UK toy firm Character Group has pulled its financial targets for the year due to the prospect of impending US tariffs.
Shares in the toy manufacturer and distributer slid early on Friday as a result.
The Surrey-based business is the latest firm to caution over uncertainty linked to US President Donald Trump’s tariff regime, which was announced last week.
Mr Trump has since announced a 90-day pause but hiked planned tariffs on Chinese imports into the US.
On Friday, Character Group said its ability to accurately forecast its sales to the US – which represented around 20% of revenues for the past year – has been “considerably obscured” by the trade tariffs.
It said it expects to feel the impact of tax increases in the second half of its financial year to August 31 but is withdrawing its market guidance due to the uncertainty.
However, bosses at the firm said they are still “confident” that it will be profitable for the financial year as a whole.
It added that its results for the six months to February – which are due to be published next month – are set to be in line with the same period a year earlier, when it recorded a £2.1 million pre-tax profit.
In a statement, Character Group said: “The company continues to have a strong balance sheet with healthy cash balances and the board is confident that it can ride out this storm.
“As we gain a clearer picture of the global economic landscape emerging, we will update shareholders further.”
Character Group shares were down 6.2% at 242p on Friday morning.
