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Profits Puzzle Solved for Character Group? (CCT)     

andysmith - 22 Aug 2005 21:37

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.

cynic - 11 Jan 2007 12:52 - 215 of 263

has a date for trading update been announced?

driver - 17 Jan 2007 08:03 - 216 of 263

haracter Group says four-month sales to end-Dec up 35 pct on last year
AFX


LONDON (AFX) - Character Group PLC, which designs, develops and distributes toys, games and gifts, said sales from continuing operations for the first four months to Dec 31 were up 35 pct on last year.

In a trading update, the company said it has received a 'strong' response to its 2007 Christmas product range, which would lead to further growth throughout the year.

Given its Christmas 2006 sales and the positive reaction to its current product portfolio, chairman Richard King said the company remains on target to maintain its growth throughout 2007.


http://moneyam.uk-wire.com/cgi-bin/articles/200701170700256252P.html

cynic - 17 Jan 2007 14:29 - 217 of 263

the good news is now out, so have taken a sweet little profit, which was always my aim ...... dare say a good term hold, as momentum currently behind it and golden cross possibly just formed

driver - 17 Jan 2007 15:00 - 218 of 263

cynic
A bit slow but looking at 200p+

cynic - 17 Jan 2007 15:20 - 219 of 263

not saying you are wrong ..... no a sector i really follow and took this position solely as a trade over the Christmas period ..... nowt wrong in taking profit!

will have another look at CSR when I get a mo ..... in SF at the moment, but will try to within next hour

fido - 18 Jan 2007 08:07 - 220 of 263

Character Group
Share price: 126p +0.5p
Questor says Buy

The return of Dr Who to our television screens in 2005 did not just resurrect the career of Billie Piper - it also helped toymaker Character Group return to a healthy profit. The company makes toys and games under licence, to tie in with television programmes such as Dr Who, Scooby Doo and Little Britain. It is also the company behind the popular Robosapien robot.

In the first half of 2005 the company was making a loss but thanks to a strong product line-up - due at least in part to the popularity of Dr Who and Little Britain - it returned to profit at the end of that year and it has remained in the black ever since.

Character has also sold its digital division, which produces Polaroid cameras - no longer a must-have item due to the advent of digital cameras. It is now focused on toys and games and has been developing more of its own products alongside those it produces under licence. It is also expected to unveil a new line of girls' dolls - described as somewhere between Bratz and Barbie - at the next week's Toy Show in London.

Character Group said yesterday that sales from its continuing operations rose 35pc in the four months to December 31 and analysts believe the future pipeline of products is strong. The company also plans to continue its share buyback which will improve earnings per share.

The Aim-listed company's share price has more than doubled over the past year and Questor tipped the stock at 71p last August. It now trades at 10.5 times forecast 2008 earnings - a considerable discount to closest quoted rival Hornby - with a prospective yield of 3.2pc.

Even if you're not a fan of the revived Doctor Who, it will be a while before this lucrative revenue line is exterminated and, even then, Character Group has a good portfolio of toys and games which should help growth to continue.

james.quinn@telegraph.co.uk

Peadar10 - 31 Jan 2007 21:59 - 221 of 263

Great news today. 150p should be reached in the near future.

lex1000 - 31 Jan 2007 23:37 - 222 of 263

lex1000 - 31 Jan 2007 23:36 - 11 of 11
31/01/07 - 14:59 Sale of Treasury Shares RNS
31/01/07 - 09:20 Character Group sees current year exceed market AFX
31/01/07 - 07:00 Trading Update RNS

The news gets better & better.Good year of growth,increasing dividends,profit upgrades and chart breakouts continue.

Bullish chart confirmed chart breakout should take sp to 150p.Charles Stanley upgraded from 145p to 160p.Strong buy methinks now another Institution on Board @ bargain price.Hence explanable reason sp held back.aimvho,dyor

AndyH78 - 01 Feb 2007 09:51 - 223 of 263

Don't forget the share buys backs, increasing the EPS regardless of increasing profits!

s040371giles - 10 Feb 2007 09:40 - 224 of 263

Big write up in SCSW today - "...even these (updated) forecasts are likely to emerge as too low. Buy"

cynic - 10 Feb 2007 10:01 - 225 of 263

chart on post 183 shows the strong upward momentum (trend!!) with 25 dma rising sharply (currently about 135) which should lend solid support should sp fall back.

as a general comment, please take note that all indices are currently looking pretty toppy, other than DOW ..... however, even DOW is starting to look a little tired and in need of a rest - i.e. temporary retrenchment, perhaps back to 12460

andysmith - 10 Feb 2007 12:02 - 226 of 263

Sold 35% of mine to bank some nice profit for another investment.
My remaining shares for me are effectively free now and will sit there collecting my dividends and waiting for the onward push in sp after the interims in April.
If there is the continued growth then I fully expect than CCT could be taken private but not for anything less than 2. Amazing turn-around in two years.

fido - 10 Feb 2007 22:22 - 227 of 263

Wave goodbye to 2 as we pass!

http://boards.fool.co.uk/Message.asp?mid=10402960

lex1000 - 11 Feb 2007 23:31 - 228 of 263

Sharewatch - SWSC Repeated Buy Recommendation in saturday 10th newsletter. Charatcter included in Nap 2007 growth share.Watch CCT monday onwards.......


CockneyRebel - 10 Feb'07 - 16:15 - 2955 of 2976


It's excellent, as suggested here last week, one of their two main buy tips. Now that's it, no more, just wet yourself on Monday :-)

PaulyPilot has done an intersting write up on CCT today too on TMF that you might find interesting:

studhaves - 10 Feb'07 - 16:25 - 2957 of 2976


Nice write up on TMF boards too, cheers CR. I must say my own feeling is that these should be over 2-00 in a relatively short time. My own target was 2-29 from some calcs some time ago, looks like it needs revising.

http://boards.fool.co.uk/Message.asp?mid=10402960



studhaves - 10 Feb'07 - 21:12 - 2966 of 2976


I don't usually follow tipsheets, & anything I see touted around I always do my own research on, but the way I view it is kind of as an insurance policy -
if I only use it as kind of sentiment indicator for CCT to see what the herds likely to be up to it's well worth the money, & if I pick up one half decent tip from it it'll more than pay for itself a few times over :)

studhaves - 10 Feb'07 - 21:13 - 2967 of 2976


PS Elm,
I think the SP will tick up a good few points on Monday :)


I'd expected as much which is why I upped my spreadbet by another 125 last week :)

CockneyRebel - 11 Feb'07 - 11:54 - 2968 of 2976


I think north of 14p eps will be achieved this year. On the basics they did 5.69p epd in H1 last year. Add 20% to the eps for the reduced shares (it should actually be a bit more) and you have 6.83p. Sales are up 35% and margins at the same levels (I think they will increase a tad myself) and H1 eps would be 9.22p. If H2 was just the same as last year they would do 3.4p with the reduced shares. So the 12.7p eps forecast factors in no growth in H2 and the whole of the estimates factor in no margin increase.

Add in 35% sales growth in H2 maintained and you have 13.8p eps this year.

If they have increased margins it could be 15p eps+ for this year.

So the earnings growth looks like 60%+ and the PE for the current year is just 10 maximum. Growth may actually be a fair bit stronger and the PE lower if best estimates are met.

fwd PE for the year ahead will get focussed upon from the interims which is likely to be 8 or less imo. H1 ends Feb 28 so there could be an H1 trading statement in the next few weeks or then on.

17p eps next year looks well likely and a fwd PE of 12 looks modest for this gowth. Come the interims in May I bet these could easily be 170p+ with 200p a possibility imo.

CR


studhaves - 11 Feb'07 - 12:46 - 2969 of 2976


Thanks CR,
Its nice to see such low PE's still even after the recent increases - lots more room for further increases :)

fido - 11 Feb'07 - 13:17 - 2970 of 2976


It is worth noting that all these impressive earnings upgrades are coming from what is just the start of Characters potential. Dr Who was the starting point of the turnaround. This has now been followed by the Sarah Jane adventures. People talk of the risks that the BBC will not continue making Dr Who. I would argue the very opposite. Through Dr Who, the BBC has discoved a moneymaking opportunity. There is no way that having discovered this income stream that the BBC are not going to capitalise on it, so far from discontinuing Dr Who the BBC will be looking at ways of making it even more profitable. This will mean more spin offs like the Sara Jane adventures and more licences for Character.
Likewise I fully expect to see Character partnering 3i in its exploitation of its Chlorion licences.
People speak of risks. Character are underpinned by strong growth. What is not factured in is the future potential of more licences and more partnerships.
The risk is in my opinion not so much in being in, its being out at a time when growth prospects look superb.

lex1000 - 12 Feb 2007 07:47 - 229 of 263

Looking very strong pre-open.Heading 170p-200p by year end if not before.

lex1000 - 12 Feb 2007 09:21 - 230 of 263

What more do you want? Quality growth share for rest of 2007 and 2008.Pays a dividend twice yearly too.

lex1000 - 12 Feb 2007 12:58 - 231 of 263

Over 500k traded,high volumes for CCT.Holding rise thus far.Resistance at 150p,however,if get follow through momemtum buying over this week who knows.Charater highlighted as growth share 2007 and therefore on more & more peeps radar.News a few few weeks onwards,profit ipgrades should see CCT ,moving higher over coming weeks and months.Strong hold.

lex1000 - 13 Feb 2007 09:46 - 232 of 263

RNS Number:1553R
Character Group PLC
13 February 2007


Issued on behalf of The Character Group plc by Citigate Dewe Rogerson

Date: Tuesday 13 February 2007
Immediate Release

The Character Group plc

Pan-European Master Toy Contract signed
by Character Group and BKN for
DORK HUNTERS FROM OUTER SPACE

The Character Group ("Character" or "the Company or Group") announces that it
has signed a pan-European master toy contract with BKN New Media Ltd, a wholly
owned subsidiary of BKN International AG ("BKN") relating to the animated action
comedy series, DORK HUNTERS FROM OUTER SPACE.

At this stage, the license will cover all standard "master toy" products, such
as basic plush; feature plush; action figures; toy vehicles and accessories;
play-sets; activity, arts & crafts; interactive toys; board-games; toy writing
and school instruments; toy accessories including lipstick and make-up.

Commenting on the deal, Jon Diver, Joint Managing Director at The Character
Group said:

"DORK HUNTERS FROM OUTER SPACE is poised to capture European viewers and we look
forward to rolling out our pan-European toy product line that reflects the fun
and creative characters within the show. We envisage a full European roll-out in
late summer 2008 and we see DORK HUNTERS FROM OUTER SPACE as a strategic
cornerstone for our extensive branding initiatives."

The master toy license is part of two new major TV broadcast deals with GMTV in
the United Kingdom and RTL II in Germany announced earlier today (13 February
2007) by BKN International AG ("BKN") relating to its wholly owned UK subsidiary
BKN New Media Ltd. GMTV has acquired two seasons, totaling 36 all-new episodes
of DORK HUNTERS FROM OUTER SPACE and is set to premiere the animated action
comedy series on free -TV GMTV1 from 2008 whilst RTL II has confirmed that DORK
HUNTERS FROM OUTER SPACE is set to launch on free-TV RTL II in late 2007.

Nicola Andrews, Sales Director, BKN New Media added: "The broadcast of DORK
HUNTERS FROM OUTER SPACE in the UK and Germany reflect a key component of our
European marketing strategy. GMTV and RTL II provide exceptional broadcast
platforms for the series while Character Group is the obvious choice as our
licensing partner in Europe."

Enquiries:

Richard King, Chairman Fiona Tooley, Director
Kiran Shah, Group Finance Director & Joint MD Katie Dale, Senior Account Manager Claire Sawkins
The Character Group plc Citigate Dewe Rogerson SO PR
Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370 Tel: +44 (0) 1423 359100
Mobile: +44 (0) 7836 250150 (RK) Mobile: +44 (0) 7785 703523 (FMT) Mobile: +44 (0) 7831 452012
Mobile: +44 (0) 7956 278522 (KS)

www.thecharacter.com


Notes to Editors:

The Character Group plc designs, develops and distributes toys, games and
giftware, principally to the UK although it has an ever increasing exposure to
international markets.

Revenues are generated from a mix of product ranges with over 70% designed and
developed in-house either under the Group's own brand or under licence with the
balance being derived from third party distribution. Notable product lines are
Doctor Who, Scooby Doo, Biker Mice from Mars, Peppa Pig, GR8 Gear, Robosapien,
Roboraptor and Robopet. For a more comprehensive view of the product portfolio,
please refer to www.characteronline.com.

www.thecharacter.com

CCT.L: Sector: Media, AIM

BKN International AG is a global animation company engaged in the distribution
and marketing of animated children's television programmes and the marketing of
related consumer products (licensing and merchandising) in all forms. BKN has
worked on numerous successful animation projects.

The Company is currently listed on the Deutsche Bourse and AIM and it operates
all over the world. BKN has successfully negotiated distribution deals in over
95 countries and territories in the children's programming market.

The Company's Film Library includes:

- Legend of the Dragon - Robin Hood
- Kong - The Animated Series - Zorro: Generation Z
- Kong - King of Atlantis - Roswell Conspiracies
- Kong - Return to the Jungle - Dork Hunters from Outer Space
- A Christmas Carol - Jungle Book

DORK HUNTERS FROM OUTER SPACE (36 x 22') is BKN's latest animated action comedy.
The series follows the adventures of school-mates Mac, Nikki, Romeo, and their
earthbound friends Eddie and Angie, as they take on the nastiest, interplanetary
villains ever to hide out on Planet Earth - The Dorks. Who knew that a wrong
turn at Saturn would result in one of the funniest animated action shows
destined to grace the television screens of this, or any other planet?

That's right...you know them...you've seen them...you've smelled their breath!
Dorks are among us and they are everywhere! Sound like enough for a group of
teens to handle? Then consider that our heroes must save the galaxy while
struggling to cope with life as average teenagers in beautiful Paramus, New
Jersey. And, oh yes, they take their orders from a ...goldfish! Starting to get
the picture? This is Rick Ungar's funniest creation for kids to date.

www.dorkhunters.com


This information is provided by RNS
The company news service from the London Stock Exchange

lex1000 - 13 Feb 2007 09:47 - 233 of 263

Fantastic growth story here.Share price wont last long below 150p.Target prices 170p-225p.

lex1000 - 13 Feb 2007 09:57 - 234 of 263

Peeps very slow to cotton on to huge growth & potential of CCT.Consider get in sub 150p whilst can.Waiting breakout above 150p next target 175p.
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