Tandem Group says bicycle and eBike sales slightly ahead of 2022

Tandem Group’s latest trading update has revealed it will be expecting a loss between £0.9-£1.3 million for the year ended 31 December 2023, with revenues anticipated as £22m-£23m. eBike sales and cycle sales did bring some consolation news, however.

Tandem said “the domestic sales market has proven to be more challenging than had previously been anticipated”. However the glum numbers had been buoyed by a decent performance from its cycle branches.

Bicycle sales, including eBikes, remain significantly ahead of last year, it said, with its new electric bike range launch helping sales more than double against the prior year in this area. Likewise, Tandem’s lightweight children’s Squish bikes outperformed the prior year. Those positive results come against the backdrop of the UK cycle market’s major downturn, mirroring broader economic challenges and post Covid effects.

While the cycle performance was not enough to completely counteract declining trends in Toy sales and FOB (freight-on-board) sales, or challenges in the Home and Garden market, which Tandem also has a presence in, but they might come as a surprise against the aforementioned decline in the bike market.
Three new national retailer accounts have been secured, the group said, bolstering its confidence in its resilience and growth.

“While the Board is disappointed by the recent adverse change in current trading and the outlook for the remainder of FY2023, the Group retains a strong balance sheet, a well-managed current stock position, and we expect to see a positive impact on pension fund valuations as at 31 December 2023.
We believe that the Group’s strategic focus on continued investment in its people and capabilities, coupled with targeted operating cost reductions, focus on new customer accounts and innovation,
positions the Group well for success as markets improve. These measures affirm our commitment to long-term sustainability and growth.”

The group recently announced a partnership with Cyclefit, introducing Quella fixie and eBikes to its product offering.