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Over the last 17 years Tandem (LSE:TND) has added a number businesses to its bicycle importing operation (the declining bicycle trade was discussed in yesterday’s Newsletter). In 2003 it merged with MV Sports, a designer of character children’s wheeled toys and other children’s outdoor products, such as bicycles, scooters and skateboards for the under-tens.
MV’s business model was, and is, to obtained permission from copyright owners the right to plaster images of famous characters loved by children, e.g. Barbie, Winnie the Pooh, Bratz, Thomas and Bob the Builder. The bicycles, etc. are made in Asia.
Tandem gave £4.3m consideration, in the form of its own shares, to MV’s owners. Turnover of MV in 2002 was £22.7m selling to big retailers, e.g. Argos, Toys R Us, Halfords.
Its operating loss was £0.44m (2001 operating profit £0.36m). In 2003 it had 60 staff.
Here are some recent numbers for MV Sport taken from Companies House files – I don’t know if some revenue, costs or profits are put through other subsidiaries of Tandem so treat these numbers with caution).
Data from MV Sports accounts
| £m | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||
| Turnover | 9.7 | 11.6 | 11.7 | 10.6 | 8.7 | 5.6 | ||||||
| Cost of sales | -6.4 | –8.2 | -8.2 | -7.2 | -5.8 | -3.8 | ||||||
| Gross profit | 3.3 | 3.4 | 3.5 | 3.4 | 2.9 | 1.8 | ||||||
| Gross margin | 34% | 29% | 30% | 32% | 33% | 32% | ||||||
| Operating expenses | -2.5 | -2.2 | -2.5 | -2.5 | -2.0 | -1.5 | ||||||
| Operating profit | 0.8 | 1.1 | 1.0 | 1.0 | 0.9 | 0.3 | ||||||
| Operating margin | 8% | 10% | 9% | 9% | 10% | 5% | ||||||
| Profit after tax | 0.7 | 1.1 | 0.4 | 1.2 | 1.1 | 0.1 | ||||||
| Employees | 31 | 36 | 35 | 34 | 31 | 28 | ||||||
| Staff costs | 1.1 | 1.1 | 1.1 | 1.1 | 0.9 | 0.8 |
In 2017-18 it had to cope with the closure of Toys R Us.
Steven Grant, MD of MV in 2003 is now CEO of Tandem, aged 58. Also, Phil Ratcliffe, Tandem’s Commercial Director on the main Board, aged 56, is a MV man having joined it in 1999.
In recent years, MV added a large number of new characters, ranging from Disney Princess to Cars 3, to attract children.
Kickmaster
MV Sports came with Kickmaster, a line of football goal products and other children’s outdoor equipment. Again, these are designed in UK but manufactured under contract in Asia and sold to the likes of Argos.
Ben Sayers
The Ben Sayers golf business was acquired by Tandem in 2002 for £1.2m. It offers a budget range of golf clubs, bags and other accessories. These are designed and marketed in the UK but manufactured under contract in Asia and sold to the likes of Argos.
Hedstrom
Included in the Sports, Leisure and
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