OLDHAM-based toy company Character Group is relying a credit cushion of £50 million and "sizeable" cash reserves to ride out the effects of coronavirus pandemic.

The company with a site in Lees Road has seen pre-tax profits for the six months to February 29 dip from £5.6 million last year to £2.5 million and revenue has fallen to £51.7 million from £58.8 for the same period.

London Stock Exchange-listed Character employs a total of 106 people in Oldham, and others in Scandanavia and Asia.

A statement issued on the LSE this morning (Friday, May 28) on behalf of joint managing directors Jon Diver and Kiran Shah said: "There is no disguising the fact that the severity and duration of the Covid-19 pandemic has considerably affected the toy sector globally and will affect our second half results for this financial year.

"However, with the proven record of our operational management team to judge the market and swiftly react to the changing environment and conditions, we intend to be fully open for business and to re-establish our prior trading trajectory as soon as we are safely able to."

It said the board expects to achieve a profit in the second half and for the current financial year as a whole."

The statement added: "With a sizeable cash balance and substantial unutilised bank and finance facilities of at least £50 million, the group has a strong balance sheet, is financially robust and poised to return to its normal pattern of trading as soon as conditions allow."

Character boasts a reputation as the largest independent toy company in the UK, designing, developing and distributing internationally toys, games and giftware.

Standout performers during the six months included Peppa Pig, Pokemon, Goo Jit Zu and Little Live Pets. Goo Jit Zu launched successfully in the USA, during the period.

During the second half of the financial year, its portfolio will be further bolstered by the "exciting new launches" of Gotta Go Flamingo (from the Little Live Pets range), Squeakee the Balloon Dog, Laser Battle Hunters, Shimmer 'n Sparkle (including Instaglam) and a sustainable and environmentally friendly range of wooden Peppa Pig toys, the firm said.