Revenues fall but profits are up at Tandem
REVENUES took a slight tumble but pre-tax profits have increased at Castle Bromwich-based bicycle and leisure products manufacturer Tandem Group.
In its preliminary results for the year ended January 31, 2011, Tandem reports revenues have declined by 3% from £35.67m to £34.61m.
Pre-tax profits have increased to £1.08m, from £1.02m last year, and basic earnings per share were 19.6p compared with 17.67p year-on-year.
Net assets increased by £1.66m to £8.66m and its year-end stock position was higher than the prior year due to the early Chinese New Year, Tandem said.
It added that, following a positive start to 2011, revenue in March and April had fallen behind the previous year.
“National retailers have delayed and in some cases cancelled orders in an attempt to reduce their stock holdings in line with declining retail footfall and weak consumer demand, demonstrating how important new products and brand development is to the business,” the statement said.
“Our development teams continue to design and develop ranges of both our own brand products and also licensed product.
“Despite the reduction in revenue, we expect performance in the first quarter to be in line with the previous year.”
Chairman Mervyn Keene said: “The six-month period to January 31, 2011, was challenging, particularly the pre-Christmas trading period from October to December 2010.
“Turnover from a bicycle promotional contract with a national retailer was over £2m lower than last year. The inclement weather and weak consumer demand also had an adverse effect on trading with many of our customers reporting lower footfall and higher stock holdings than usual.”
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