REG - Tandem Grp PLC - Trading Update and Notice of Results

TandemAnnouncement

05/02/2025 07:00

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RNS Number : 9081V  Tandem Group PLC  05 February 2025

 
 
5 February 2025

 

 
Tandem Group plc

(the 'Company' and together with its subsidiaries the 'Group')

 

Trading Update and Notice of Results

 

 

11% growth in FY24 revenues and return to Group profitability

 

 

Tandem Group plc (AIM: TND) designers, developers, distributors and retailers
of sports, leisure and e-mobility, provides the following trading update and
confirms that its annual results for the year ended 31 December 2024 (the
"period" or "FY24") will be announced on 24 March 2025.

 

Trading and operations update

 

As reported in the Company's interim results on 20 September 2024, first-half
revenue remained stable compared to the equivalent period in the previous
year, reflecting the ongoing challenges within the consumer sector and broader
economic environment. A stronger second half of the financial year drove an
improvement, resulting in unaudited FY24 revenue of £24.6 million,
representing an 11% increase year-on-year. This performance highlights the
Company's adaptability and growth despite external pressures.

 

Amid ongoing challenges in the consumer sector, compounded by broader economic
pressures and political uncertainty in the UK, the market came under
additional strain due to elevated shipping rates and delays in the Suez Canal.
These factors further suppressed already subdued consumer spending in the
domestic market.

 

The Board is pleased that the Group has returned to profitability in FY24 and
remains confident that profit before tax and exceptionals (including the
non-cash impairment of legacy IT systems), subject to audit, will be in line
with market expectations. This performance reflects disciplined execution,
cost controls, and operational resilience, maintaining profitability in a
challenging environment and underscoring the strength of the Company's
business model.

 

Toys, Sports, and Leisure (TSL)

The TSL business, including character-licensed wheeled toys and in-house
sports and leisure products, performed strongly, contributing significantly to
Group performance. Revenue increased by 20% year-on-year, driven by an 18%
growth in licensed product sales and a 26% increase in own-label products.

 

In FY24 we observed a reversal in the trend we had seen on Freight on Board
(FOB) sales in the previous year, with growth of 14%. Domestic sales also grew
23% year-on-year by securing seven new national accounts in the period,
driving revenue growth and market penetration.

 

Bicycles

Bicycle sales, including electric bikes, finished 11% ahead of the previous
year, outperforming broader sector challenges. Sales of electric bikes saw a
comparative decline of 8%, however, this was more than offset with 39% revenue
growth in mechanical bikes.

 

Sales of premium Squish bikes surged by 69% year-on-year, reflecting robust
consumer demand and the brand's growing reputation. This momentum was boosted
by the brand's recognition as 'Bike Brand of the Year', increasing visibility
and customer confidence.

 

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 offset by exceptional growth in the Pro Rider range. Our focus on
product development within the Pro Rider portfolio drove more than two-fold
revenue growth, highlighting the success of our innovation-led approach.

 

 

Home & Garden

Home and Garden revenue finished 22% behind the prior year, mainly due to
adverse weather conditions throughout the period. Unfavourable weather during
key outdoor periods, such as Easter and the Summer School holidays, affected
outdoor categories. Products like cooling systems, gazebos, outdoor furniture,
and parasols experienced significant declines in demand. However, heating and
home products partially offset this decrease, as increased volume in these
categories helped to soften the impact. Short bursts of extreme weather have
helped with the heating and cooling categories.

 

 

Outlook

 

Early indicators from retailers in January 2025 align with management
expectations and the addition of new national retailer accounts is expanding
the Group's market presence and positioning it for sustainable growth. As a
result, confidence in the Group's strategy for the year ahead and beyond
remains, with management is targeting growth in revenues in FY25 in line with
that seen in FY24, with resultant improvements in profitability.

 

To improve operational efficiency and profitability, we have undertaken
strategic optimisation initiatives in Hong Kong. This includes relocating the
Group's offices, modernising our showroom, and achieving an annual cost
reduction in this location, positively impacting profitability as well as the
customer experience.

 

Innovation remains a key strategic priority across the Group's divisions for
FY25, with efforts centred on developing new products, introducing enhanced
features, designing new electric and mechanical bikes, and advancing Home and
Garden product development. Our commitment to innovation, newness,
international sales, exciting new licenses and new distribution partnerships
will further enhance growth in FY25 and FY26.

 

The Group heads into 2025 with a strong balance sheet and well-managed stock,
well positioned for the year ahead, with planned new partnerships with
retailers and independent accounts, major operational improvements, and
opportunities for international growth. Our commitment to progress and
adaptability remains a focus to delivering lasting value to our shareholders.

 

 

Notice of results

The Group expects to publish its FY24 results on 24 March 2025.

 

A final results presentation will be available on the website after the
results are published at www.tandemgroupplc.co.uk/investor-presentations.
Investors with questions are asked to email the Company at
investorrelations@tandemgroupplc.co.uk
(mailto:investorrelations@tandemgroupplc.co.uk)

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company take responsibility
for this announcement.

 

Enquiries:

Tandem Group plc

Peter Kimberley, Chief Executive Officer

Gurvinder Kaur, Chief Financial Officer

Telephone 0121 748 8075

 

Nominated Adviser

Cavendish Capital Markets Limited (Nominated Adviser and Broker)

Ben Jeynes / Dan Hodkinson - Corporate Finance

Michael Johnson / Charlie Combe - Sales and Equity Capital Markets

Telephone 0207 220 0500

 

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
Company's or any third party's ability to execute and implement future plans,
and the occurrence of unexpected events. Actual results achieved may vary from
the information provided herein as a result of numerous known and unknown
risks and uncertainties and other factors.

 

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