REVENUES at Castle Bromwich-based Tandem Group Cycles has increased slightly year-on-year, the company reports today.
In a half-yearly report for the six months ended July 31, 2010, revenues increased to £19.06m from £18.9m in the same period last year.
Pre-tax profit improved by 18.5% to £648,000, up from £547,000, while net assets also increased by 6% to £7.7m, from £7.2 last year.
The company said that bicycles and accessories businesses revenue decreased by 7.8%, to £11.9m from £12.9m, as a result of a reduction in the value of a promotional contract with a national retailer.
However, turnover with independent bicycle retailers increased and revenue from its Dawes cycle business showed growth.
Operating profit from its bicycles and accessories businesses increased to £424,000 compared to £284,000 last year.
In its sports, leisure and toys division, there was an increase in revenue of 18.6% to £7.1m, up from £6.03m last year.
Operating profit in this division increased by 5.5% from £621,000 to £655,000.
Group revenue for the 37-week period to October 15 was approximately £26.9m compared to £27.3m in the comparative period last year.
Looking ahead, the half-year statement said: “September and October have been challenging months, particularly in the bicycles and accessories businesses, due to cautious consumer spending and delayed purchasing by independent retailers of our junior models for Christmas.
“As a result we remain cautious about the group’s outlook for the Christmas trading period.
“(The) board has started to implement the measures necessary to achieve our objectives of enhancing shareholder value.
“This involves achieving growth both organically and by the careful identification of suitable acquisitions.
“We are investing in human resources, infrastructure and the additional brand and marketing activities necessary to support our sustainable growth objectives in the medium to long term.”
