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RNS Number : 0021R
Tandem Group PLC
25 June 2020
Tandem Group plc
(the 'Group' or 'Company')
AGM Statement
Chairman, Mervyn Keene, will make the following statement at
today's AGM:
"Trading
Despite the serious challenges of COVID-19 we are pleased to
announce that it has been a very encouraging period for the Group
with revenue for the 25 weeks to 23 June approximately 7% ahead of
the same period in the previous year.
In our licensed property ranges, FOB revenue, where our
customers purchase product in full containers and ship direct from
the country of origin, was well behind the prior year period.
However, Frozen and Spider-Man were stand out performers with the
FOB shortfall compensated by domestic revenue which was materially
ahead of the same period in the prior year. Other licences
including Peppa Pig, Batman, Disney Princess and Paw Patrol were
behind the prior year although domestic business was significantly
ahead.
Despite lower FOB orders, domestic sales of Kickmaster football
training and Hedstrom outdoor play products were also well ahead of
the prior year.
Following a slow start, revenue from our Ben Sayers golf brand
gathered great momentum over recent weeks to finish 81% ahead of
the prior period as golf courses reopened.
It has been an exceptional period for bicycle sales, with both
our independent bicycle dealer (IBD) and national retailer
customers significantly ahead and the overall cycle business
approximately 72% ahead of the prior year period. Given such
unprecedented demand, our greatest challenge has been to remain in
stock and to maintain timely supply to our customers.
Growth from ebikes has been particularly noteworthy and revenue
from our Squish lightweight junior range was again well ahead of
the same period in the prior year as we continue to increase market
share.
It has been particularly pleasing that many of our IBD customers
have benefitted from strong consumer demand for our Dawes and Claud
Butler ranges of commuter and leisure cycles since the period of
lockdown started.
In our B2C online businesses, revenue from many of our outdoor
product ranges including spas, trampolines, outdoor play and
football goals was significantly ahead of the prior year. The
combination of lockdown and particularly good weather during the
spring months had a very positive impact.
The previous investment into our online business helped to
increase visitor traffic and revenue from our own websites. In
particular, our Garden & Camping ( www.garden-camping.com ) and
At Home Comforts by Jack Stonehouse ( www.jackstonehouse.com )
websites have shown significant growth this year with the number of
visitors increasing by 120% and 180% respectively which has
resulted in significant revenue growth from these channels.
Outlook
Our outlook for the remainder of 2020 is broadly positive at
this stage. Domestic demand for wheeled toys, outdoor products and
bicycles is showing no sign of abatement. The FOB order book,
although behind the prior year, is growing in preparation for the
Christmas period.
The supply chain for bicycles is under great pressure. Our
suppliers have experienced their own varying degrees of lockdown in
their own countries which has halted production. There will be a
period of catch up before production lines become fully operational
and as a result we will have limited stock availability. We are
working hard to restore supply chains as soon as possible.
There is also some uncertainty regarding what will happen as we
exit lockdown and the economy attempts to return to a degree of
normality. At this stage it is difficult to assess the impact on
the ongoing demand for our products. However, we remain confident
that we will deliver another strong year.
Investor relations
As the Company has been unable to meet with shareholders at the
AGM we will be holding an investor day in September. This will
provide shareholders with the opportunity to visit our Birmingham
operation to view some of our products and discuss the business
with the Board and management.
It is also our intention to hold an interim result presentation
during the investor day and on an ongoing basis when future interim
and final results are published.
We continue to engage with shareholders on an individual basis
and shareholders are encouraged to email the Company's dedicated
shareholder email address investorrelations@tandemgroup.co.uk with
any questions regarding the business.
Dividend
In light of the strong performance in 2019 we announced on 26
March 2020 that it was our intention to pay a dividend of 5.04
pence per ordinary share comprising of a final dividend of 3.04
pence per ordinary share and, in addition, a special dividend of
2.00 pence per ordinary share. Resolutions to that effect will be
proposed at the AGM today. Subject to these resolutions being
passed, the dividend will be paid on or around 2 July 2020 to
shareholders on the register on 15 May 2020 (ex-dividend date 14
May 2020)."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (MAR).
Enquiries:
Tandem Group plc
Steve Grant, Chief Executive
Jim Shears, Group Finance Director and Company Secretary
Telephone 0121 748 8075
Nominated Adviser
Cairn Financial Advisers LLP
James Caithie / Tony Rawlinson
Telephone 020 7213 0880
25 June 2020
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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