TOY company Character Group, which employs around 100 staff at its main UK distribution and operational hub in Oldham, posted pre-tax losses of £3.84m for the first half, compared with profits of £3.25m in the same period last year.

Revenues during the six months to February 28 slumped 22 per cent, from £48.6m to £37.8m. There is no interim dividend.

Character Group incurred an exceptional loss of just over £1m, representing a bad debt suffered when Woolworths went into administration.

Chairman Richard King said a handful of jobs had gone at Oldham during a drive to cut costs. Staff who have left have not been replaced, and fewer temporary workers have been taken on during busy periods.

However, he said the group anticipated trading profitably during the second half although it was unlikely to recover the losses sustained in the first six months.