Bicycle supplier Tandem on a roll after good first half

BIRMINGHAM-based toys and leisure goods supplier, Tandem Group, has enjoyed a strong first half with revenue 12% up on the same period last year.

The company said its bicycles and mobility products businesses had performed well in the 25 weeks to June 19 with revenue up 14%.

However, it wasn’t the same everywhere. The group said that excluding mobility and cycles contributions from its Pro Rider mobility scooters acquisition, revenue was flat on last year and it has warned that the cycle market remains challenging.

Mervyn Keene, chairman, Tandem group, said in his AGM statement: “There has been a mixed performance in our bicycles and mobility businesses.  Although our independent bicycle brands, Claud Butler and Dawes, have been under significant competitive pressure, corporate bicycles have continued to perform well.  
 
“Feedback from our independent customers on the 2015 ranges has been positive but many customers have reported that the leisure cycling market is challenging.”
 
The group has continued to grow bicycle revenue to national accounts with its Falcon, Townsend, Elswick, Boss, Zombie and British Eagle brands.

It said its new Pro Rider distribution centre in Northampton was now fully operational.  In addition it will be opening a mobility showroom and service centre at its Castle Bromwich premises in July to augment the existing Northampton showroom.
 
Revenue in the sports, leisure & toys businesses for the 25 weeks to June 19 was up 9% on the same period last year enhanced by the contribution from Pro Rider’s leisure product ranges.  

“On a like for like basis, turnover was marginally behind the prior year.  On an overall basis our own and generic brands were broadly similar to the prior year.  Both Disney Princess and Star Wars were launched to positive feedback and Thomas & Friends also showed growth,” said Keene.
 
He said the group was also pleased to have secured new licences for the Shopkins and Bratz brands, which Keene said had the potential to deliver a valuable contribution to the business.
 
“We are cautiously optimistic about the outlook for the remainder of the year.  There continues to be strong potential in our licensed, direct to consumer and corporate bicycles businesses, however the independent cycle businesses remain under pressure in difficult market conditions,” he added.