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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tandem Group Plc | LSE:TND | London | Ordinary Share | GB00B460T373 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -7.00 | -3.47% | 195.00 | 190.00 | 200.00 | 202.00 | 195.00 | 202.00 | 0.00 | 08:15:36 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Motorcycles,bicycles & Parts | 26.68M | 674k | 0.1233 | 15.82 | 10.66M |
From Apr 2019 to Apr 2024
TIDMTND
RNS Number : 1709S
Tandem Group PLC
29 September 2017
Tandem Group plc
Half Yearly Report
for the six months ended
30 June 2017
CHAIRMAN'S STATEMENT
Results
I am pleased to announce the Group's interim results for the six month period ended 30 June 2017. There was an increase in Group revenue in the six months to 30 June 2017 of approximately 3.1% to GBP17,651,000 which compared to GBP17,115,000 in the prior year period.
Gross profit slightly reduced from GBP5,106,000 to GBP4,938,000 in the period. As we have previously reported, to compensate for the ongoing pressure on margin from the weak GBP to USD exchange rate we had no alternative but to implement a price increase in the latter part of 2016, negotiated better buying prices with suppliers and where this could not be achieved, re-sourced to new factories.
There was a reduction in operating expenses of GBP630,000 from GBP4,812,000 to GBP4,182,000 in the six months to 30 June 2017 compared to the prior year period. This reflected the reorganisation undertaken in our bicycles division in the second half of 2016 and resultant cost savings.
Operating profit before exceptional costs and credits increased to GBP756,000 compared to GBP294,000 in the six months to 30 June 2016.
Principally as a result of the fair value revaluation of our derivative currency contracts, finance costs increased from GBP304,000 to GBP337,000 in the six months to 30 June 2017. This fair value charge and finance costs in respect of the pension schemes are shown in non-underlying items.
The profit before taxation after non-underlying items for the period increased to GBP419,000 in the six month period to 30 June 2017 compared to GBP196,000 in the prior year period.
The tax charge for the period was GBP46,000 compared to GBP62,000 in the prior period. This reflected the tax charge in the Hong Kong business.
Net profit for the period increased to GBP373,000 compared to GBP134,000 in the six months to 30 June 2016.
Basic earnings per share in the six months to 30 June 2017 was 7.6 pence per share compared to 2.8 pence per share in the same period in 2016.
Cash and cash equivalents increased from GBP980,000 at 30 June 2016 to GBP1,506,000 at 30 June 2017. There were cash inflows from operations of GBP266,000 which contributed to the improvement.
Net debt reduced from GBP5,824,000 at 30 June 2016 to GBP4,292,000 at 30 June 2017 with net assets at 30 June 2017 GBP8,400,000 against GBP8,048,000 at 30 June 2016.
Sports, leisure and toys
In the six months to 30 June 2017 revenue increased to GBP12,956,000 compared to GBP11,037,000 in the prior year period.
There was an increase in operating profit from GBP562,000 in the period ended 30 June 2016 to GBP874,000 in the period to 30 June 2017.
The new Cars 3 and Trolls licences performed well during the period and PJ Masks started strongly. Disney Princess, Batman and Paw Patrol also continued to perform ahead of expectation.
In own brands, Stunted and Hedstrom performed particularly well. Revenue from our Airwave gazebo and party tent products exceeded the comparative period last year.
During the period we continued to develop our direct to consumer business with our marketing team focussed on improving brand awareness and the visibility of our products on the various websites from which we sell.
Bicycles and mobility
Revenue in our bicycles, accessories and mobility businesses reduced compared to the previous year period from GBP6,078,000 to GBP4,695,000 for the six month period to 30 June 2017. This was anticipated and in line with expectations following the restructuring of the bicycle businesses last year.
Notwithstanding the reduction in revenue, operating profit increased to GBP125,000 compared to GBP19,000 in the prior year.
Mobility sales were behind the prior year period, principally due to pricing issues although this has been addressed in the second half of the year.
The new range of Squish lightweight junior bicycles continued to gain momentum and we significantly increased the number of customers stocking the range during the period.
Trading update and outlook
Many retailers have reported that poor weather in July and August has affected sales. We are no exception and this has led to Group revenue for the 38 week period to 22 September being slightly behind the prior year period at approximately GBP28.2 million compared to GBP28.8 million in the comparative period last year.
Sports, leisure and toys
Sports, leisure and toys revenue for the 38 week period to 22 September was approximately GBP21.3 million compared to GBP19.8 million last year.
A number of national retailer customers are reporting that they are overstocked after the poor summer trading period. It has been reported that the outdoor toy market was 25% behind the prior year in both July and August.
The recent rise in inflation increases our concerns about a general slowing in the economy as we lead up towards the busy Christmas period.
One of our major customers has filed for Chapter 11 bankruptcy protection in the US and Canada but this does not apply to its UK operation which continues to trade normally. We are closely monitoring the position.
We are bringing a number of new products to market including an extended range of gazebos, outdoor light up furniture under our "Party Glow" brand and a range of tepees both for children and adults.
Bicycles and mobility
In the bicycles, accessories and mobility businesses revenue for the 38 weeks to 22 September was approximately GBP6.9 million compared to GBP9.0 million in the prior year. However, we remain on target with our turnaround plan and expect to make the anticipated cost savings of GBP1 million that we reported in our trading update in January.
The market remains unquestionably challenging. Our cost base has been adjusted to reflect this following the restructuring of the business. We remain committed to supporting our loyal network of independent bicycle dealers with our Claud Butler, Dawes, British Eagle and Squish brands despite the number of independent bicycle shops continuing to decrease.
We expect to make continued progress with our lightweight children's Squish range of bicycles and are excited by the opportunity to develop the brand further.
There are ongoing opportunities to increase revenue from our corporate brands including Falcon, Elswick, Townsend, Boss and Zombie.
We have re-sourced a number of our own brand Pro Rider mobility scooters which offer better specification at lower prices. In addition, we have added to our distribution portfolio following an agreement with KYMCO. This compliments well with our existing ranges of Pro Rider, Drive Devilbiss, Freerider, Sunrise Medical and TGA Mobility products. Mobility scooter performance has improved in the second half of the year to date.
Dividend
We are declaring an interim dividend of 1.35p per share (2016 - 1.30p per share) payable on or about 13 November 2017 in line with our progressive dividend policy. The ex-dividend date will be 12 October 2017 and the record date 13 October 2017.
MPJ Keene
Chairman
29 September 2017
CONDENSED CONSOLIDATED INCOME STATEMENT
For the 6 months ended 30 June 2017
Hot Features
Premium
6 months ended 30 June 2017 6 months ended 30 June 2016 Unaudited Year ended 31 December 2016
Unaudited Audited
Note Before Non-underlying After Before Non-underlying After Before Non-underlying After
non-underlying items non-underlying non-underlying items non-underlying non-underlying items non-underlying
items GBP'000 items items GBP'000 items items GBP'000 items
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2 17,651 - 17,651 17,115 - 17,115 38,414 - 38,414
Cost of sales (12,713) - (12,713) (12,009) - (12,009) (28,434) - (28,434)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Gross profit 4,938 - 4,938 5,106 - 5,106 9,980 - 9,980
Operating
expenses (4,182) - (4,182) (4,812) - (4,812) (8,744) - (8,744)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Operating profit
before
exceptional
items 756 - 756 294 - 294 1,236 - 1,236
Exceptional items - - - - 206 206 - 143 143
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Operating profit
after
exceptional
items 756 - 756 294 206 500 1,236 143 1,379
Finance costs (122) (215) (337) (112) (192) (304) (207) (258) (465)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Profit before
taxation 634 (215) 419 182 14 196 1,029 (115) 914
Tax
(expense)/credit (46) - (46) (62) - (62) (146) 9 (137)
Net profit for
the period 2 588 (215) 373 120 14 134 883 (106) 777
============== ============== ============== ============== ============== ============== ============== ============== ==============
Pence Pence Pence
Earnings per
share
Basic 3 7.6 2.8 16.0
============== ============== ==============
Diluted 3 7.5 2.7 15.7
============== ============== ==============
All figures relate to continuing operations.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 30 June 2017
6 months
6 months ended
ended 30 June Year ended 31 December
30 June 2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit for the period 373 134 777
Other comprehensive income:
Items that will be reclassified subsequently to profit and loss:
Foreign exchange differences on translation of overseas
subsidiaries (144) 139 322
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on pension schemes - - (738)
Movement in pension schemes' deferred tax provision - - 57
------------- --------- ----------------------
Other comprehensive income for the period (144) 139 (359)
Total comprehensive income attributable to equity shareholders of
Tandem Group plc 229 273 418
============= ========= ======================
All figures relate to continuing operations.
CONDENSED CONSOLIDATED BALANCE SHEET
As at 30 June 2017
At 31
At 30 June At 30 June December
2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non current assets
Intangible fixed assets 5,617 5,612 5,625
Property, plant and equipment 3,071 3,206 3,141
Deferred taxation 1,921 1,825 1,918
---------- ----------- ---------
10,609 10,643 10,684
Current assets
Inventories 7,267 8,121 7,624
Trade and other receivables 6,713 7,379 3,910
Derivative financial asset held at fair value - 125 117
Cash and cash equivalents 1,506 980 1,101
---------- ----------- ---------
15,486 16,605 12,752
Total assets 26,095 27,248 23,436
========== =========== =========
Current liabilities
Trade and other payables (7,073) (8,434) (5,571)
Other liabilities (3,946) (4,527) (3,226)
Derivative financial liability held at fair value (28) - -
Current tax liabilities (640) (477) (133)
---------- ----------- ---------
(11,687) (13,438) (8,930)
Non current liabilities
Other payables (2) (6) (5)
Other liabilities (1,852) (2,277) (2,072)
Pension schemes' deficits (4,154) (3,479) (4,215)
---------- ----------- ---------
(6,008) (5,762) (6,292)
Total liabilities (17,695) (19,200) (15,222)
========== =========== =========
Net assets 8,400 8,048 8,214
========== =========== =========
Equity
Share capital 1,503 1,503 1,503
Shares held in treasury (247) (295) (272)
Share premium 286 175 232
Other reserves 3,122 3,083 3,266
Profit and loss account 3,736 3,582 3,485
---------- ----------- ---------
Total equity 8,400 8,048 8,214
========== =========== =========
CONDENSED Consolidated statement of changes in equity
As at 30 June 2017
Shares
held Share Capital Profit
Share in premium Merger redemption Translation and loss
capital treasury reserve reserve reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2016 1,503 (316) 127 1,036 1,427 481 3,561 7,819
Net profit for
the period - - - - - - 134 134
Retranslation
of overseas
subsidiaries - - - - - 139 - 139
--------- --------- --------- -------- ---------- ----------- --------- -------
Total
comprehensive
income for
period
attributable
to equity
shareholders - - - - - 139 134 273
Share based
payments - - - - - - 8 8
Exercise of
share options - 21 48 - - - - 69
Dividends paid - - - - - - (121) (121)
--------- --------- --------- -------- ---------- ----------- --------- -------
Total
transactions
with owners - 21 48 - - 139 21 229
--------- --------- --------- -------- ---------- ----------- --------- -------
At 30 June 2016 1,503 (295) 175 1,036 1,427 620 3,582 8,048
Net profit for
the period - - - - - - 643 643
Retranslation
of overseas
subsidiaries - - - - - 183 - 183
Net actuarial
loss on
pension
schemes - - - - - - (681) (681)
--------- --------- --------- -------- ---------- ----------- --------- -------
Total
comprehensive
income for
period
attributable
to equity
shareholders - - - - - 183 (38) 145
Share based
payments - - - - - - 5 5
Deferral tax - - - - - - - -
on share
options
Exercise of
share options - 23 57 - - - - 80
Dividends paid - - - - - - (64) (64)
--------- --------- --------- -------- ---------- ----------- --------- -------
Total
transactions
with owners - 23 57 - - 183 (97) 166
--------- --------- --------- -------- ---------- ----------- --------- -------
At 1 January
2017 1,503 (272) 232 1,036 1,427 803 3,485 8,214
Net profit for
the period - - - - - - 373 373
Retranslation
of overseas
subsidiaries - - - - - (144) - (144)
--------- --------- --------- -------- ---------- ----------- --------- -------
Total
comprehensive
income for
period
attributable
to equity
shareholders - - - - - (144) 373 229
Share based
payments - - - - - - 6 6
Exercise of
share options - 25 54 - - - - 79
Dividends paid - - - - - - (128) (128)
--------- --------- --------- -------- ---------- ----------- --------- -------
Total
transactions
with owners - 25 54 - - (144) 251 186
--------- --------- --------- -------- ---------- ----------- --------- -------
At 30 June 2017 1,503 (247) 286 1,036 1,427 659 3,736 8,400
========= ========= ========= ======== ========== =========== ========= =======
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 June 2017
At 31
At 30 June At 30 June December
2017 2016 2016
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit for the period 373 134 777
Adjustments:
Depreciation of property,
plant and equipment 78 98 186
Amortisation of intangible
fixed assets 8 - 31
Loss/(profit) on sale of property,
plant and equipment 1 - (5)
Waiver of deferred consideration - (241) (651)
Contributions to defined benefit
pension schemes (132) (130) (260)
Finance costs 337 304 465
Tax expense 46 62 137
Share based payments 6 8 13
------- ------- -------
Net cash flow from operating
activities before movements
in working capital 717 235 693
Change in inventories 356 (1,894) (1,397)
Change in trade and other
receivables (2,803) (1,789) 1,558
Change in trade and other
payables 1,996 3,299 946
Cash flows from operations 266 (149) 1,800
Interest paid (122) (54) (207)
Tax paid (40) (22) (287)
Net cash flow from operating
activities 104 (225) 1,306
======= ======= =======
Cash flows from investing
activities
Acquisition of subsidiaries
deferred consideration paid - - (32)
Purchase of intangible fixed
assets - - (44)
Purchase of property, plant
and equipment (8) (42) (59)
Sale of property, plant and
equipment - - 5
Net cash flow from investing
activities (8) (42) (130)
======= ======= =======
Cash flows from financing
activities
Loan repayments (204) (204) (407)
Finance lease repayments (13) (12) (24)
Change in invoice financing 718 493 (808)
Exercise of share options 78 69 149
Dividends paid (128) (121) (185)
Net cash flow from financing
activities 451 225 (1,275)
======= ======= =======
Net change in cash and cash
equivalents 547 (42) (99)
Cash and cash equivalents
at beginning of period 1,101 878 878
Effect of foreign exchange
rate changes (142) 144 322
------- ------- -------
Cash and cash equivalents
at end of period 1,506 980 1,101
======= ======= =======
NOTES TO THE HALF YEARLY REPORT
1 General information
Tandem Group plc is a public limited company incorporated and domiciled in the United Kingdom with its shares listed on AIM, the market of that name operated by the London Stock Exchange.
The principal activity of the Group is the design, development and distribution of sports, leisure and mobility equipment.
The ultimate parent company of the Group is Tandem Group plc whose principal place of business and registered office address is 35 Tameside Drive, Castle Bromwich, Birmingham,
B35 7AG.
The interim financial statements for the period ended 30 June 2017 (including the comparatives for the period ended 30 June 2016 and the year ended 31 December 2016) were approved by the Board of Directors on 29 September 2017. Under the Security Regulations Act of the European Union ("EU"), amendments to the financial statements are not permitted after they have been approved.
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2016, prepared under International Financial Reporting Standards ("IFRS"), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Sections 498(2) and 498(3) of the Companies Act 2006.
This interim financial information has been prepared using the accounting policies set out in the Group's 2016 statutory accounts. Copies of the annual statutory accounts and the interim report may be obtained by writing to the Company Secretary of Tandem Group plc, 35 Tameside Drive, Castle Bromwich, Birmingham, B35 7AG and can be found on the Company's website at www.tandemgroup.co.uk.
The net retirement benefit obligation recognised at 30 June 2017 is based on the actuarial valuation under IAS19 at 31 December 2016 updated for movements in net defined benefit pension income and contributions paid during the half year period. A full valuation for IAS19 financial reporting purposes will be carried out for incorporation in the audited financial statements for the year ending 31 December 2017.
2 segmental reporting
For management purposes the Group is organised into two operating segments. The revenues and net results for these segments are shown below:
Sports, leisure and toys Bicycles and mobility Total
GBP'000 GBP'000 GBP'000
6 months ended 30 June 2017
Revenue 12,956 4,695 17,651
------------------------ --------------------- -------
Segment result 874 125 999
------------------------ ---------------------
Unallocated corporate charges (243)
-------
Operating profit before exceptional items 756
Finance costs (337)
-------
Profit for the period before taxation 419
Tax expense (46)
Net profit for the period 373
=======
6 months ended 30 June 2016
Revenue 11,037 6,078 17,115
------------------------ --------------------- -------
Segment result 562 19 581
------------------------ ---------------------
Unallocated corporate charges (287)
-------
Operating profit before exceptional items 294
Exceptional items 206
-------
Operating profit after exceptional items 500
Finance costs (304)
-------
Profit for the period before taxation 196
Tax expense (62)
Net profit for the period 134
=======
Year ended 31 December 2016
Revenue 26,975 11,439 38,414
------------------------ --------------------- -------
Segment result before corporate charges 2,233 124 2,357
Corporate charges (695) (363) (1,058)
------------------------ --------------------- -------
Segment result after corporate charges 1,538 (239) 1,299
------------------------ ---------------------
Unallocated corporate charges (63)
-------
Operating profit before exceptional items 1,236
Exceptional items 143
-------
Operating profit after exceptional items 1,379
Finance costs (465)
-------
Profit before taxation 914
Tax expense (137)
Net profit for the year 777
=======
3 earnings per share
The calculation of earnings per share is based on the net result and ordinary shares in issue during the period as follows:
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Net profit for the period 373 134 777
========= =========== ============
Number Number Number
Weighted average shares in
issue used for basic earnings
per share 4,930,187 4,755,880 4,863,496
Weighted average dilutive
shares under option 72,775 186,527 84,530
Average number of shares used
for diluted earnings per share 5,002,962 4,942,407 4,948,026
========= =========== ============
Pence Pence Pence
Basic earnings per share 7.6 2.8 16.0
========= =========== ============
Diluted earnings per share 7.5 2.7 15.7
========= =========== ============
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR).
Enquiries:
Tandem Group plc
Steve Grant, Chief Executive
Jim Shears, Group Finance Director and Company Secretary
Telephone 0121 748 8075
Nominated Adviser
Cairn Advisers LLP
Tony Rawlinson
James Caithie
Telephone 020 7213 0880
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LPMLTMBATBFR
(END) Dow Jones Newswires
September 29, 2017 02:02 ET (06:02 GMT)
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