The Character Group plc has announced the withdrawal of its market guidance for the financial year ending 31 August 2025, citing significant business uncertainty stemming from escalating trade tensions between the United States and China.
In a trading update released today, the UK-based toy manufacturer revealed that recent unilateral tariff impositions by the US on Chinese imports, followed by retaliatory measures, have “greatly impacted global economic stability in a very short space of time.”
The Character Group is one of a growing number of UK-listed companies that have officially acknowledged the impact of tariffs on their business. One would expect more to do so over the coming days.
The company, which attributed approximately 20% of its group turnover to US sales in the previous financial year, stated that its ability to forecast American sales and assess financial implications has been “considerably obscured” by recent events.
Despite withdrawing guidance, Character Group’s board expressed confidence that the company will remain profitable for the current financial year. The firm highlighted its “strong balance sheet with healthy cash balances” that will enable it to “ride out this storm.”
The company’s half-year results, due to be published in mid-May, are expected to align with market expectations and match the first-half performance of the prior year, when the group reported a profit before tax and highlighted items of £2.1 million.
Character Group indicated it would provide shareholders with further updates as the global economic landscape becomes clearer.