TANDEM GROUP PLC 
By Half Yearly Report
for the six months ended
30 June 2012
CHAIRMAN'S STATEMENT Introduction
I am pleased to present the unaudited financial statements for the 6 months ended 30 June
2012. Following the change in the accounting reference date, a comparative proforma statement to 30 June 2011 has also been prepared.
We continued to face a number of challenges during the period, most notably the exceptionally poor weather and a difficult economic and retail environment. As a result turnover reduced but, with sustained margin and cost control, profit before tax increased compared to the same period last year.
Revenue for the 6 month period to 30 June 2012 was £14,372,000 compared to £15,785,000 in the same period last year.
Operating expenses were reduced by 5.4% to £4,033,000 (2011 - £4,262,000).
Operating profit was £267,000 compared to £253,000 in the comparative period, an increase of
5.5%.
Profit before taxation increased to £193,000 compared to £137,000 in the prior period, partly attributable to a larger pension scheme finance charge last year.
Bicycles and accessories
Revenue in our bicycles and accessories businesses was £8,917,000 compared to £10,258,000 in the prior period.
The reduction in seasonal promotional national retailer business continued. Despite the administrative, logistical, warehousing, safety and testing issues involved, the current preference from a number of national retailers is to directly source product themselves. Although this position could reverse at some future point, in the short term it has had an impact on our business with national retailers.
Adverse weather conditions during the period had a material impact on both national retailer and independent bicycle dealer business. This was exacerbated by the continuing poor economic environment which has undoubtedly affected demand in the leisure cycling market.
Consequently, profit from the bicycle and accessories segment reduced from £561,000 in the prior period to £377,000 in the period ended 30 June 2012.
Sports, leisure and toys
Revenue in our sports, leisure and toys businesses was £5,455,000 in the 6 months to 30 June 2012 compared with £5,527,000 last year.
National retailers continue to exhibit cautious buying strategies. This has been the trend for more than a year now reflecting the difficult economic environment and a consumer preference for cheaper, generic items instead of higher priced, licensed product.
This risk averse strategy has meant that it has been more difficult to gain support for new licences, however, our classic licences of Thomas and Fireman Sam in particular have shown growth. This has been further enhanced by our newly acquired Peppa Pig licence, already a favourite with young children. Although a number of national retailers did not support the official London Olympic 2012 licence, it nevertheless made a valuable contribution during the period.
Sales of our own brands of Hedstrom and Pot Black were ahead of the previous period with turnover from our Ben Sayers golf business similar to last year.
Strong margin and cost control facilitated profit from the sports, leisure and toys business of
£117,000 for the 6 month period to 30 June 2012 compared to £35,000 in the same period last year.
Group revenue for the 37 week period to 14 September 2012 was approximately £22.0 million compared to £23.4 million in the comparative period last year.
Revenue in the bicycles and accessories businesses to 14 September 2012 was approximately
£13.0 million against £14.6 million in the same period last year.
In the sports, leisure and toys businesses revenue for the 37 weeks to 14 September 2012 was approximately £9.0 million compared to £8.8 million last year.
Against a difficult economic backdrop, our outlook continues to be cautious but optimistic. July was a particularly challenging trading month for the Group with the UK experiencing further dreadful weather which, when combined with the cumulative impact of the 3 previous months of poor weather, left retailers holding excessive stocks.
The feel-good factor from the fantastic results achieved by Team GB at the London 2012
Olympic Games has had a positive impact on cycling, particularly the road cycling sector. Consequently, Group performance in August was in line with the prior year and September 2012 is likely to exceed September 2011.
With the positive momentum in cycling following the Olympic Games and Tour de France we believe our Claud Butler and Dawes ranges provide an excellent choice for people wishing to take up cycling as a leisure pursuit.
Turnover continues to increase in both our Claud Butler and Dawes accessories businesses.
We are encouraged by our new licences including Peppa Pig and Skylanders. We have also signed further licences for 2013 including Bin Weevils, Mike the Knight, Monsuno, Tree Fu Tom and a number of others.
Our generic range of extreme stunt scooters is selling well and there are plans to expand this range next year.
We expect profit for the year to 31 December 2012 to be behind the prior year but all of our employees continue to work hard to deliver a satisfactory level of profitability in a challenging trading environment.
We declare an interim dividend of 1.1p per share (2011 - 1.05p per share) to be paid to shareholders on or before 2 November 2012. The ex-dividend date is 3 October 2012 and the
record date 5 October 2012.
Note
6 months ended 30 June 2012
Proforma
6 months ended
30 June
2011
11 months ended
31
December
2011
Unaudited Unaudited Audited
Revenue | 14,372 | 15,785 | 29,042 | ||||||||||||||||||||||||||||||
Cost of sales | (10,072) | (11,270) | (20,784) | ||||||||||||||||||||||||||||||
Gross profit | 4,300 | 4,515 | 8,258 | ||||||||||||||||||||||||||||||
Operating expenses | (4,033) | (4,262) | (7,391) | ||||||||||||||||||||||||||||||
Operating profit | 267 | 253 | 867 | ||||||||||||||||||||||||||||||
Finance costs | (74) | (116) | (47) | ||||||||||||||||||||||||||||||
Profit before taxation | 193 | 137 | 820 | ||||||||||||||||||||||||||||||
Tax expense | (9) | (38) | (179) | ||||||||||||||||||||||||||||||
Net profit for the period | 184 | 99 | 641 | ||||||||||||||||||||||||||||||
Pence | Pence | Pence | |||||||||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||||
Basic | 3 | 3.95 | 2.01 | 13.37 | |||||||||||||||||||||||||||||
Diluted Share
© Publicnow - 2013
Tandem Group plc is a United Kingdom-based designer, developer, distributor and retailer of sports, leisure and mobility equipment. The Company's segments include Toys, Sports & Leisure; eMobility; Bicycles, and Home & Garden. The Toys, Sports & Leisure segment comprises character licensed products which are mainly wheeled toys (excluding character bikes) and own brand sports and leisure products, sold to both independent and national retailers. The eMobility segment includes sales of electric scooters, bikes, golf trolleys and mobility scooters. The Bicycles segment includes both child and adult bicycles, along with licensed character bikes, but excludes any electric bicycles. The Home & Garden segment includes outdoor living products and homeware items, mostly sold from its online platform and third-party marketplaces. Its bicycles and accessories brands include Boss, British Eagle, Claud Butler, Dawes, Elswick, Explorer, Falcon. Its golf brands include Ben Sayers and Pro Rider.
Sector
Recreational Products
Calendar
2024-09-10
- Q2 2024 Earnings Release (Projected)
Trading Rating
Investor Rating
ESG Refinitiv
EPS RevisionsAnnual profits - Rate of surprise
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