Toys and games designer Character (CCT:AIM) has gained the UK and Ireland master toy distributor rights to the globally popular Pokemon brand, sparking a 4% share price gain to 504.5p.
Admittedly the ranges won’t be ready for this Christmas, but the deal will allow Character to deepen and broaden an already-winning portfolio of products, thereby extending its competitive advantage in a tough market.
WICKED NEWS
Character has struck a deal with US-based Wicked Cool Toys which is the global master toy licencee. It will see action figures, playsets, plush, role play and other toys based on the hit animated series added to Character’s portfolio from next summer.
Jon Diver, Character’s Joint managing director, says the AIM constituent is thrilled to be adding such an iconic and powerhouse property as Pokemon to Character's product line up. He adds that toys are a major part of the Pokemon brand and bring a tangible dimension to fun for kids.
‘The partnership with Wicked Cool Toys spells exciting times ahead and gives Character a tremendous opportunity to add further breadth and depth to our product range; we cannot wait to get started,’ he comments.
QUITE A CHARACTER
Shares recently highlighted recent price weakness at New Malden-headquartered Character as a buying opportunity at 470p in our Smaller Companies section. Today’s well-received news means the call has yielded a swift 7.3% gain so far, but there should be additional upside to follow.
While weak sterling is pressuring margins and the UK consumer backdrop looks testing, Character is an international distributor with a diversified portfolio of iconic brands appeal to successive generations of children.
Character has held the brand licence for Peppa Pig since 2004, while other top brands include Little Live Pets, Minecraft, Scooby Doo and Fireman Sam.
More recently, Character announced the extension (14 Jul) of its licence for smash hit pre-school property Teletubbies for an additional three years, demonstrating the confidence that Teletubbies intellectual property holder DHX Brands has in its ability to develop and commercialise the toy product portfolio.
