Manufacturer’s shares rise 35%
Shares in Tandem Group enjoyed their best day in five years, rising 35% on the back of an upbeat trading update.
The Birmingham-based manufacturer of sports equipment and toys has bounced back from the impact of the Toys R Us.
Although 2018 revenue was down 12% to £32.5m, it said pre-tax profit would be “only marginally behind” 2017, when it made £1.89m.
It was a positive update, given the 30% drop in revenues it had previously reported for the first six months of 2018.
Its shares closed at 155p last night, returning it to the levels seen last June.
Tandem Group has extended its portfolio of licenses with The Walt Disney Company, expanding its range of Disney and Marvel products which now includes Frozen, Toy Story, Spider-Man, Lion King, Disney Princess and Avengers.
In a statement, it said: “We are optimistic about the outlook for 2019. Whilst we are mindful of macro-economic uncertainties, we expect to achieve significant turnover growth and we continue to be extremely confident in our ability to deliver profitability to our shareholders.”
Last June it revealed sales were down 30% year-on-year because of the demise of Toys R Us and other customers carrying forward stock.
Its share price fell, and at Friday’s close of 110p remained 30% below its high of last June.
However the business is much more positive about its prospects for 2019.
It said: “The year has started very strongly for the Group, principally driven by the MV Sports & Leisure business where the forward order book is considerably ahead of the same time last year.
“We have secured additional business with several national retailers and expect to increase revenue, based on current listings, with a number of others.”
