REG - Tandem Grp PLC - Trading Update

TandemAnnouncement

07/12/2021 07:00

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RNS Number : 7509U  Tandem Group PLC  07 December 2021

Tandem Group plc

(the "Company" or "Group")

 

TRADING UPDATE

 

Tandem Group plc (AIM: TND), designers, developers, distributors and retailers
of sports, leisure and mobility equipment, announces a trading update to 30
November 2021.

 

Trading and operations

In our interim results announcement in September 2021 we reported that revenue
to 30 June 2021 was approximately 14% ahead of the same period in the previous
year.  This position improved in quarter three to 30 September 2021 with
revenues 17% ahead of the prior year.  Quarter four to 30 November 2021 has
since seen revenues broadly flat across the Group when compared to the first
two months of quarter four 2020, principally as a result of the comparative
period in 2020 being particularly strong.

 

Quarter four 2021 to date has seen a robust performance from our toys, sports
& leisure business with a number of licences including Peppa Pig, Paw
Patrol, Spider-Man and Batman ahead of the prior year.  Disney Princess,
Barbie and Nerf have also grown strongly and our own brands, including
Stunted, Hedstrom, Kickmaster and uMoVe were all ahead of the prior year.

 

In addition, Ben Sayers continued to show significant growth compared to the
comparative period.

 

Stock availability in our bicycles business has, as was anticipated, improved
and this has resulted in more despatches and increased bicycles revenue in
November compared to September and October.  Demand for our lightweight
Squish branded children's range remains very strong.

 

In our e-mobility business, our Wired range of e-scooters performed very
strongly, supported by our Li-Fe brand and range of e-bikes utilising the
Dawes, Falcon and Claud Butler brands.  We expect that this category will
continue to expand in 2022 and we have therefore invested additional resource
and capacity to facilitate the anticipated growth.

 

As is seasonally typical, our home & garden products business, which is
mostly sold from our online platforms, has been under greater pressure as we
move out of the traditional garden season, although we have seen a good
performance from heating products and other indoor homewares.

 

As previously reported, increases in input costs, shipping and transport rates
and adverse currency movements have placed pressure on gross profit margins in
2021 year to date.  Notwithstanding these challenges, margins have held up
well and we are beginning to see some early indications of improvements in
costs, particularly with regards to freight.

 

Overheads remain tightly controlled and within our expectations, and as a
result we expect profitability for the full year to be in line with or
slightly ahead of current market expectations and we look forward to updating
shareholders further in January 2022, following the Christmas trading period.

 

Property

Our warehouse project continues to progress well.  The site has been cleared,
main contractor appointed, certain materials ordered and work scheduled.  We
have addressed the pre-commencement planning conditions in advance of planning
consent and we expect to receive formal planning permission shortly.

 

 

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

Jim Shears, CEO

David Rock, Company Secretary

Telephone 0121 748 8075

 

Nominated Adviser

Cenkos Securities plc (Nominated Adviser and Broker)

Ben Jeynes / Dan Hodkinson - Corporate Finance

Michael Johnson / Russell Kerr - Sales

Telephone 020 7397 8900

 

 

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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