Avengers and Star Wars working in Tandem for Birmingham firm
A RAFT of high profile entertainment licences are set to boost Birmingham-based sports, leisure goods and mobility equipment supplier, Tandem Group.
The group had already secured licences for the new range of toys to support the 50th anniversary of perennial children’s favourite Thunderbirds but it has now added to these with merchandising for the new Avengers film, set to hit the UK in late April and even bigger than that, it has distribution rights for toys associated with the new Star Wars film.
The latter are due to the company’s agreement with Disney, which has also seen it win licences for the highly successful Disney Princess and Cars ranges.
In a trading update, the company said it was optimistic for 2015 and not solely because of these licence agreements.
Last year the company decided to expand its presence in the mobility scooter sector with the acquisition of the Pro Rider business and this has reaped rewards.
In the update, which comes ahead of its annual results for the year ended December 31, 2014, the company said revenue for the year was over 10% ahead of the prior year at approximately £31.3m.
“The acquisition of Pro Rider, completed on August 1, 2014, delivered revenue of £1.4m which is included in this figure. On a like for like basis, group revenue for the year ended December 31, 2014 was approximately 6% ahead of last year. Operating profit is expected to be significantly up on last year,” it said.
The company also saw a finance cost of £516,000 in respect of a fair value adjustment on derivatives recorded in the year ended December 31, 2013 fully reversed during the year. In addition, a fair value credit of £142,000 was recorded for last year which will reverse in 2015.
Within its Bicycles, Bicycle Accessories and Mobility sector revenue and profitability were ahead of last year. Dawes and the corporate bicycles division performed ahead of expectation. However, it warned competition remained intense in the entry level price points where heavy discounting was prevalent and there was a continuing lack of demand for BMX product.
Pro Rider has now been fully integrated into the group and it said mobility products, in particular mobility scooters, had made a solid contribution to profitability for the year.
Across its Sports, Leisure and Toys sectors revenue increased by approximately 16%. In licensed categories it was a very strong year for One Direction and Peppa Pig with both properties showing significant growth against the previous year.
Its own brand categories, Hedstrom made a very positive contribution together with the Stunted scooter range. Kickmaster was also well ahead of the prior year.
In golf, it said although Bioflow sales grew and Pro Rider electric golf trolleys helped to increase turnover, Ben Sayers was slightly behind the prior year reflecting the tough golf market.
The group has also started the current year strongly with revenue for the first six weeks of 2015 ahead of last year with a particularly strong start for the Sports, Leisure and Toys businesses.
