REG - Tandem Grp PLC - Interim Results
26/09/2025 07:00
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RNS Number : 9209A Tandem Group PLC 26 September 2025
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (as amended), which forms part of domestic UK law
pursuant to the European Union (Withdrawal) Act 2018. Upon publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
Tandem Group plc
(the 'Company' or 'Group')
Interim Results
Increased revenues and profitability and reduction in net debt
Trading in line with market expectations
Tandem Group plc (AIM: TND), designers, developers, distributors and retailers
of sports, leisure and mobility equipment, announces its unaudited interim
results for the six months ended 30 June 2025 ("H1 2025").
Summary
· Group revenue increased 14.3% to £11.2 million (H1 2024: £9.8
million)
· 21.4% increase in gross profit to £3.4 million (H1 2024: £2.8
million), with an increase in gross margin, to 30.9% (H1 2024: 28.8%),
primarily due to strong inventory management, cost reductions and foreign
exchange movements during the period.
· Adjusted EBITDA ((1)) profit of £81k (H1 2024: loss of £248k)
· Loss before Interest and taxation of £167k (H1 2024: loss of £405k)
· Ongoing emphasis on inventory optimisation to drive profitability
· Net assets at 30 June 2025 remained at £23.3 million (H1 2024:
£23.3m)
· Net debt as at 30 June 2025 reduced by 17.9% to £3.2 million (30
June 2024: £3.9 million)
· July and August 2025 has shown a growth in sales, with sales year to
date +11% ahead year on year
· Trading for the full year in line with market expectations
· The Board will propose the resumption of dividend payments when the
Group's profits permit in the future
((1)) Adjusted EBITDA is defined as earnings before interest, taxation,
depreciation, amortisation and exceptional costs
Enquiries:
Tandem Group plc
Peter Kimberley, CEO
Gurvinder Kaur, CFO and Company Secretary
Telephone 0121 748 8030
Cavendish Capital Markets Limited (Nominated Adviser and Broker)
Ben Jeynes / Callum Davidson - Corporate Finance
Michael Johnson / Matt Lewis - Sales and Equity Capital Markets
Telephone 0207 220 0500
Chairmans Statement
The Group has continued to navigate a trading landscape defined by ongoing
macroeconomic changes and shifts in consumer behaviour. While reduced interest
rates, favourable weather and foreign exchange rates have positively benefited
our customers and consumers, other pressures remain with unemployment
currently running at a 4-year high and store closures are predicted to be the
highest since pre-covid by the end of 2025. Employer costs have also
increased, with energy prices still rising and increased National Insurance
contributions from April this year. International shipping rates though,
remain low and have remained consistent, providing necessary stability.
Diversification remains central to our strategy. We have broadened our product
portfolio, introduced innovative new ranges, and expanded our licensing
partnerships, while strengthening our own-label capabilities across Toys,
Golf, Cycling and Home & Garden. Seasonal demand benefited from more
favourable weather in late spring and summer, helping to underpin performance
in a number of our core categories.
A disciplined focus on inventory management, rigorous cost control, better
buying and reduced reliance on clearance activity have enabled us to safeguard
and expand margins and have resulted in the Group delivering a resilient
performance. Together with a continued pipeline of product innovation, this
demonstrates the robustness of our strategy and provides a strong platform for
sustainable long-term growth.
Financial Highlights
Group revenue in the six months ended 30 June 2025 was ahead by 14.3% at
£11.2m vs £9.8m for the same period last year.
There was an increase of 21.4% in gross profit from £2.8 million to £3.4
million. Gross profit margin increased to 30.9% versus 28.8% in the prior
period last year, primarily due to favourable foreign exchange variances and
improved product margins.
Operating expenses increased from £3.2m to £3.5m. This was primarily due to
the benefit of the rates credit in 2024, increased salary cost due to the
increase in employers NI and additional expenditure in advertising to support
the increase in sales.
As a result of the above, the Group recognised an operating loss before
exceptional expenses of £80,000 compared to a loss of £405,000 in the
previous year.
Adjusted EBITDA profit was £81,000 for H1 2025, compared to a loss of
£248,000 in the prior year.
Cash and cash equivalents were £396,000 at 30 June 2025 which compared to
£805,000 at 30 June 2024. However, net debt dropped from £3.9 million at 30
June 2024 to £3.2 million at 30 June 2025.
Net assets at 30 June 2025 remain at £23.3 million.
Trading Update and Outlook
Consumer confidence remains subdued (index -18 ((2))) against a backdrop of
increasing levels of unemployment, rising business costs, and continued
cost-of-living pressures. Encouragingly, interest rates have lowered, and
shipping rates have stabilised. We are currently cautiously optimistic about
an improvement in conditions through the remainder of 2025 and beyond.
Newness and innovation remain key drivers of growth. In H1, we launched 165
new products. A further 48 new products are scheduled for H2, bringing the
total to 213 new launches in 2025.
Our sourcing strategy continues to strengthen, reducing costs and lead times
through closer collaboration with suppliers and logistics partners. The
relocation of our Hong Kong office in October 2024 is already delivering
tangible cost efficiencies.
Toy Sports & Leisure (TSL)
For the Group, outdoor toy sales were -3% vs last year (YTD Aug -8%). Although
some retailers have reported growth in H1 2025, this was due to sell through
of stock that had previously been purchased in 2024 as excess stock holdings
at the end of the year built due to poorer weather. Improved weather in late
spring and early summer this year, supported by promotional activity, drove
stronger sell-through in the market. Therefore, newer purchases are now being
ordered by customers and supports a more positive outlook for H2 and beyond.
We continue to innovate and develop our product portfolio, with 25 new
products delivered in H1, together with two new exciting licenses, Dora and
Paw Patrol 3. Key licensed brands including Bluey, Hot Wheels, Disney, Peppa
Pig and Paw Patrol continue to perform strongly, enhancing both revenues and
brand equity.
Bikes
The UK cycling market remains competitive, with deep discounting as
competitors clear legacy stock. Against this backdrop, Group bike sales grew
+50% vs last year (YTD Aug: +38%), supported by favourable weather and the
launch of refreshed products.
Our Squish brand, named 2024 BikeBiz Brand of the Year, delivered sales of
+64% vs last year (YTD Aug +42%). Junior bikes will be further strengthened in
H2 with the launch of Hoy Bikes, in partnership with Sir Chris Hoy, with over
100 dealers already onboarded.
Electric bikes remain a core growth driver, with four new models launched in
H1, taking our sub-£2,000 range to 19 models. Own-brand electric bike sales
grew 60% vs last year (YTD Aug +44%) and now account for two-thirds of the
category. Further expansion will include introducing Brompton to our D2C
channel in H2.
Golf
Golf sales in H1 were -3% vs last year (YTD Aug +3%), reflecting a later
phasing of Freight-On-Board orders compared to 2024.
Our Ben Sayers brand continues to win share with new package sets and bags
generating strong forward orders. Pro Rider sales grew +4%, driven by
refreshed colours of our electric trolleys.
Home & Garden (HMGD)
Exceptionally hot weather and prolonged sunshine have significantly boosted
trading, with sales at +16% vs last year (YTD Aug +33%). The warmest spring
and summer on record accelerated demand for cooling solutions, awnings, and
parasols.
We launched over 65 new SKUs, broadening our range with new categories such as
outdoor heating, outdoor rugs, internal storage, and home décor, all of which
have been well received.
We have introduced nine further products within our indoor and outdoor heating
ranges in H2, alongside additional SKUs in outdoor storage. These will be
available across the Jack Stonehouse website and marketplaces, positioning us
strongly for the remainder of the year.
Online, marketplaces and direct to consumer
As part of the Group's direct-to-consumer growth strategy, Jack Stonehouse has
delivered sales of +68% vs H1 2024 (YTD Aug +75%). Marketplaces also performed
well, delivering +5% vs H1 2024 (YTD Aug +18%) revenue growth compared to the
prior year.
While website traffic was broadly in line with the first half of 2024,
improved product mix and more efficient marketing drove stronger conversion
and higher customer spend. Transactions increased 52% year-on-year,
accompanied by growth in average order value, with customers purchasing more
items per order or opting for higher-value products. Customer confidence in
the brand also strengthened, reflected in our continued 'Excellent' rating on
Trustpilot, underpinned by an increasing volume of positive reviews.
Colleagues and year end outlook
We are pleased with the progress achieved in H1, with increased
diversification and resilience. The Group is now strengthened and better
positioned for the future. Our colleagues remain the cornerstone of our
success. Their commitment, expertise, and energy continue to power growth and
innovation across the Group.
As a result, the Board remains confident in the Group delivering full year
performance in line with current market expectations.
The Group's financial position remains robust, underpinned by a strong balance
sheet and substantial property assets. Solid cash reserves ensure financial
flexibility, providing confidence in our ability to deliver on both current
and future opportunities.
Looking ahead, we remain resolutely focused on our strategic priorities,
disciplined growth, operational efficiency, and continuous innovation. While
headwinds persist, we see significant opportunities to strengthen our market
position and deliver sustainable long-term value for all stakeholders.
Dividend
In light of H1 performance and full-year expectations, the Board is not
proposing an interim dividend. We continue to review our dividend strategy and
remain committed to reinstating dividends when profits permit.
Investor Presentation
The interim results presentation will be available on the Company's website in
due course. Shareholders with questions are encouraged to contact the Company
via investorrelations@tandemgroup.co.uk
(mailto:investorrelations@tandemgroup.co.uk) or through our Nominated
Advisors.
((2)) Source: GfK Consumer Confidence June 2025
Steve Grant
Chairman
26 September 2025
CONDENSED CONSOLIDATED INCOME STATEMENT
For the 6 months ended 30 June 2025
6 months ended 6 months ended Year ended 31 December 2024
30 June 2025 30 June 2024 Audited
Unaudited Unaudited £'000
£'000 £'000
Note
Revenue 11,175 9,787 24,619
Cost of sales (7,726) (6,969) (17,253)
Gross profit 3,449 2,818 7,366
Operating expenses (3,529) (3,223) (6,552)
Operating (loss)/profit before exceptional costs (80) (405) 814
Exceptional costs 1 (87) - (409)
Operating (loss)/profit after exceptional costs (167) (405) 405
Finance costs (211) (201) (375)
(Loss)/profit before taxation (378) (606) 30
Tax expense - (1) (90)
Net loss for the period (378) (607) (60)
Pence Pence Pence
Loss per share
Basic 2 (6.9) (11.1) (1.1)
Diluted 2 (6.9) (11.1) (1.1)
(#_ftn1)
All figures relate to continuing operations.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 30 June 2025
6 months 6 months Year ended 31 December
ended ended 2024
30 June 2025 30 June 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss for the period (378) (607) (60)
Other comprehensive income:
Items that will be reclassified subsequently to profit and loss: (80) 6 11
Foreign exchange differences on translation of overseas subsidiaries
Cashflow hedging contracts (185) 88 100
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on pension schemes - - 44
Movement in pension schemes' deferred tax provision - - (11)
Other comprehensive (loss)/profit for the period, net of tax (265) 94 144
Total comprehensive (expense)/profit attributable to equity shareholders of (643) (513) 84
Tandem Group plc
All figures relate to continuing operations.
CONDENSED CONSOLIDATED BALANCE SHEET
As at 30 June 2025
At 30 June At 30 June At 31
2025 2024 December
2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Non current assets
Intangible fixed assets 5,489 5,523 5,494
Property, plant and equipment 14,788 15,268 14,939
Deferred taxation 563 663 564
20,840 21,454 20,997
Current assets
Inventories 6,128 5,943 5,930
Trade and other receivables 5,069 5,659 6,376
Derivative financial asset held at fair value 102 189 201
Current tax Assets 9 10 37
Cash and cash equivalents 396 805 1,385
11,704 12,606 13,929
Total assets 32,544 34,060 34,926
Current liabilities
Trade and other payables -5,339 -5,428 -4,945
Borrowings 3 -297 -1,113 -2,262
Derivative financial liability held at fair value -86 - -
Current tax Liabilities - - -1
-5,722 -6,541 -7,208
Non current liabilities
Borrowings 3 -3,330 -3,623 -3,445
Pension schemes' deficits -147 -584 -358
-3,477 -4,207 -3,803
Total liabilities -9,199 -10,748 -11,011
Net assets 23,345 23,312 23,915
Equity
Share capital 1,503 1,503 1,503
Shares held in treasury -122 -135 -135
Share premium 773 729 729
Other reserves 6,922 7,170 7,187
Profit and loss account 14,269 14,045 14,631
Total equity 23,345 23,312 23,915
CONDENSED Consolidated statement of changes in equity
As at 30 June 2025
Merger reserve Translation Profit Total
Share Cash flow hedge reserve reserve and loss
capital Shares held in treasury Capital redemption reserve account
Share premium Revaluation reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 1,503 (135) 729 100 1,036 1,427 3,860 653 14,638 23,811
Net loss for the period - - - - - - - - (607) (607)
Retranslation of overseas subsidiaries - - - - - - - 6 - 6
Forward contracts - - - 14 - - - - - 14
Total comprehensive income for period attributable to equity shareholders - - - 14 - - - 6 (607) (587)
Share based payments - - - - - - 14 14
- -
Reclassify to cost of inventory - - - 74 - - - 74
- -
Total transactions with owners - - - 74 - - - - 14 88
At 30 June 2024 1,503 (135) 729 188 1,036 1,427 3,860 659 14,045 23,312
Net loss for the period - - - - - - - - 547 547
Retranslation of overseas subsidiaries - - - - - - - 5 - 5
Forward contracts - - - 12 - - - - - 12
Net actuarial gain on pension schemes - - - - - - - - 33 33
Total comprehensive income for period attributable to equity shareholders - - - 12 - - - 5 580 597
Share based payments - - - - - - - - 6 6
Total transactions with owners - - - - - - - - 6 6
At 1 January 2025 1,503 (135) 729 200 1,036 1,427 3,860 664 14,631 23,915
Net loss for the period - - - - - - - (378) (378)
Retranslation of overseas subsidiaries - - - - - - - (80) - (80)
Forward contracts - - - (185) - - - - - (185)
Total comprehensive income for period attributable to equity shareholders - - - (185) - - - (80) (378) (643)
Share based payments - - - - - - - 16 16
Exercise of share options 13 44 57
Total transactions with owners - 13 44 - - - - - 16 73
At 30 June 2025 1,503 (122) 773 15 1,036 1,427 3,860 584 14,269 23,345
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 June 2025
30 June 30 June 31
2025 2024 December
2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Loss for the period (378) (607) (60)
Adjustments:
Depreciation of property, plant and equipment 155 146 285
Amortisation of intangible fixed assets 6 4 33
Loss on sale of property, plant and equipment - 7 267
Contributions to defined benefit pension schemes (211) (195) (397)
Finance costs 211 201 375
Tax expense - 1 90
Share based payments 16 14 19
Net cash flow from operating activities before movements in working capital (201) (429) 612
Change in inventories (198) (782) (769)
Change in trade and other receivables 1,307 (483) (1,200)
Change in trade and other payables 395 1,493 1,010
Cash flows from operations 1,303 (201) (347)
Interest paid (211) (152) (304)
Tax received/(paid) 26 - (28)
Net cash flow from operating activities 1,117 (353) (679)
Cash flows from investing activities
Purchase of property, plant and equipment (4) (16) (86)
Net cash flow from investing activities (4) (16) (86)
Cash flows from financing activities
Net (loan repayments)/new loans (117) 71 (38)
Movement in invoice financing (1,963) 650 1,730
Exercise of share options 57 - -
Net cash flow from financing activities (2,023) 721 1,692
Net change in cash and cash equivalents (909) 352 927
Cash and cash equivalents at beginning of period 1,385 447 447
Effect of foreign exchange rate changes (80) 6 11
Cash and cash equivalents at end of period 396 805 1,385
NOTES TO THE HALF YEARLY REPORT
1 General information
Tandem Group plc is a public limited company incorporated and domiciled in the
United Kingdom with its shares admitted to trading on AIM, the market of that
name operated by the London Stock Exchange.
The principal activity of the Group is the design, development, distribution
and retail of sports, leisure and mobility equipment.
The ultimate parent company of the Group is Tandem Group plc whose principal
place of business and registered office address is 35 Tameside Drive, Castle
Bromwich, Birmingham,
B35 7AG.
The interim financial statements for the period ended 30 June 2025 (including
the comparatives for the period ended 30 June 2024 and the year ended 31
December 2024) were approved by the Board of Directors on 25 September 2025.
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 31 December 2024,
prepared under International Financial Reporting Standards ("IFRS"), have been
filed with the Registrar of Companies. The auditor's report on those
financial statements was unqualified and did not contain statements under
Sections 498(2) and 498(3) of the Companies Act 2006.
This interim financial information has been prepared using the accounting
policies set out in the Group's 2024 statutory accounts. Copies of the
annual statutory accounts and the interim report may be obtained by writing to
the Company Secretary of Tandem Group plc, 35 Tameside Drive, Castle Bromwich,
Birmingham, B35 7AG and can be found on the Company's website at
www.tandemgroup.co.uk (http://www.tandemgroup.co.uk) .
Exceptional costs of £87,000 (six months ended 30 June 2024 £nil and year
ended 31 December 2024 £409,000) are in respect of employment costs relating
to the retirement of the commercial director, for whom a replacement was on
board in July 2024. In the year ended 31 December 2024 they are in respect of
employment costs relating to the planned retirement of the commercial
director, for whom a replacement was on board 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.
The net retirement benefit obligation recognised at 30 June 2025 is based on
the actuarial valuation under IAS19 at 31 December 2024 updated for movements
in net defined benefit pension income and contributions paid during the half
year period. A full valuation for IAS19 financial reporting purposes will be
carried out for incorporation in the audited financial statements for the year
ending 31 December 2025.
2 LOSS per share
The calculation of loss per share is based on the net result and ordinary
shares in issue during the period as follows:
6 months 6 months Year
ended ended ended 31 December
30 June 2025 30 June 2024 2024
£'000 £'000 £'000
Loss for the period (378) (607) (60)
Number Number Number
Weighted average shares in issue used for basic earnings per share 5,517,707 5,471,959 5,471,959
Weighted average dilutive shares under option 17,161 17,256 15,440
Average number of shares used for diluted earnings per share 5,534,868 5,489,215 5,487,399
Pence Pence Pence
Basic loss per share (6.9) (11.1) (1.1)
Diluted loss per share (6.9) (11.1) (1.1)
Loss per share is calculated based on the share capital of Tandem Group plc
and the earnings of the Group for all periods. There are options in place at
30 June 2025. The impact on the loss per share for all periods is
anti-dilutive.
3 Borrowings
At 30 June At 30 June At 31
2025 2024 December
2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Invoice finance liability (19) (902) (1,982)
Current borrowings maturing in less than one year
-other borrowings (278) (211) (280)
Total current borrowings (297) (1,113) (2,262)
Non current borrowings with contractual maturities between two and five years
-other borrowings (3,330) (3,623) (3,445)
Total non current borrowings (3,330) (3,623) (3,445)
Total borrowings (3,627) (4,736) (5,707)
(#_ftnref1)
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