Actively run bond fund seeks to generate income and preserve capital
Character (CCT:AIM) 522.5p
Gain to date: 10%
Original entry price: 475p, 31 Mar 2016
Our bullish call on toy company Character (CCT:AIM) has netted us a 10% gain since we added it as a Play on 31 March and we think further upside is on the horizon.
We particularly like the stock at the moment because of the resilience of the toy industry during times of economic uncertainty. Research suggests spending on children is one of the last things parents cut down on during a downturn.
The £112 million cap is able to stay ahead of the curve when it comes to pre-schoolers’ favourite toys, with the launch of its Teletubbies range in January going down a storm. The range has become a standout performer and helped Character grow revenues by 12% to £65.2 million in the six months to 29 February.
Character will soon launch toys based on 1970s action figure Stretch Armstrong, which follows the group’s hit Peppa Pig, Fireman Sam and Little Live Pets ranges.
Character is forecast to produce a full-year pre-tax profit of £15 million - a year-on-year rise of 7.1%.
Character enjoys strong growth prospects and defensive qualities. (EP)
