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Character Group extends Teletubbies contract

The designer and distributor of toys has extended its contract with DHX Brands for the Teletubbies franchise.
July 13, 2017

Shareholders in Character (CCT) have reason to smile. The designer and distributor of toys has agreed to a three-year extension to its master toy licence with DHX Brands for the Teletubbies franchise. The deal is set to run until 2020 and grants the company worldwide manufacturing rights and UK distribution. The company is planning to add more plush and plastic toys to the range inspired by elements from season two, which launched earlier this year. Character’s partnership with DHX Brands began in 2014, and after the Teletubbies product range relaunch in 2016 it was the best-selling new toy property in the UK.

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The contract extension could help sooth investors’ nerves over Character’s balance sheet. Weak sterling was a drag at the half-year results in May since the group makes most of its purchases in US dollars. This weighed on the underlying gross profit margin and lackluster US sales saw pre-tax profit fall by a quarter to £6.5m, but a cost-cutting programme is under way and new product launches are in play.