Cycling group Tandem outlines strong year
Cycles, toys and mobility scooter supplier, Tandem Group, has confirmed a strong year despite a tough market for its cycling operation.
The Birmingham-based group is now looking at new marketing opportunities to boost performance in the current year.
Full year results for the year ended December 31, 2016 show group revenue for the year was £38,414,000, an increase of 12% (2015: £34,385,000).
Operating profit after exceptional items and before finance costs and taxation was £1,379,000 (2015: £1,287,000), an increase of 7%. Operating profit included a credit of £552,000 received from the vendors of acquisitions Pro Rider and ESC to compensate for the additional import duty costs on product imported prior to acquisition.
The group is proposing to pay a final dividend of 2.60p per share (2015: 2.50p) which, when combined with the interim dividend of 1.30p gives a total dividend of 3.90p for the year (2015: 3.75p).
Looking ahead, chairman Mervyn Keene said the group’s sports, leisure and toys division had agreed several new licences, most notably Cars 3, PJ Masks and Transformers. All three licences offer the potential to do well during the year.
“The London Toy Fair exhibition was a great success and enabled us to showcase the largest range of product that we have had for many years. The feedback on certain categories was extremely positive and we expect to reap the rewards of this throughout 2017,” said Mr Keene.
“In our bicycles division we have launched a new range of lightweight children’s cycles under the ‘Squish’ brand. This was exceptionally well received at our January trade show and we are encouraged by the potential of these products.
“In addition, we have launched an entry level range of value cycles under our ‘British Eagle’ brand. This is targeted at the new cyclist and provides opportunities for our dealer base to offer the consumer a quality bicycle at an affordable price.”
It has secured the majority of the 2017 gazebo business with a significant national retailer and is continuing to identify new national customers and online marketplaces to sell its ranges.
Newly-launched direct to consumer retail websites are continuing to show growth in traffic with more visitors and page views and it expects this to continue as it steps up its digital marketing campaigns.
“Following the expansion of the mobility range we believe we have a very credible range of mobility products to satisfy a wide range of budgets and we expect sales to increase in 2017,” said Mr Keene.
