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TND - Tandem News Story

388p 3.0  0.8%

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Consumer Cyclicals
Micro Cap
Market Cap £19.4m
Enterprise Value £17.5m
Revenue £38.8m
Position in Universe 1380th / 1807

Tandem Grp PLC Trading Update

Fri 3rd September, 2010 7:00am

RNS Number : 0901S
Tandem Group PLC
03 September 2010

Tandem Group plc
(the 'Company')


Tandem Group plc (AIM: TND), designers, developers and distributors of sports
and leisure equipment, is pleased to announce a trading update ahead of its
interim results for the 6 month period ended 31 July 2010 which are due to be
announced in October 2010.

Trading update

For the 6 month period ended 31 July 2010 turnover was approximately GBP19
million compared with GBP18.9 million in the prior period despite turnover from
a bicycle promotional contract with a national retailer being GBP1.4 million
lower than in the comparative period.

Revenue from our Dawes cycle business showed exceptional growth, well ahead of
market performance.

The sports, leisure and toys business increased turnover by approximately 18% in
the period with encouraging results from new product ranges.

In spite of US dollar volatility, increases in freight and raw material prices,
shipping line disruptions and Far East labour shortages we expect the profit
before tax for the half year to be ahead of last year.


Although national retailers continue with a cautious buying strategy, reaction
to the launches of their Autumn/Winter catalogues has been very encouraging with
increased orders placed within the last fortnight.

Improved Spring/Summer 2011 catalogue listings have been finalised during August
and the sales order books in both bicycles & accessories and sports, leisure &
toy businesses continue to grow.

Increasing demand for bicycles, particularly the flagship brands of Claud Butler
and Dawes, is encouraging.

Despite the fears that Toy Story merchandise would saturate the market for
Autumn/Winter 2010 following the movie release, revenue from our licensed
properties, including Ben 10 wheeled toys, is likely to exceed our earlier

Furthermore, following the appointment of the Administrator to Martin Yaffe
International Limited the Company announces that it has now reached agreement
with the licensor and the Administrator to distribute the Waybuloo wheeled toy
license with immediate effect enabling us to support national retailers' current

Consequently, the Board currently expects to achieve a result for the year ended
31 January 2011 well ahead of market expectations.

Strategic review

Following the Board changes reported in June 2010 the executive management team
have undertaken a detailed review of the Company's strategy. The purpose of the
review was to ensure the Board continues to develop and implement strategies
which focus on its principle objective to enhance shareholder value.

An overview of the strategy will be outlined during the presentation to
investors to be held, as previously announced, at the offices of Grant Thornton,
30 Finsbury Square, London EC2P 2YU, the Company's auditors at 10.00 am on
Tuesday 7 September 2010. The document will also be available on the Company's
website shortly before the presentation.

Those wishing to attend the investor presentation should email our Nominated
Adviser (tony.rawlinson@cairnfin.com) or telephone 020 7148 7901 to confirm

Dividend declaration

In light of the above and following a review of the dividend strategy, the
Company is also expecting to be able to announce that an interim dividend will
be paid.

Tandem Group plc
Steve Grant, Chief Executive
Jim Shears, Group Finance Director and Company Secretary
Telephone 0121 748 8075

Nominated Adviser
Cairn Financial Advisers
Tony Rawlinson
Telephone 020 7148 7901

This information is provided by RNS
The company news service from the London Stock Exchange


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