Wrapping paper and Christmas cards group International Greetings unveiled a small fall in half-year profits today but expects to benefit from a range of new products launched in time for Christmas, featuring characters from the recently released Warner Bros film Happy Feet.
The company has also signed new licenses for The Simpsons Movie, Spider-Man 3, Shrek 3, and Pirates of the Caribbean 3, all due to be released next year.
Profits before tax dropped to £5.2m in the six months to September from £5.8m last year. Revenues rose to £85.1m from £83.8m, with like-for-like sales surging 20% in Europe, where International Greetings gets 15% of its business.
Nick Fisher, the chief executive, said the fall in half-year profits was purely down to the timing of shippings, which varies from year to year, making the first half a poor indicator of full-year performance.
He delivered an upbeat message: "While we operate in the highly competitive UK retail sector and are not immune to its challenges, we have completed the majority of this season's deliveries to our customers."
He noted that many people leave their Christmas shopping until the last minute.
"Christmas is getting later and later. The US and Europe are much stronger than the UK - that's why we are focusing our efforts there. Everyone knows the UK is tough," he said.
The company manufactures in Holland and distributes its cards and other products throughout Europe, as well as the US, which makes up a quarter of group revenues. It plans a new distribution channel for the US where it wants to offer a complete range of its products to mid-size retailers.
The company's new factory in China is open and has delivered all orders on time and within budget.
As the only listed company in its sector in Europe, International Greetings' goal is to act as an industry consolidator and snap up rivals as part of its growth strategy, Mr Fisher said.
"Some smaller guys are finding it pretty tough. We are always in discussions with other people - watch this space," he said.
The firm has already swallowed Alligator Books, which publishes kids' activity books and turned International Greetings into the biggest fridge magnet supplier in the country. The group has also bought the remaining 50% shareholding in its Dutch joint venture, Anchor International.
For International Greetings, this Christmas is already past. "Our sales teams are very much focused on Christmas '07," Mr Fisher said.