Dawes and Claud Butler parent The Tandem Group has made eight staff redundant in its cycling division, reports BikeBiz.
At the close of September the group’s half yearly report revealed some sharp declines in revenues, with the segment generating an operating profit of £19,000, compared to £597,000 in the period to June 30th, 2015. Revenue from the bicycle, accessory and mobility segment – the least profitable in the group’s portfolio – declined from £8,397,000 to ££6,078,000.
Overall Tandem’s revenues increased by nearly 10% to £17,115,000, however operating profit decline by £236,000 year-on-year.
Citing a retrospective import duty payment, increased promotional activity by competitors and a weak pound following the EU Referendum, Tandem describe this a “particularly challenging period for the UK leisure and cycling market. Despite planning ahead with its future US dollar requirement, the group says it has had no alternative but to raise prices on its product portfolio.
“We expect to be in a resilient position to take the business forward in 2017,” the group said of its Sports, Leisure and Toys segment, an are in which it is investing in new websites and infrastructure.