Trading Update

London: Monday, 28 September 2026: The Board of Character (AIM:CCT) provides the following trading update ahead of the publication of the Company's audited annual results for year ended 31 August 2026 ("FY26").

Sales in the all-important months of July and August were very encouraging and we are pleased to report a strong finish to FY26. Whilst international sales (especially in the USA) were lower, it is satisfying to see that the UK and Scandinavian divisions' sales trended higher. Having reversed the drop in sales reported in the first half of FY26, sales for the full year are expected to be broadly similar to that of the prior year ended 31 August 2025. The improved gross profit margin reported in H126 has been maintained in the second half of the year. As a result, the Board now expects the Group's profit before tax and highlighted items for FY26 to exceed current market expectations by approximately 20%.

In July 2026, the sale of the Group's warehouse and associated premises in Middleton, Lancashire was completed for £9.8m. These proceeds have significantly increased the Group's cash reserves which currently stand at over £20.0m. The Board is assessing the Company's capital requirements and the potential to return any excess cash to shareholders.

Despite the current economic challenges, overall trading remains positive as we lead up to the Christmas 2026 season. The Group's product ranges are selling well, and the higher margin is being maintained. With a strong product portfolio, backed by a robust balance sheet and a healthy cash position, the Board looks to the year ahead with optimism.

The Group is scheduled to publish its audited 2026 Annual report and accounts in December 2026. At this time, the Board will update shareholders further.