REVENUES at Birmingham-based cycle manufacturer Tandem Group have fallen for the first half of the year from £19m to £16.6m.
But the Castle Bromwich group said today gross profits had been maintained at £4.9m for the six months to July 31, 2011.
Operating profit fell slightly from £713,000 to £639,000 while pre-tax profit was £553,000, down from £648,000.
Net profit for the six months was also down from £601,000 to £527,000. Chairman Mervyn Keene said: “The period has been one of great economic uncertainty and intense competition in our market.
“Despite these challenges we are well placed to take advantage of an economic upturn.
“As we previously reported the company carried out a share buyback during the period.
“We continue to evaluate share buyback opportunities and the earnings enhancing impact this has.”
The statement added that more favourable currency rates and shipping costs had helped to improve gross margin in the bicycles and accessories division.
A number of its competitors had adopted a policy of heavy discounting in an attempt to maintain their market share and to reduce stock levels, it said, which meant its strategy of upholding “brand values” saw a small reduction in turnover but a “significant increase” in profitability.
