Character Group PLC on Tuesday said it expects financial year 2022 to meet market expectations, however the cost of living crisis and weak sterling have become a concern in the current financial year.

Shares in the Surrey, England-based toy, games, and gifts manufacturer were down 10% to 438.00 pence each in London on Tuesday around midday.

Character said that sales momentum in its financial year ended August 31 continued, despite of continuing high freight rates and the increasing strength of the US Dollar.

On the back of this, it expects underlying pretax profit for financial year 2022 to be in line with current market expectations of £11.3 million.

The company said that since the end of financial year 2022, it has focused on the lead up to the ‘all-important’ Christmas trading period. It added that its new ranges for the 2023 season have been well received by both its customers and prospective customers during industry previews.

However, Character now expects that trading in its current financial year will be ‘unlikely’ to match the expected outcome for financial year 2022. It noted that the weak Sterling paired with concerns over cost-of-living increases are likely to curtail spending in the lead up to Christmas.

The company added that it is still committed to maintaining a progressive dividend policy, as it continues to trade profitably with a strong balance sheet.

The company expects to publish its full-year results for its financial year 2022 in December.

Copyright 2022 Alliance News Limited. All Rights Reserved.