Tandem Group revenue and profits up, “eBikes remain a key growth driver”

Tandem Group plc’s H1 2025 results saw profits and revenue both climb, with warm weather, lower interest rates and exchange rates helping buoy the numbers.

Specifically for cycling, the group noted that electric bikes remain a “core growth driver” – it launched four new models in H1, taking its sub-£2k range to 19 models.

Tandem noted that, for all the talk of reduced inventories, the market remains plagued (“competitive”) with deep discounting as legacy stock is cleared.

Tandem’s Squish brand delivered sales of +64% compared like-for-like and that’s a category Tandem is about to get stronger in, with junior-focused Hoy Bikes launching in H2 in partnership with Sir Chris, and 100 dealers are already onboarded, said Tandem.

The Group emphasised that despite the positive results, the trading landscape continues to be “defined by ongoing macroeconomic changes and shifts in consumer behaviour”. Noting unemployment at a four year high and rising employer costs through energy price rises, National Insurance rises introduced in April. There was a word, however, on consistent and low international shipping rate, no doubt a breather from what has been a hugely costly area for importers in recent years.

The Chairman said: “A disciplined focus on inventory management, rigorous cost control, better buying and reduced reliance on clearance activity have enabled us to safeguard and expand margins and have resulted in the Group delivering a resilient performance. Together with a continued pipeline of product innovation, this demonstrates the robustness of our strategy and provides a strong platform for sustainable long-term growth.
Group bike sales grew +50% versus last year.

More broadly for the group, diversification has proved key, broadening its product portfolio, introducing innovative new ranges, expanding licensing partnerships and strengthening own-label capabilities – including in cycling.

The Chairman said: “We are pleased with the progress achieved in H1, with increased diversification and resilience. The Group is now strengthened and better positioned for the future. Our colleagues remain the cornerstone of our success. Their commitment, expertise, and energy continue to power growth and innovation across the Group. As a result, the Board remains confident in the Group delivering full year performance in line with current market expectations. The Group’s financial position remains robust, underpinned by a strong balance sheet and substantial property assets. Solid cash reserves ensure financial flexibility, providing confidence in our ability to deliver on both current and future opportunities. Looking ahead, we remain resolutely focused on our strategic priorities, disciplined growth, operational efficiency, and continuous innovation. While headwinds persist, we see significant opportunities to strengthen our market position and deliver sustainable long-term value for all stakeholders.”

Highlights:

• Group revenue increased 14.3% to £11.2 million (H1 2024: £9.8 million)

• 21.4% increase in gross profit to £3.4 million (H1 2024: £2.8 million), with an increase in gross margin, to 30.9% (H1 2024: 28.8%), “primarily due to strong inventory management, cost reductions and foreign exchange movements during the period”

• July and August 2025 has shown a growth in sales, with sales year to date +11% ahead year on year

• Trading for the full year in line with market expectations