78.5,

http://www.moneyam.com/InvestorsRoom/posts.php?tid=9625#lastread

This seems to have disappeared off the board recently for some reason? Results due soon and should be good also maybe news will come out soon about possible takeover.Plenty of cash in the coffers due to sale of digital camera division ,so possible share buyback or increase in dividend ,anyway plenty of good news options currently in pipeline for the near future.

Agreed DB66, should be a very interesting 4-6 weeks!!

Results due next Thursday, maybe there will also be an update on bid approaches??
If results as I expect then sp is justfied and in fact well undervalued even without a takeover bid which would need approval of Directors as they own a large percentage of the company.

Hi andy I'm still hanging in here.

An excellent set of results.

Dividend 1.65 pence, up from 1.1 pence (an increase of 50%)
Cash in Bank 10.3 million, up from 3.9 million (an increase of 164%)

Pre-tax profit of 2.96m in the first half from a 1.93m loss a year earlier.

'The Board is delighted with the progress made by the remaining core business and, providing we see no further erosion in economic confidence generally and,in particular, in the retail sector, we see no reason why the Group's excellent recent progress will not be maintained.'

Yes, very good results. Full year EPS potential of 10p puts on forward PE of 6.5.
This is way too low. Suggest early drop was due to takeover talks being terminated but this share is worth over a quid on fundamentals alone and must surely rate as a BUY now that continued excellent results have been confirmed.

Amazed !!
The market will wake up to these in the comming months i`m sure.
This company has really turned the corner and from their statement they seem very confident about future growth.
I really hope they do agree to a possible 25% share buy back and then we surely will be laughing all the bank!

I think its worth a read at least.


Interim Results

RNS Number:0739C
Character Group PLC
27 April 2006


Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Thursday, 27 April 2006
Embargoed: 7.00am
The Character Group plc
Interim Results for the six months ended 28 February 2006

Highlights

Continuing business (Toys, Games and Gifts)
6 months to 6 months to
28 February 2006 28 February 2005
#m #m

Turnover 40.7 27.2 +50%
Operating profit 3.7 (1.0)
Earnings per share 5.69p (2.45p)

Dividend
1.65 pence, up from 1.1 pence (an increase of 50%)

Group results (including discontinued operation)

6 months to 6 months to
28 February 2006 28 February 2005
#m #m

Turnover 66.6 43.4 +53%
Operating profit 1.1 (1.5)
Profit before tax 3.0 (1.9)
Earnings per share 5.04p (3.8p)

Cash at bank
#10.3 million, up from #3.9 million (an increase of 164%)

Approaches regarding possible offers terminated

"During the first six months of the current financial year the Group underwent a
major reorganisation with the disposal of its Digital Business in February 2006.

"The structure of the Group is now designed to maximise the strength of, and
focus on, the core business of Toys, Games and Gifts.

"The Board is delighted with the progress made by the remaining core business
and, providing we see no further erosion in economic confidence generally and,
in particular, in the retail sector, we see no reason why the Group's excellent
recent progress will not be maintained."
Richard King, Chairman

Apparently a BUY recommendation in the Independent.

andy
Cheers ;-)

Buy recommendation from the Independent on 28/4/06

Character Group

Our view: Buy

Share price: 66.5p (-4p)

January's decision to ditch the digital photography arm of the business looks to have been a shrewd move by Character Group, allowing the company to concentrate on its core games and toys licensing division.

Although the proceeds, 10.3m, were disappointing, the sale helped the group return to operating profitability to the tune of 3.7m.
It registered a loss of 1m in the corresponding period of 2004. Turnover rose by nearly 50 per cent to 40.7m, stripping out revenues from the digital arm, thanks to a year which saw the group gain the No 1 and No 2 products in the UK toy market. They are the Dalek from Dr Who and Roboraptor, an electronic dinosaur model.

Looking ahead to the second half of 2006, the company has licensing agreements in place for games linked to two potentially blockbuster films: Superman Returns and Pirates of the Caribbean 2.

The group is also poised to launch Roboreptile, a successor to the Roboraptor, along with more Sudoku games endorsed by Carol Vorderman and exclusive products featuring Peppa Pig, a very popular children's pre-school character.

Character shares trade on an undemanding earnings multiple with the potential for a substantial re-rating should Superman and Pirates do well in cinemas. A 50 per cent rise in the first-half dividend should be followed by the same in the second half, giving the shares a prospective 4.5 per cent yield, impressive for a small company.

Given the ongoing consolidation in the children's entertainment industry, there is always a chance that a suitor will swallow the newly refocused Character Group. But even without a bid its shares are worth buying.