The Toys R Us bankruptcy last month is set to continue to impact the Group for some time.
Companies: Character Group plc
This morning's trading update from Character Group (LON: CCT) has sent shares in the Group tumbling as Management warns FY18 performance will be "significantly below current market expectations."
The current financial year which began in September has been impacted by several factors, not least the downfall of Toys R Us last month as they filed for Chapter 11bankruptcy protection in North America.
Shares in CCT were down over 20% at the time of writing to 355p.
Management also said its international customers are taking a "very conservative" approach to purchases.
They did, however, believe this to be a "temporary" downturn and that it will return to its previous trading patterns in H2 18, which will be reflected in the financials of FY19.
The news of Toys R Us filing for Chapter 11 in the US and Canada last month sent shockwaves through the toy industry, with the household name's downfall having knock-on repercussions in markets around the world, including the UK.
The news of the bankruptcy protection on September 20 sent CCT shares down 6% as Toys R Us account for roughly 8% of Character Group's sales.
CCT share price has ridden the wave of a number of ebbs and flows over the past three years, with today's share price of 355p 80 pence below yesterday's closing price. The Group currently trades at a PE ratio of 8x, half the industry median of 16x.
