TIDMTND
RNS Number : 5004A
Tandem Group PLC
02 June 2021
Tandem Group plc
(the "Company" or "Group")
TRADING UPDATE, ANNUAL GENERAL MEETING ("AGM") ARRANGEMENTS AND
BOARD CHANGE
Tandem Group plc (AIM: TND), designers, developers, distributors
and retailers of sports, leisure and mobility equipment, announces
a trading update, arrangements for the 2021 AGM and Board
change.
Trading and operations
Since our last update in February, Group trading has remained
robust albeit against a much stronger prior year comparative,
especially from March 2020 when the UK was in lockdown following
the imposition of COVID-19 restrictions.
In our B2B businesses, revenue from 1 January 2021 to 31 May
2021 from sports, leisure and toy ranges was approximately 32%
ahead of the prior year, driven by increased FOB national retailer
business ( where our customers purchase product in full containers
and ship direct from the country of origin) and growth from own
brand products was materially ahead of the prior year.
Our Ben Sayers golf business has also performed particularly
well with revenue more than double the previous year to date
period. The forward order book is also well ahead of last year.
Bicycle revenue was approximately 21% ahead of the prior year
period, with ebike revenue particularly significant at 112% ahead.
The forward order book for bicycles remains exceptionally
strong.
In our Expressco B2C business, revenues were approximately 18%
ahead of the previous year with strong performance in a number of
categories, most notably gazebos, party tents and golf
products.
One of our biggest challenges continues to be stock
availability, particularly on bicycles, which once more is being
hindered by worldwide shipping capacity and container availability.
Freight costs have increased again in recent weeks and global
demand for components, particularly for bicycles, remains high
which has impacted our margin.
We also continue to be concerned by ongoing cost increases, with
significant rises in input costs such as steel, oil, plastic and
cardboard all of which also put pressure on margin.
Further, we remain mindful that COVID-19 is a continuing problem
in some of our supplier countries.
Despite these challenges Group revenue to 31 May 2021 was
approximately 24% ahead of the same period last year.
Profitability was also considerably ahead of the prior year
augmented by our cost base not yet returning to pre-COVID
levels.
We will make a further update at the AGM on 24 June 2021.
AGM arrangements
Following the latest Government guidance in relation to COVID-19
and in accordance with the roadmap out of lockdown announced in
February, it is our intention to hold a physical AGM in June.
However, the Company is aware of recent COVID-19 developments and
will continue to monitor the situation and how this may affect the
arrangements for the AGM.
Board change
The Company also announces that Juliet Barratt has resigned as a
non-executive director of the Company with immediate effect.
Following the successful sale of the Grenade business, of which
Juliet was a co-founder, she will be pursuing other personal
opportunities. Despite her short tenure, the Board would like to
thank Juliet for her contribution to the development of the Group's
brand and marketing strategy and wish her well for the future. We
will shortly commence the search for a new non-executive director
with similar brand and marketing skills that will complement the
existing non-executive Board.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
take responsibility for this announcement.
Enquiries:
Tandem Group plc
Jim Shears, Chief Executive Officer
David Rock, Company Secretary
Telephone 0121 748 8075
Nominated Adviser
Cairn Financial Advisers LLP
James Caithie
Sandy Jamieson
Telephone 020 7213 0880
2 June 2021
Forward-Looking Statements
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Company's current expectations,
estimates, and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and other factors, some
of which are beyond the Company's control, are difficult to
predict, and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
The Company cautions security holders and prospective security
holders not to place undue reliance on these forward-looking
statements, which reflect the view of the Company only as of the
date of this announcement. The forward-looking statements made in
this announcement relate only to events as of the date on which the
statements are made. The Company will not undertake any obligation
to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or
unanticipated events occurring after the date of this announcement
except as required by law or by any appropriate regulatory
authority.
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END
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