Tandem is cycling towards an increase in revenue
Designer and retailer of sports and leisure equipment Tandem, said despite a strong second half of the year, the levels of growth did not match the first half.
Revenues in the first half of the year were 14% ahead of the same period in the previous year, whilst the second half of the year was 7% ahead in comparison to the same period.
The group expects to report revenue of £40.9m in its full-year trading report in March and anticipates that its profit before tax will be ahead of current market expectations.
Solihull-based Tandem said its toy, sports and leisure division was ahead with a number of licences growing, such as Paw Patrol, Peppa Pig, Nerf and Barbie.
Its bicycles business saw a 31% increase in its lightweight Squish branded children’s range, however, it was impacted by stock availability particularly on adult bikes. This has begun to improve recently and Tandem says it has better stock availability now than the previous year.
In addition, its eMobility segment grew 70% and the group expect this growth to continue. Therefore, it is investing in its Castle Bromwich premises in order to refresh its eScooters, eBicycles, electric gold trolleys and mobility scooter range and add eMotorbikes and eMopeds to the range.
Planning permission was granted in December for a new warehouse which will be completed in Q4 of 2022.
The group recently exhibited at London Toy Fair and said it received positive feedback, especially on new licences including Bluey, CoComelon and Rainbow High. There was also general excitement about the new Disney Pixar Lightyear range, with the movie being released in June this year.
