Toys, games and giftware firm Character Group (LON: CCT) shares have plunged on Wednesday after the company said supply chain and other issues have impacted its full-year outcome.
The company said that the easing of Covid-19 restrictions has positively impacted sales, and the second half of the year has seen continued strong performance in sales of its product portfolio, with many brands outperforming management expectations.
However, the outcome for the full year has been affected by several factors such as supply chain issues, which include ongoing delays at ports, shipping and container shortages, exponential increases in freight rates, and increased costs of inland transportation in China and the UK.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Higher raw material prices have also impacted Character’s profitability.
“The immediate outlook for an early improvement in supply chain efficiency to ensure timely fulfilment is currently unclear,” the company said in a statement.
“Notwithstanding this and the variety of challenges that the Group has faced and is facing, our determined and unswerving dedicated teams in UK, Scandinavia, Hong Kong, and China have reacted positively to these issues,” they added.
While the issues have been significant, Character Group said there has been a limited downside, and it expects pre-tax profit for the year ended 31 August 2021 to decrease by no more than 10% of market expectations.
So far on Wednesday, the company’s shares are down over 18.7% at 565p, giving up some of the year-to-date gains.
Should You Invest in Character Group Shares?
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It’s a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
