REG - Tandem Grp PLC - Final Results
24/03/2025 07:00
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RNS Number : 7639B Tandem Group PLC 24 March 2025
TANDEM GROUP PLC
(the "Company" or "Group")
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024
11% growth in revenues and performance in line with market expectations
The Board of Tandem Group plc (AIM: TND), designers, developers, distributors
and retailers of sports, leisure and mobility equipment, announces its audited
results for the year ended 31 December 2024 ("FY24").
Summary
· Group revenue in FY24 of £24.6 million, an 11% increase (FY23:
£22.2 million) - with growth across all categories other than Home &
Garden:
o Toys, Sports & Leisure revenue increased 19% to £12.4m (FY23:
£10.4m) across both licensed and own-brand products and all channels.
o Bicycles revenue grew 11% to £7.4m (FY23: £6.6m), including 39% increase
in mechanical bikes revenues and a 69% increase in Squish children's bike
sales during the year.
o Golf sales increased 13% to £2.5m (FY23: £2.3m).
o Home & Leisure revenues decreased 21% to £2.3m (FY23: £3.0m),
reflecting the effect of unfavourable weather conditions throughout key sales
periods.
· Profit before taxation and exceptionals* of £0.5 million (FY23
loss before tax and exceptionals : £1.0 million).
· Gross profit of £7.4 million (FY23: £6.0 million) at a gross
profit margin of 29.9% - an increase of 290 bps (FY23: 27.0%)
· Cash and cash equivalents of £1.4 million at 31 December 2024
(31 December 2023: £0.4 million)
· Net assets at 31 December 2024 of £23.9 million (31 December
2023: £23.8 million)
· Net debt at 31 December 2024 of £4.3 million (31 December 2023:
£3.6 million)
· Amidst a difficult economic environment, there have been encouraging
signs. The Group has delivered resilient performance during a period in which
multiple industry participants have become highly distressed. The continued
success of our initiatives and a strategic focus provide the Board with
confidence for the future.
· Despite ongoing market challenges and uncertainties, we are pleased to
report that sales for 2025 have started well and are in line with the Board's
expectations, marking an optimistic beginning to the current financial year.
· As signalled at the time of the Company's interim results published in
September 2024, the Board will resume dividend payments in the future at such
time as the Company's profits permit.
*Exceptional costs in 2024 £409,000 (£103,000 in 2023) in respect of
employment costs relating to planned retirement of the commercial director for
whom a replacement was on board in July 2024, relocation costs for the Hong
Kong Office and the non-cash impairment of the new IT system costs, the
development of which has ceased, in light of the developments of the business.
There was £71,000 in Finance costs relating to the pension schemes (£73,000
in 2023).
For further information contact:
Enquiries:
Tandem Group plc
Peter Kimberley, Chief Executive Officer
Gurvinder Kaur, Chief Financial Officer
Telephone 0121 748 8000
Nominated Adviser and Broker
Cavendish Capital Markets Limited
Ben Jeynes / Dan Hodkinson - Corporate Finance
Michael Johnson / Charlie Combe - Sales and Equity Capital Markets
Telephone 020 7220 0500
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended. Upon the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.
Chairperson's statement
Introduction
I am pleased to present the results of the Group for the year ended 31
December 2024, a year in which the Group delivered a double-digit increase in
revenue and a return to a pre-tax profit.
Financial highlights
• Group revenue increased by 11% to £24,619,000 (FY23: £22,242,000)
• Strong H2 growth: 19% revenue increase delivered across all
categories, except for Home & Garden
• The Group returned to profitability, with a net profit before tax of
£30,000
• The Group's net assets have increased to £23,915,000 (FY23:
£23,811,000)
Toys, Sports & Leisure
Revenue increased by 19% in 2024 compared to the previous year with an uplift
across both licensed and own-brand products. Despite widespread reports of
challenging retail conditions, we saw growth across every channel. In 2023, we
experienced a drop in FOB sales as more customers opted to mitigate risk by
shifting towards domestic purchases. However, this trend reversed in 2024,
with FOB sales rising by 14% over the previous year, while domestic sales also
grew by 22% as a result of an increased customer base and new product
development.
In addition, sales through our own websites saw significant growth,
particularly in marketplace sales, which surged by 34%. The success of these
increases in sales can be attributed to our focus on newness and innovation,
which has allowed us to better meet customer needs, drive interest, and
maintain a competitive edge in the market. We are delighted this has been
recognised by receiving multiple industry awards, including Right Start Awards
and Made For Mums across both our own brand and licensed wheeled products.
Bicycles
Total bicycle sales, including electric bikes, finished 11% ahead of the
previous year, significantly outperforming the broader sector. This was
against a challenging market across all customer types, from independents to
national retailers.
Sales of mechanical bikes finished 39% ahead of the previous year and
outperformed the market. Within this category sales of our premium kids' bike
brand, Squish, surged by 69% in part driven by our partnerships and
recognition as 'BikeBiz Brand of the Year'. Electric bikes saw an 8% decline
in sales, which is in line with the market, however we have managed our
inventory and developed a comprehensive range of industry leading products
that we expect to deliver growth in 2025 and beyond.
Our B2C Electric Life brand has continued to deliver consistent year-on-year
growth. Our contemporary designed public showroom, led by passionate and
skilled colleagues provide servicing and repairs across bikes and scooters
whilst delivering a first-class customer experience, something reflected in
our online reviews. The product range has been enhanced with the addition of
market leading brands including Dashel helmets, Tern, Gocycle and VanMoof to
our existing retail portfolio of Whyte, Orbea and own brands; Dawes, Claud
Butler and Falcon, which are all available for free test rides. To complement
the showroom our fully transactional website also includes the addition of
non-electric bikes from all brands to the online portfolio which are available
for click & collect and home delivery.
Golf
Golf sales increased by 13% year-on-year, reflecting strong performance across
the division. The Ben Sayers brand finished 2% down year-on-year; however,
this was more than offset by exceptional growth in the Pro Rider range. A
focus on product development drove triple digit growth from Pro Rider new golf
trolleys and package sets and highlighted the success of our innovation-led
approach. In 2025 our Ben Sayers range will receive a comprehensive refresh
and enhancement to the range.
Home & Garden
The Home & Garden division was challenged by the ongoing cost-of-living
crisis which suppressed discretionary consumer spending, a trend widely
reported throughout the year, resulting in ending the year 21% behind the
prior year's revenue. The effect of unfavourable weather conditions throughout
key sales periods, Easter and the Summer School holidays curbed demand for
outdoor products including cooling, gazebos, outdoor furniture, and parasols
which declined significantly. The short burst of cold weather in December did
however increase sales in heating and home products which helped mitigate the
overall impact.
Group operating profit
Group operating profit before exceptional costs, finance costs and taxation
increased to £814,000 for the year ended 31 December 2024 compared to a loss
of £768,000 for the year ended 31 December 2023. Gross margin was 29.9%
against 27.0% in FY2023 and a decrease in operating expenses from £6,768,000
in the prior period to £6,552,000 in the year to 31 December 2024. This
reduction was partly due to a rates refund of £156,000, after the rateable
value date was finalised.
Group balance sheet
The business has continued to control its levels of inventory throughout the
year, ending the period in a good stock position with new, innovative products
being introduced, leading to an increase in levels held at the year end to
£5,930,000 compared to £5,161,000 in the prior period. Due to Chinese New
Year being earlier and the longer shipment times from the Far East, this led
to higher goods in transit of £535,000 compared to £16,000 for 2023.
Cash and cash equivalents increased to £1,385,000 at 31 December 2024
compared to £447,000 at 31 December 2023, with the Group moving from a net
debt position as at 31 December 2023 of £3,568,000 to £4,322,000 at 31
December 2024 due to the higher inventory.
Further details of operational activities can be found in the Strategic
Review.
Dividend
In previous years it has always been the Board's intention to maintain a
progressive dividend as trading results and funds permit. However, and as
previously announced, the Board is of the view that no dividend should be paid
in respect of FY24, as was the case for the year ended 31 December 2023.
This will also assist to preserve cash in accordance with the provision that
in any calendar year should dividend payments exceed pension deficit
contributions, an additional contribution, equal to the excess, is paid into
the Tandem Group Pension Plan. For the year ended 31 December 2023, an
additional payment of approximately £188,000 was paid into the Tandem Group
Pension Plan. Due to no dividend for 2023, no additional payment was required
during the year ended 31 December 2024.
Colleagues
Our colleagues remain a key differentiator in delivering our strategic
objectives. Over the past year, we have strengthened our already talented team
by attracting new colleagues to support our strategic goals and growth
opportunities.
Leadership
Peter brings an energetic and forward-thinking approach to the business,
guided by a clear and focused strategic vision. He has enhanced the team in
key areas, positioning the Company to successfully pursue its long-term growth
objectives.
Outlook
Despite ongoing market challenges and uncertainties, we are pleased to report
that sales for 2025 have started well and are in line with the Board's
expectations, marking an optimistic beginning to the year.
In our Toys, Sports & Leisure division both FOB and domestic sales
continue to show growth over 2024, highlighting our resilience and
adaptability in the face of evolving market conditions. This growth reinforces
our confidence in the future as we keep driving the division forward through
continuous innovation and fresh offerings.
In line with our strategy, we are also expanding our licensed ranges, adding
five new licenses. This strengthens our position as the UK's market leader in
licensed wheeled goods. Our 2025 lineup includes exciting new partnerships
with brands such as Wicked, Jurassic Park, Unicorn Academy, Hot Wheels, and
Superman. Additionally, we are thrilled to share that both Disney's 'Stitch'
and the BBC's 'Bluey' brands are expected to continue to grow in 2025, with
strong consumer demand driving encouraging sales.
We are further introducing new products across our own-label portfolio, which
we believe will resonate strongly with our customer base. Notably, we have
launched a new children's scooter brand, 'Pets2Go,' which combines the latest
trend in pet plush toys with practical scooter storage, offering a fresh and
innovative take on tri-scooters.
We successfully introduced 11 new eBikes to our Dawes, Claud Butler and Falcon
brands in H2 last year and we will benefit from full availability of these
throughout 2025. We have also developed an additional four new eBikes that
will launch in H1 2025 and result in a complete range of 18 market leading
entry price point eBikes across eMTB, eHybrid, eHeritage and eFolding. With
retail prices below £1,000 for a selection of our own-brand eBikes, we have
strengthened our position as the UK's leading distributor of affordable
electric bikes.
Alongside continuing to grow and expand our exclusive distribution of own
brand bikes, we will continue to grow our exclusive distribution partnership
with third-party brands. In April we took over the full UK distribution of
Swytch, which uses an innovative conversion kit turning mechanical bikes into
an e-bike with ease. Joining Swytch in our line up in Q4 was VanMoof,
Netherlands based with its high-tech, sleek award-winning urban e-bikes. We
are also exclusively distributing Dashel helmets, British designed and
manufactured stylish helmet brand which produces their products from recycled
plastic with B-Corp status. The addition of these third-party brands
complements our core own brand product range whilst driving category growth
and market share.
We are delighted to continue our partnership with the premium brands Orbea,
Whyte, Gocycle and Tern through our Electric Life retail showroom. These
partnerships continue to enhance our market position and expand our reach to a
wider customer base, enabling us to capitalise on the growing demand for
electric bicycles in our retail proposition.
We are excited to build upon the success of our mechanical bike range with a
complete relaunch of the Dawes Discovery/Venture hybrid range across 9 models,
and Claud Butler Haste Mountain bike range in Q1 2025. This newly designed
product line up is competitively positioned within the market and includes
modern specification, geometry and artwork.
We will continue to grow our lightweight kids bike brand, Squish, by
leveraging the BikeBiz 'Brand of the Year' award, taking market share from
competitors, and by growing brand recognition/future market size through our
nationwide partnerships in schools. We are looking forward to expanding the
range and introducing a 'Squish Go', a competitively priced lightweight entry
sized balance bike.
In our golf division and following incredibly successful innovative product
launches for Pro Rider in 2024, we have developed a new range of Ben Sayers
products launching in Q1 2025 to complement our core range. Our new product
range will continue to target the mid to high handicap golfers, with more
modern, aesthetically pleasing designs and a focus on value-performance. The
headline range updates will include our best-selling package sets and the
entire range of Ben Sayers stand/cart bags.
We are pleased to announce for 2025 a range of new categories to expand our
Home & Garden division. These additional products span categories across
outdoor heating, outdoor rugs, clocks, indoor décor with further enhancements
to our storage proposition. This year we are leveraging new domestic sourcing
partners allowing us to remain agile and help mitigate any potential Far East
shipping distribution issues which may impact stock availability. This
expansion reflects our continued commitment to offer on-trend, innovative
solutions for both indoor and outdoor living. We strive to enhance our
customers' lifestyle experience by offering stylish, functional options that
deliver exceptional value, helping customers to transform their living spaces.
As part of our commitment to driving growth, we continue to invest in
marketing content across our Group's diverse product portfolio. We remain
dedicated to supporting all accounts, partners, and our own retail channels
with high-quality product content across visual, motion, and written formats.
The positive feedback we are receiving from our accounts highlights the
effectiveness of these improvements and positions us to build upon this and
further enhance and expand our content strategy in 2025.
As the business looks ahead to the remainder of 2025, we hold a cautiously
optimistic view of our market position. With our strategic initiatives well
underway across the Group, we are confident in our continued growth momentum
for 2025 and beyond. Looking ahead, the Group is well-positioned to seize
emerging opportunities and leverage its core strengths to drive long-term,
sustainable growth. The Board remains assured of the Group's strategic
direction, anchored by our unwavering commitment to innovation, customer focus
and operational excellence.
S J Grant
Chair
21 March 2025
Strategic report
Operating and Financial Review
Revenue
Group revenue for the year ended 31 December 2024 was £24,619,000 compared to
£22,242,000 in the prior year. As detailed in our Interim Results published
on 19 September 2024, we have revised our sales reporting format which is
crucial for enhancing operational efficiency and strategic decision-making.
This approach not only provides more accurate and timely insights but also
aligns seamlessly with our Group's operational strategies. By transitioning to
this improved reporting method, we can better track performance, quickly
identify trends, and make informed decisions that drive growth and innovation.
Ultimately, this transformation in sales reporting empowers us to operate more
effectively and stay ahead in a competitive marketplace. The Group's revenue
is split into the four main business segments as follows.
2024 2023 2022
(£000s) as restated as restated
(£000s) (£000s)
Toys, Sports and Leisure 12,362 10,369 14,260
Bicycles, including electric 7,380 6,630 6,033
Golf 2,548 2,261 2,492
Home and Garden 2,329 2,982 3,898
24,619 22,242 26,683
Gross profit
Gross profit of £6,000,000 in 2023 increased by 22.8% to £7,366,000 in 2024.
The gross profit margin percentage increased from 27.0% to 29.9%. The Group
has again continued to work hard on negotiating cost reductions, together with
less clearance activity and foreign exchange hedging in place.
Operating expenses
Group operating expenses decreased by 3.2% to £6,552,000 in the year (year
ended 31 December 2023 - £6,768,000). This reduction was partly due to a
rates refund of £156,000, after the rateable value date was finalised.
Operating result
Operating profit before exceptional costs was £814,000 for the year ended 31
December 2024 compared to an operating loss of £768,000 in the prior year.
Non-underlying items
Non-underlying items comprised:
• Exceptional costs of £409,000 (year ended 31 December 2023 -
£103,000) in respect of employment costs relating to the planned retirement
of the Group's commercial director, for whom a replacement was onboarded in
July 2024, relocation costs of the Hong Kong office and the non-cash
impairment of the new IT system costs, the development of which has ceased, in
light of the developments of the business.
• Pension finance costs under IAS19 of £71,000 (year ended 31
December 2023 - £73,000); and
• A deferred tax charge of £83,000 (year ended 31 December 2023 -
£130,000) in respect of pension schemes.
Finance costs
Total net finance costs increased to £375,000 in the year ended 31 December
2024 compared to £327,000 in the year ended 31 December 2023.
There was an increase in total interest payable on bank loans, overdrafts,
hire purchase and invoice finance facilities from £324,000 in the prior year
to £374,000 in 2024 due to the increased borrowing to fund the new warehouse
construction. This was offset by the income received from the Group's interest
rate hedge of £70,000 (2023: £70,000).
Finance costs in respect of the pension schemes provided in line with IAS19
were £71,000 compared to £73,000 for the year ended 31 December 2023.
Taxation
The tax expense for the year ended 31 December 2024 was £90,000 compared to
£39,000 in the prior year.
The corporation tax charge in the year ended 31 December 2024 of £2,000 is in
relation to the Hong Kong operation (year ended 31 December 2023 net credit -
£155,000, which comprised a corporation charge for the Hong Kong operation
and a net refund of UK corporation tax paid in 2022).
There was a deferred tax charge of £88,000 compared to £194,000 in the prior
year.
Net loss
Net loss for the year ended 31 December 2024, after non-underlying items,
finance costs and taxation charges was £60,000 compared to a loss of
£1,237,000 for the year ended 31 December 2023.
Adjusted EBITDA
Adjusted EBITDA (Earnings Before Interest, Taxation, Depreciation,
Amortisation and Exceptional Costs) was £1,132,000 for the year ended 31
December 2024, compared to (£461,000) in the prior year.
Capital expenditure
Total expenditure on property, plant and equipment incurred during the year
was £86,000 (year ended 31 December 2023 - £985,000). A decision was made by
the Board to write off the costs of £263,000 relating to a new IT system that
was going to be introduced due to the development of which has ceased, in
light of the developments of the business.
Cash flows, working capital and net cash
Net cash inflow from operating activities before movements in working capital
for the year ended 31 December 2024 was £612,000 compared to an outflow of
£1,146,000 in the year ended 31 December 2023.
Cash outflow from operations was £347,000 compared to £358,000 last year.
Net cash outflows from investing activities were £86,000 in 2024, against
£1,009,000 in the previous year due to the capital expenditure for last year
of £985,000.
There was a net cash inflow from financing activities of £1,692,000 in 2024,
which compared to an outflow of £1,170,000 in 2023. The net inflow was due to
the drawdown of the invoice finance facility in December 2024.
As a result of these movements the closing cash position at 31 December 2024
was £1,385,000 compared to £447,000 at 31 December 2023.
Net debt, comprising cash and cash equivalents less invoice financing
liabilities and borrowings, was £4,322,000 at 31 December 2024, compared to
£3,568,000 at the end of the previous year.
Dividends
Due to the current year results, no final dividend will be paid for the year
ended 31 December 2024 (year ended 31 December 2023 - nil pence per share).
Total dividends paid and proposed for the year ended 31 December 2024 are nil
pence per share (year ended 31 December 2023 - nil). As the total dividend
will not exceed the deficit repair contributions paid to the Tandem Group
Pension Plan, in accordance with a previous agreement with the pension scheme
trustees, there will be no requirement to pay an additional contribution equal
to the excess into the scheme.
Loss per share
Basic loss per share was 1.1 pence per share for the year ended 31 December
2024 compared to a basic loss per share of 22.6 pence per share in the year
ended 31 December 2023.
Product range overview
Turnover has been split into four segments: Toys, Sports & Leisure,
Bicycles, Golf and Home & Garden.
Toy, Sports & Leisure
In 2024, this division delivered a revenue increase of 19% compared to the
previous year. Despite widespread reports of challenging retail conditions, we
achieved growth across all channels. Following a decline in FOB sales in 2023,
as many customers shifted to domestic purchases to mitigate risk, this trend
reversed in 2024. FOB sales rose by 14%, while domestic sales grew by 22%.
Additionally, our online sales grew significantly, with marketplace sales
increasing by 34%. This success is a result of our emphasis on product
innovation and the introduction of new ranges, allowing us to better meet
customer needs, drive engagement, and maintain a competitive edge.
Building on our successful strategy, we are expanding our licensed ranges with
five exciting new licenses, further cementing our position as the UK's leading
brand in wheeled goods. Our 2025 lineup features fantastic collaborations with
hot new properties and brands like Wicked, Jurassic Park, Unicorn Academy, Hot
Wheels, and Superman offering even more choices for our customers.
We are also pleased with the success of Disney's 'Stitch' and the BBC's
'Bluey' in 2024, as both have far exceeded management expectations, driven by
strong consumer demand and growing sales performance.
Looking ahead, we are introducing an exciting range of new products across our
own-label portfolio, designed to truly connect with our customers. One
standout addition is 'Pets2Go,' a brand-new children's scooter that blends the
latest pet plush toy trends with practical scooter storage, creating a fun and
innovative twist on tri-scooters.
Bicycles
In 2024, total bicycle sales, including electric bikes outperformed the
broader market with an 11% year-on-year growth despite challenging market
conditions across customer segments from independent retailers to national
chains.
Mechanical bike sales were particularly strong, growing 39% year-on-year and
significantly outpacing the market. Notably, the Squish premium kids bike
brand saw a significant increase of 69%, driven by our strategic partnerships
and our recognition as BikeBiz Brand of the Year.
While electric bike sales declined by 8%, mirroring the broader market trend,
we have strategically managed inventory levels and expanded our product range,
positioning ourselves for growth in 2025 with industry-leading offerings. In
the second half of 2024 we launched 11 new eBikes under our Dawes, Claud
Butler, and Falcon brands, and we look forward to benefiting from a positive
sales uplift with full availability of this range in H1 2025. We will also
introduce four new eBikes in H1 2025, completing a comprehensive portfolio of
18 market-leading entry-level eBikes spanning eMTB, eHybrid, eHeritage, and
eFolding categories, and priced under £1,000. Launching new products in H1 is
a strategic decision that is driven by our dealers and end customers increased
propensity to buy during this period and allows retailers to establish
listings in time for the peak summer season.
In light of the recent government decision to drastically reduce import duty
on electric bikes from China, we are completing a full strategic sourcing
review in this category with the results coming to market in Q4 2025.
Electric Life, our direct-to-consumer brand, continues to achieve strong
year-on-year growth, driven by its enhanced customer experience and expanded
product range. Our modern, customer-centric showroom is a hub for bike and
scooter consumers, offering expert servicing and repairs. Staffed by
knowledgeable and passionate colleagues, the showroom is designed to deliver a
seamless shopping experience, something that is consistently reflected in our
positive online customer reviews. Throughout the year, we enriched our product
lineup with Dashel helmets, Tern, Gocycle, and VanMoof. These new offerings
complement our existing portfolio of Whyte, Orbea, and our own-brands, Dawes,
Claud Butler, and Falcon; all of which are available for free test rides. To
further support customer convenience and choice, our fully integrated website
has also expanded to include non-electric bikes from all featured brands.
These products are available for both click-and-collect and home delivery,
ensuring flexible purchasing options that align with our customers' needs.
In line with our strategy to enhance our product offering and expand market
presence, we continue to grow our exclusive distribution of own-brand bikes
while growing new partnerships with leading third-party brands. These
strategic additions strengthen our portfolio and provide our customers with an
even broader range of high-quality, innovative products. In April, we took on
full UK distribution of Swytch, a brand known for its innovative e-bike
conversion kits that easily transform traditional bicycles into electric
models. Later in the year, VanMoof joined our portfolio, bringing its
cutting-edge, award-winning urban e-bikes from the Netherlands to our growing
customer base. Rounding out the lineup, we are now the exclusive distributor
of Dashel helmets, a British brand renowned for its stylish, sustainably
manufactured helmets made from recycled plastic and holding B-Corp
certification. These exciting partnerships complement our core own-brand
products and help drive additional growth across categories. By expanding our
offerings and diversifying our product mix, we are well-positioned to capture
additional market share and meet the evolving demands of the cycling
community.
Golf
Golf sales grew 13% year-on-year, underscoring robust performance across the
division. Building on the success of our Pro Rider innovations in 2024, we are
preparing a new range launch across Ben Sayers line starting in Q1 2025. Our
new range will continue to target the mid to high handicap golfers, featuring
modern aesthetics and a strong value-performance proposition. The updates will
include new iterations of our popular M8 package sets and a complete redesign
of the Ben Sayers stand/cart bags, reinforcing our commitment to delivering
accessible, high-quality products for the growing entry-level golf segment.
While Ben Sayers saw a slight decline of 2%, this was more than offset by
exceptional growth in the Pro Rider range, reflecting the effectiveness of our
innovation-driven strategy. This success is a testament to our focus on
product development, which drove triple-digit growth. The Ben Sayers range is
undergoing strategic development in 2025 to align with evolving market trends
and consumer needs.
Home & Garden
Our Home & Garden segment encompasses direct to consumer retailing of
outdoor living and homeware products experienced a challenging year with a 21%
decline in revenue compared to the previous year. We were challenged with
unfavourable weather conditions during key sales periods, reducing demand for
outdoor products resulting in a substantial sales decline in these categories.
We did however, during these short periods of cold weather, partially offset
some of the short fall by increased sales in heating and home products.
We remain firmly committed to innovation and product development, despite
these challenges. Our focus remains on introducing new, innovative products in
this segment to stay aligned with evolving consumer preferences and shifting
market conditions.
For 2025 we look forward to benefiting from the introduction of full
availability of the new product ranges we developed in the second half of last
year across cooling, gazebos and outdoor furniture. This year the team have
found new sourcing partners and identified incremental new categories and
opportunities to expand our range across outdoor rugs, outdoor heating,
internal storage solutions and home décor which are on-trend and deliver
exceptional value to our customers.
Content Marketing
As part of our ongoing commitment to driving growth, we continue to make
significant investments in marketing content across our Group's product
portfolio. This comprehensive approach ensures that we are delivering
high-quality, consistent product content that caters to our breath of
stakeholders, including accounts, partners and our own retail channels. Our
focus is on developing credible and engaging content across multiple formats
visual, motion, and written that effectively showcases our products' strengths
and unique propositions. The positive feedback we have received from our
accounts is a testament to the progress we have made in this area,
highlighting the improvements in both quality and relevance. These
developments will enhance sales conversion rates and our brand visibility
across the markets we serve. As we move into 2025, we are well-positioned to
build on this momentum, further evolving our content strategy to meet
developing market demands and to continue driving sustainable growth across
our business.
Consumer Channels
The Group experienced a 2% increase in revenue from its consumer channels
compared to the previous year. Alongside our own websites Jack Stonehouse,
Electric Life, Tandem Group Cycles, and Ben Sayers we continued to expand our
market presence through third-party marketplace platforms. In addition to
Amazon Seller and eBay, we operate on the platforms of leading retailers such
as B&Q, Tesco, The Range, and Wayfair.
In 2025, we are continuing to identify new strategic opportunities to drive
sales growth and expand our market share through partnerships with additional
platforms. Our customer-centric approach remains a core priority, supported by
dedicated customer service teams committed to delivering exceptional
experiences, evidenced by consistently positive customer review ratings on
Google and Trustpilot.
Sourcing & Logistics
The Hong Kong office remains a vital sourcing hub for the Group, driving
efficiency, cost savings, and product quality. In October 2024 we relocated
our offices to Kowloon East, a dynamic and growing business district, which we
also expected to deliver cost savings over the coming years. The team also
oversees technical and quality control, ensuring that all products meet the
Group's high standards. Strengthening supplier relationships, negotiating
competitive pricing, and optimising logistics, while continuing to enhance
cost efficiencies and supply chain resilience across the Group.
Pension schemes
The Group operates two defined benefit pension schemes with both schemes
closed to new members. There are no active members in either scheme.
The collective deficit of the schemes at 31 December 2024 decreased to
£358,000 compared to £726,000 at 31 December 2023. Gilt yields were higher
at 5.25% (4.8% for 2023) which led to the reduction in the deficit.
The pension schemes continued to utilise the Group's cash resources with
payments in respect of the schemes totalling £526,000 (year ended 31 December
2023 - £723,000). The total comprised deficit contributions of £397,000 and
£nil in respect of the Tandem and Casket schemes respectively (year ended 31
December 2023 - £563,000 and £34,000) and government levies and
administration costs of £129,000 (year ended 31 December 2023 - £126,000).
The latest triennial valuation date for the Tandem scheme was 1 October 2022
and the Casket scheme 5 April 2022, details of which were provided in the 2023
Annual Report.
Colleagues
We currently employ 73 colleagues in the Group who remain our most important
asset. The Group continues to offer a breadth of cost saving solutions for
colleagues and their families, along with access to a discounted range of our
clean energy transportation products.
Annual General Meeting
The 2025 Annual General Meeting will be held on 24 June 2025 at our Castle
Bromwich offices.
Strategy
Our strategic objective is to drive sustained growth across all of our
operating divisions as the sectors continue to evolve, by introducing exciting
new product ranges and expanding our customer base. We are also focused on
further enhancing our direct-to-consumer offering, particularly in the Home
& Garden categories, through improved website marketing, compelling
content, product innovation, and more efficient sourcing. To achieve this, we
will continue to secure high-value licence agreements for leading character
toy licences and develop innovative, high-quality own-brand product ranges
that offer excellent value to consumers, thereby strengthening our market
position.
The Chair's statement on page 2 provides an overview of the current outlook
for the Group in the forthcoming year.
Principal risks and uncertainties
The management of the business and the nature of the Group's strategy are
subject to a number of risks and uncertainties. The principal risks facing the
business are as follows:
Economic conditions
The current economic environment in the UK presents significant challenges,
which could adversely impact the Group's revenue and financial performance.
Suppliers
To maintain competitive pricing, the Group has outsourced production primarily
to Asia. This approach introduces risks, including operational issues at
factories, potential changes in import duties, and the possibility of
increased costs due to freight and shipping delays. The Group mitigates these
risks by maintaining a local office in Hong Kong, where a dedicated team works
closely with suppliers. Additionally, the Group has contingency plans in place
and diversifies its sourcing from Europe to reduce dependency on any single
region.
Fluctuations in currency exchange rates
A substantial portion of the Group's purchases is denominated in US dollars,
exposing the Group to fluctuations in foreign exchange rates. The Group
manages this exposure by utilising forward foreign exchange contracts and has
adopted formal hedge accounting practices. However, if these hedging
activities are insufficient, the Group's financial performance and position
could be negatively affected.
Interest rates
If interest rates increase, this could have an impact on the Group's finance
costs. However, the Group has entered into an interest rate cap mechanism for
£3 million on a depreciating basis of borrowings capped at 2%.
Licences
Several of the Group's brands are licensed from global licensors, typically
under agreements lasting two to three years. If these licences are not
renewed, the Group would secure additional new and on-trend licences to
prevent any reduction in revenue.
Competition
The Group operates in highly competitive markets, leading to constant pressure
on margins and the risk of not meeting customer expectations. To address these
risks, the Group has implemented comprehensive strategies across supply chain
management and product development.
Volatility in financial markets may require further cash contributions to our
pension fund
The Group has commitments under two defined benefit pension schemes. The Group
is obliged to make contributions to the schemes based on actuarial valuations,
which in turn are based on long-term assumptions to calculate scheme
liabilities. Volatility of the financial markets can also affect the value of
the assets in the schemes. This may lead to a requirement to increase the cash
contributed by the Group to the schemes. If the Group is required to make
significant additional contributions, the financial position of the Group may
be materially affected with a significant reduction in operating cash flows.
In turn, this may adversely impact future developments of the business.
Financial risks
The main risks arising from the Group's financial instruments are interest
rates, liquidity, credit and foreign currency. The Board reviews and agrees
policies for managing each of these risks.
P Kimberley
Chief Executive Officer
21 March 2025
Consolidated income statement
31 December 2024 31 December 2023
Note Before non-underlying items Non-underlying items After non-underlying items Before non-underlying items Non- After non-underlying items
£'000 £'000 £'000 £'000 underlying items £'000
£'000
Revenue 3 24,619 - 24,619 22,242 - 22,242
Cost of sales (17,253) - (17,253) (16,242) - (16,242)
Gross profit 7,366 - 7,366 6,000 - 6,000
Operating expenses (6,552) - (6,552) (6,768) - (6,768)
Operating profit/(loss) before exceptional costs 814 - 814 (768) - (768)
Exceptional costs - (409) (409) - (103) (103)
Operating profit/(loss) 814 (409) 405 (768) (103) (871)
Finance costs (304) (71) (375) (254) (73) (327)
Profit/(loss) before taxation 510 (480) 30 (1,022) (176) (1,198)
Tax expense 4 (7) (83) (90) 91 (130) (39)
Net profit/(loss) for the year 503 (563) (60) (931) (306) (1,237)
Loss per share Pence Pence
Basic (1.1) (22.6)
Diluted (1.1) (22.6)
Consolidated statement of comprehensive income
31 December 2024 31 December 2023
£'000 £'000
Net loss for the year (60) (1,237)
Other comprehensive income:
Items that will be reclassified subsequently to profit and loss:
Foreign exchange differences on translation of foreign operations 11 (48)
Cashflow hedging contracts 100 (179)
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on pension schemes 44 (1,190)
Movement in pension schemes' deferred tax provision (11) 3
Other comprehensive profit/ (loss) for the year, net of tax 144 (1,414)
Total comprehensive profit/(expense) for the year attributable to equity 84 (2,651)
shareholders
Consolidated balance sheet
31 December 2024 31 December 2023
£'000 £'000
Non current assets
Intangible fixed assets 5,494 5,527
Property, plant and equipment 14,939 15,404
Deferred taxation 564 663
20,997 21,594
Current assets
Inventories 5,930 5,161
Trade and other receivables 6,376 5,176
Derivative financial asset held at fair value 201 173
Current tax assets 37 10
Cash and cash equivalents 1,385 447
13,929 10,967
Total assets 34,926 32,561
Current liabilities
Trade and other payables (4,945) (3,935)
Borrowings (2,262) (4,015)
Derivative financial liability held at fair value - (74)
Current tax liabilities (1) -
(7,208) (8,024)
Non current liabilities
Borrowings (3,445) -
Pension schemes' deficit (358) (726)
(3,803) (726)
Total liabilities (11,011) (8,750)
Net assets 23,915 23,811
Equity
Share capital 1,503 1,503
Shares held in treasury (135) (135)
Share premium 729 729
Other reserves 7,187 7,076
Profit and loss account 14,631 14,638
Total equity 23,915 23,811
Consolidated statement of changes in equity
Share capital Shares held in treasury Share premium Cash flow hedge reserve Merger reserve Capital redemption reserve Revaluation reserve Translation reserve Profit and loss account Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2023 1,503 (137) 716 279 1,036 1,427 3,860 701 17,403 26,788
Net loss for the year - - - - - - - - (1,237) (1,237)
Re-translation of overseas subsidiaries - - - - - - - (48) - (48)
Forward contracts - - - (179) - - - - - (179)
Net actuarial loss on
pension schemes - - - - - - - - (1,187) (1,187)
Total comprehensive income for the year attributable to equity shareholders - - - (179) - - - (48) (2,424) (2,651)
Exercise of share options - 2 13 - - - - - - 15
Share based payments - - - - - - - - 20 20
Dividends paid - - - - - - - - (361) (361)
Total transactions with owners - 2 13 - - - - - (341) (326)
At 1 January 2024 1,503 (135) 729 100 1,036 1,427 3,860 653 14,638 23,811
Net loss for the year - - - - - - - - (60) (60)
Re-translation of overseas subsidiaries - - - - - - - 11 - 11
Forward contracts - - - 100 - - - - - 100
Net actuarial gain on pension schemes - - - - - - - - 33 33
Total comprehensive income for the year attributable to equity shareholders - - - 100 - - - 11 (27) 84
Share based payments - - - - - - - - 20 20
Total transactions with owners - - - - - - - - 20 20
At 31 December 2024 1,503 (135) 729 200 1,036 1,427 3,860 664 14,631 23,915
Consolidated cash flow statement
31 December 2024 31 December 2023
£'000
£'000
Cash flows from operating activities
Net loss for the year (60) (1,237)
Adjustments:
Depreciation of property, plant and equipment 285 272
Amortisation of intangible fixed assets 33 35
Loss/(profit) on sale of property, plant and equipment 267 (5)
Contribution to defined benefit pension plans (397) (597)
Finance costs 375 327
Tax expense 90 39
Share based payments 19 20
Net cash flow from operating activities before movements in working capital 612 (1,146)
Change in inventories (769) (404)
Change in trade and other receivables (1,200) 1,457
Change in trade and other payables 1,010 (265)
Cash used in from operations (347) (358)
Interest paid (304) (254)
Tax paid (28) (2)
Net cash flows from operating activities (679) (614)
Cash flows from investing activities
Purchases of intangible fixed assets - (37)
Purchases of property, plant and equipment (86) (985)
Sale of property, plant and equipment - 13
Net cash flows from investing activities (86) (1,009)
Cash flows from financing activities
Loan repayments (38) (500)
Movement in invoice financing 1,730 (324)
Exercise of share options - 15
Dividends paid - (361)
Net cash flows from financing activities 1,692 (1,170)
Net change in cash and cash equivalents 927 (2,793)
Cash and cash equivalents at beginning of year 447 3,288
Effect of foreign exchange rate changes 11 (48)
Cash and cash equivalents at end of year 1,385 447
Notes to the results
1. General information
The financial information set out in this announcement does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006. The
Consolidated income statement, the Consolidated statement of comprehensive
income, the Consolidated balance sheet at 31 December 2024, the Consolidated
statement of changes in equity, the Consolidated cash flow statement and the
associated notes for the period then ended have been extracted from the
Group's financial statements upon which the auditor's opinion is unqualified
and does not include any statement under section 498 of the Companies Act
2006. The statutory accounts for the year ended 31 December 2024 will be
delivered to the Registrar of Companies following the Group's Annual General
Meeting.
2. Basis of preparation
The consolidated financial statements of the Group have been prepared under
the historical cost convention and in accordance with UK adopted international
accounting standards. The principal accounting policies adopted by the Group,
which remain unchanged, are set out in the statutory financial statements for
the year ended 31 December 2024.
Non-underlying items
Non-underlying items are material items which arise from unusual non-recurring
or non-trading events. They are disclosed in aggregate in the Consolidated
income statement where in the opinion of the Directors such disclosure is
necessary in order to fairly present the results for the period.
Non-underlying items comprise exceptional costs, the finance cost related to
the Group's pension schemes calculated in accordance with IAS19 and the impact
of the movement of the ineffective proportion of the hedge.
Key areas of estimation uncertainty
Impairment of goodwill
The annual impairment assessment in respect of goodwill requires estimates of
the value in use of cash generating units to which goodwill has been allocated
to be calculated. As a result, estimates of future cash flows are required,
together with an appropriate discount factor for the purpose of determining
the present value of those cash flows.
Financial instruments valuation
Derivatives are used to minimise the impact of foreign exchange and interest
rate fluctuations on the Group. An asset or liability is recognised
representing the fair value of the instruments in place at the year end. The
fair value is calculated using certain estimates and valuation models by
reference to significant inputs including; implied volatilities in foreign
currency and interest rates and historical movements in foreign currency
exchange and interest rates.
Pension scheme valuation
The liabilities in respect of defined benefit pension schemes are calculated
by qualified actuaries and reviewed by the Group, but are necessarily based on
subjective assumptions. The principal uncertainties relate to the estimation
of the discount rate, life expectancies of scheme members, future investment
yields and general market conditions for factors such as inflation and
interest rates. Profits and losses in relation to changes in actuarial
assumptions are taken directly to reserves and therefore do not impact on the
profitability of the business, but the changes do impact on net assets.
Inventory provisioning
The Group reviews the net realisable value of and demand for its inventory on
an ongoing basis to ensure recorded inventory is stated at the lower of cost
or net realisable value. Factors that could impact estimated demand and
selling prices are the timing and success of future technological innovations,
competitor actions, suppliers prices and economic trends. If total inventory
losses differ, the Group's consolidated net income in the year would have
improved or declined, depending upon whether the actual results were better or
worse than expected.
Bad debt provision
At each reporting period, the Directors review outstanding debts and determine
appropriate provision levels. The recovery of certain debts is dependent on
the individual circumstances of customers. At the year end there are a
number of debts which remain outstanding past their due date, which the
Directors believe to be recoverable.
Intangible asset valuation
In attributing value to intangible assets arising on acquisition, management
has made certain assumptions in terms of cash flows attributable to
intellectual property and customer relationships. The key assumptions relate
to the trading performance of the acquired business, royalty rates applied in
the royalty relief calculation and discount rates applied to calculate the
present value of future cash flows. The Directors consider the resulting
valuation to be a reasonable approximation as to the value of the intangibles
acquired.
Freehold property revaluation
In ascertaining an accurate estimate of the value of freehold property, the
Directors utilise the latest professional valuation conducted along with
available information on local property value movements since the valuation
date.
Key judgements
Going Concern
The financial statements are prepared on the going concern basis.
The Group has cash reserves and finance facilities available and the Board
continually monitor a rolling cashflow forecast for the business as a whole.
Given the Group's low fixed cost base and the facilities available to it, the
Board therefore considers the Group will continue to be able to meet its
liabilities as they fall due.
On that basis, the Directors are confident that they will be able to manage
the business in such a way that it will continue to operate and trade for at
least 12 months from the date of the signing of the financial statements and
have therefore prepared these financial statements on a going concern basis.
Deferred tax assets
In determining the deferred tax asset to be recognised the Directors carefully
review the recoverability of these assets on a prudent basis and reach a
judgement based on the best available information. Estimates and judgements
used in the financial statements are based on historical experience and other
assumptions that the Directors and management consider reasonable and are
consistent with the Group's latest budgeted forecasts where applicable.
Judgements are based on the information available at each balance sheet
date. Although these estimates are based on the best information available
to the Directors, actual results may ultimately differ from those
estimates.
Cash flow hedging
In determining the proportion of forward foreign exchange contracts that are
effective hedges against currency fluctuations, the Directors produce detailed
forward forecasts to carefully determine the requirements of a particular
foreign currency to match future planned supplier payments.
In determining the proportion of the interest rate hedge contracts that are
effective against base interest rate fluctuations, the Directors measure the
level of borrowing against the remaining value of the contracts.
3. Segmental analysis
Due to the integration of a number of functions across the Group it is not
possible to accurately report operating segments in full, turnover has been
analysed into four key segments being Toys, Sports & Leisure, Bikes,
including Electric, Golf and Home & Garden.
2024 2023
(£000s) (£000s)
Toys, Sports & Leisure 12,362 10,369
Bicycles, including electric 7,380 6,630
Golf 2,548 2,261
Home & Garden 2,329 2,982
24,619 22,242
The turnover by geographical destination is detailed below.
2024 2023
(£000s) (£000s)
UK 22,547 20,451
Europe 2,050 1,728
Rest of World 22 63
24,619 22,242
4. Loss per share
The calculation of loss per share is based on the net loss and ordinary shares
in issue during the year as follows:
31 December 2024 31 December 2023
£'000 £'000
Net loss for the year (60) (1,237)
Weighted average shares in issue (excluding shares held in treasury) used for 5,471,959 5,470,829
basic earnings per share
Weighted average dilutive shares under option 15,440 41,217
Average number of shares used for diluted earnings per share 5,487,399 5,512,046
Pence Pence
Basic Loss per share (1.1) (22.6)
The impact on the loss per share of the share options for the year ended 31
December 2024 and 31 December 2023 is anti-dilutive.
5. Dividend
Due to the current year results, no final dividend will be paid for the year
ended 31 December 2024 (year ended 31 December 2023 - Nil).
6. Annual report and accounts and final results presentation
The annual report and accounts will be posted to shareholders shortly and,
along with the final results presentation, will be available on the Company's
website, www.tandemgroup.co.uk (http://www.tandemgroup.co.uk) .
7. Annual General Meeting
The Annual General Meeting will be held at 11:00 on 24 June 2025 at 35
Tameside Drive, Castle Bromwich, Birmingham, B35 7AG.
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
Forward-Looking Statements
Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders and
prospective security holders not to place undue reliance on these
forward-looking statements, which reflect the view of the Company only as of
the date of this announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the statements are
made. The Company will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.
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