The Tandem Group has released its half yearly report for the six months ended June 30th, within which it has posted increased revenues, profits and reduced costs.
On the back of the strong statement, the group’s share price is now trading at £4.24 at the time of writing, many fold its year low of around £1.07.
Group revenue for the first half increased by around 6% to reach £16.9 million, compared to around £16 million in the same period last year.
From an investor’s point of view it is the firm’s gross profits, up from £4,911,000 to £5,556,000 and gross profit margin, (32.8% against last year’s 30.6%) that will have made enjoyable reading.
Meanwhile the group’s operating expenses decreased from £4,331,000 to £4,078,000 in the first half, something that was attributed to a reduction in third-party warehousing costs, lower travel expenses and lower wage costs. Finance costs also decreased to £69,000 from £210,000 during the same period last year.
As a result of the above, there was a significant increase in operating profit to £1,478,000 compared to £580,000 in the prior year period. Net profit for the period to 30 June 2020 was £1,141,000 compared to £155,000 in the six months to 30th June, 2019.
Shareholders are now to see their faith rewarded with basic earnings per share in the six months to June 30th weighing in at 22.7 pence per share compared to 3.1 pence per share in the prior period. The interim dividend will double to £3.12 per share, payable on November 10th.
Though Tandem’s wider diversified business performed reasonably well, all things considered, the bicycle business trade was described as “exceptional” with “significant growth with both independent bicycle dealers (IBD) and national retail customers.”
“Our greatest challenge has been to remain in stock and to maintain timely supply to our customers,” said Steve Grant’s Director’s statement in reference to an ongoing supply challenge for much of the bicycle business.
“Stock availability has improved significantly during September and is expected to continue into the final quarter in the lead up to Christmas,” reassures Tandem.
The Tandem Group statement continued: “Our range of Squish bikes has continued to increase market share and was well ahead of the same period in the prior year. In addition, there was a strong demand for our Dawes and Claud Butler ranges since the period of lockdown began, benefitting many of our IBD customers.
“We are particularly excited about the growth in e-bikes and growth potential of e-scooters. We continue to invest in both ranges utilising our own bicycle brands Dawes and Falcon and our scooter brands Li-Fe and Wired.”