Tandem riding high on positive trading
BIRMINGHAM-based sports equipment distributor Tandem Group has said turnover was approximately £19m in the half-year to the end of July, compared to £18.9m in the same period last year.
This comes despite turnover from a bicycle promotional contract with a national retailer being £1.4m lower than in the comparative period.
The Castle Bromwich firm, which owns the Falcon and Dawes cycle brands, said revenue from the Dawes business had shown exceptional growth, well ahead of market performance.
The markets reacted well to the news and trading was strong in early dealings.
The sports, leisure and toys business increased turnover by approximately 18% in the period with encouraging results from new product ranges.
In spite of US dollar volatility, increases in freight and raw material prices, shipping line disruptions and Far East labour shortages we expect the profit before tax for the half year to be ahead of last year.
It said improved Spring/Summer 2011 catalogue listings had been finalised during August and the sales order books in both bicycles & accessories and sports, leisure & toy businesses continued to grow.
In addition, it said there was increasing demand for bicycles, particularly the flagship brands of Claud Butler and Dawes.
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Tandem said that despite the fears Toy Story merchandise would saturate the market for Autumn/Winter 2010 following the release of the third film in the franchise, revenue from the licensed properties, including Ben 10 wheeled toys, was still likely to exceed earlier expectations.
It also said that following the appointment of administrators to Martin Yaffe International, the company had now reached an agreement with the licensor and the administrators to distribute the Waybuloo wheeled toy license with immediate effect enabling the firm to support national retailers’.
In outlook, the board said it was on course to achieve full year results well ahead of market expectations.
Following a review of the dividend strategy, the company is also expecting to announce an interim dividend.
