Media firm Hit Entertainment has seen a 29% drop in income generated by its TV character Bob the Builder.
Hit believes its future remains bright
The firm, which also owns Thomas the Tank Engine, said its half-year, pre-tax profits before exceptional items fell 5.9% to £24m ($43.9m).
Hit said the lower availability of Bob the Builder products over Christmas was partly to blame for the sales drop.
However, it insisted that a planned relaunch of the children's favourite in 2005 would boost its fortunes.
Sales of Bob the Builder products were affected over Christmas by Hit's decision to change its toy licensing partner, which in turn resulted in a reduced availability of products in the shops.
But chief executive Rob Lawes said the pre-school character was still its main source of income, accounting for 23% of revenue.
Hit said the new series of the programme would see Bob and his brother Tom build an entire town from scratch.
Meanwhile, in a sign the UK company remains bullish about its future, Hit announced a doubling of its interim dividend payment.