Bob the Builder owner reports steady progress

Children’s entertainment and licensing group Hit soothed fears over tough trading conditions today after reporting a steady start to its financial year.

The company, which has Bob the Builder and Thomas the Tank Engine in its portfolio of characters, said the retail environment remained tough with continued weakness in the US dollar providing additional pressure.

As expected, sales of videos and other home entertainment products - accounting for 45% of the business – were lower than a year earlier, but “resilient” in the run up to Christmas.

The performance helped offset market weakness in consumer products licensing, which also makes up 45% of the company’s sales.

In an update covering the six months to January 31, Hit said: “Current pressures on trading are expected to improve towards the end of the financial year and the board envisages a satisfactory performance in the second half.”

Shares rose by almost 3% following the trading update, which was issued ahead of half-year results due in March.

HIT, which was founded in 1989, is now the fourth biggest children’s video distributor in the UK and the United States and the fourth biggest children’s character licensing company in the world. With more than 1,000 episodes of programming HIT sells programmes to over 180 countries worldwide.

It also owns the rights to Barney, Angelina Ballerina, Pingu and Guinness World Records.