TIDMTND
RNS Number : 9201C
Tandem Group PLC
24 June 2021
Tandem Group plc
(the 'Group' or 'Company')
Annual General Meeting ('AGM') Statement
Tandem Group plc (AIM: TND), designers, developers, distributors
and retailers of sports, leisure and mobility equipment, announces
that at the AGM of the Company to be held today, the Company's
Chairman, Steve Grant, will make the following statement.
Trading
I am pleased to report that it has continued to be a positive
trading year so far for the Group, with revenue for the 25 weeks to
22 June 2021 approximately 14% ahead of the same period in the
previous year.
Revenue from our sports, leisure and toy business was
approximately 11% ahead of last year against a very strong
comparative during lockdown. In addition, there are currently over
$3 million of products manufactured and ready to ship pending
improvements in shipping conditions.
I n our licensed property ranges, Paw Patrol, Nerf and Disney
Princess were significantly ahead of the prior period. Other
licences including Peppa Pig, Batman and Barbie were also ahead of
the prior period.
In own brands, sales of escooters under our Wired and Li-Fe
brands made an excellent contribution, Kickmaster football training
and Hedstrom outdoor play products along with uMoVe and Stunted
scooters were all ahead of the previous year to date period.
Revenue from our Ben Sayers golf business was approximately 95%
ahead of the same period last year which in itself was also a
strong period. The forward order book remains well ahead of last
year.
Bicycle revenue, derived from both independent bicycle dealer
(IBD) and national retailer business, was approximately 12% ahead
of the prior period . We are also pleased to report that our
lightweight children's bicycle range Squish continues to grow and
was approximately 29% ahead of the same period last year.
Our greatest challenges continue to be to remain in stock of
bicycles and to maintain timely supply to our customers. For the
reasons I will explain in relation to the Group's Outlook, this has
been a significant challenge year to date and will remain an
ongoing issue for the foreseeable future. Notwithstanding this, t
he forward order book for bicycles remains exceptionally
strong.
In our Expressco B2C business, revenues were approximately 14%
ahead of the previous year despite the relatively poor weather
prior to June 2021, with May 2021 being the fourth wettest on
record and coldest since 1996, supply chain issues in June and a
strong comparative period. However, we performed well in a number
of categories, most notably gazebos, party tents, golf, heating and
various other home categories.
We continue to invest in our key websites; Garden Comforts by
Garden & Camping ( www.garden-camping.com ), At Home Comforts
by Jack Stonehouse ( www.jackstonehouse.com ), Pro Rider Mobility (
www.proridermobility.com ) and Pro Rider Leisure (
www.proriderleisure.com ) and have recruited additional digital
marketing and product development/buying resources for the second
half of the year which we expect to have a positive impact in 2022
and beyond.
Outlook
The outlook for the remainder of 2021 remains positive. Our
forward order books are at record levels with Group outstanding
orders currently totalling GBP34.7 million compared to GBP10.7
million at the same point last year. Whilst this is very
encouraging, it should be noted that our bicycle customers have
ordered much further forward than usual, well into 2022, to ensure
that they have ongoing supply in order to meet future predicted
demand which may or may not materialise as envisaged. Currently,
there are no signs of a slowing in demand in certain product
categories such as bicycles, golf and outdoor.
We continue, however, to face a number of unprecedented
challenges. Global demand is high and containers are in short
supply. Far East container ports are overloaded and in some cases
have closed for a period or are operating at reduced capacity.
Shipping lines persist with blank sailings of container ships.
During June, the Malaysian Shimano factory has been closed due to
COVID which has reduced the supply of cycle components. Input costs
such as steel, oil, plastic and cardboard have risen significantly
during the year. These issues have led to stock shortages,
unparalleled freight rates, reduced freight capacity and large
supplier cost increases which, in turn, put pressure on
margins.
Nevertheless, we are managing these challenges well. Operating
expenses continue to be closely controlled and, taking account of
the impact of furlough at the beginning of the lockdown last year,
are broadly in line with the prior year.
Although there are still uncertainties regarding what will
happen as the economy returns to a degree of normality, the Board
remains confident that the Group will deliver another strong
year.
Investor relations
The Company remains committed to seeking to engage with
shareholders, as appropriate, and in light of this year's AGM
arrangements investors are encouraged to continue to email the
Company's dedicated shareholder email address
investorrelations@tandemgroup.co.uk with any questions regarding
the business. In addition, the Board continues to evaluate ways to
enhance its investor relations activities and will make an update
in this regard in due course.
Dividend
We announced on 26 March 2021 that following a further strong
year in 2020 it was the Board's view that there was capacity to
again increase the dividend and therefore that it was our intention
to pay a final dividend of 5.50 pence per ordinary share. A
resolution to that effect will be proposed at the AGM today.
Subject to this resolution being passed, the dividend will be paid
on or around 1 July 2021 to shareholders on the register on 14 May
2021 (ex-dividend date 13 May 2021).
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
David Rock, Company Secretary
Telephone 0121 748 8075
Nominated Adviser
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Telephone 020 7213 0880
24 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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