Tandem Share Discussion Threads

[davidosh] 14/1/2010 10:57

Thanks Scburbs. Your explanation is very useful and lets hope it all plays through to the finals as we expect.

Has anyone got any stories or knowledge of sales at the independent retailers who are Tandems bread and butter ?

[scburbs] 14/1/2010 10:34

Davidosh,

My understanding of the margin situation was that margins had been squeezed by the FX, but that because forward contracts ran into the second half TND actually had to book part of the second half FX margin squeeze in the first half (a double squeeze). This should result in a higher margins in the second half.

This means the first half operating profit was really £610,000 and the £326,000 hit in relation to H2 having already been taken means that H2 performance should be stronger.

The FX rate between sterling and USD hasn't moved much since July so I don't think the current rate will make much difference.

"FOREIGN CURRENCY

In accordance with international accounting standards the difference between the value of forward foreign exchange contracts at their contracted rate and the exchange rate at period ends is charged or credited to cost of sales. The charge or credit is reversed in the period when the contract matures. Included in the bicycle and accessories cost of sales in the period is a charge of £326,000 in respect of outstanding contracts at 31 July 2009. There was a credit of £3,000 in the comparative period last year. As all forward contacts as at 31 July 2009 mature before 31 January 2010, this charge will be recovered in the second half of the year."

[davidosh] 14/1/2010 09:43

I guess Halfords sales of cycles are about as close to a whole market indicator as you can get as they have something like a 25% market share from memory. How do Tandem sales usually compare ie. Can we now hope for a 15% like for like growth in line with HFD ?

That said at the halfway stage we already booked....

Revenue in our bicycles and accessories businesses of £12,912,000 was 27.3% ahead of last year (2008: £10,141,000). The operating profit was £284,000 (2008: £605,000). The profit reduced as a result of charges to cost of sales for the revaluation of foreign exchange contacts referred to below.

Improved sales to national retailers increased revenue. A proportion of this business was shipped direct to our customers from our overseas production sources and as such had lower margins with no distribution costs and minimal UK overhead. Although our unit selling prices increased it was not possible to recover the full impact of rising costs in Asia and the volatile dollar and as a consequence margins in the bicycle businesses were lower.


So...Revenues should not be the problem it is getting that margin up to an acceptable level. If costs are under control and the exchange rates have moved back in our favour then we may see a very good result for the full year.

[scburbs] 14/1/2010 07:59

Cycling market continuing to perform strongly for Halfords with an impressive 15% LFL growth.

"Consistent with performance throughout 2009, revenue growth was strong within Car Maintenance and Cycling. Cycling performed well in the quarter, generating 15% like-for-like sales growth, with market share progression within the targeted areas of children's and premium bikes. Strong like-for-like growth in Car Maintenance of 8%, reflected both increased levels of fitting of bulbs, blades and batteries, which grew by over 60% year on year, and the sales benefit of the period of cold weather during December."

[willybaby] 13/1/2010 15:38

My comment makes no sense now?? Where has Post 1672 gone??

[willybaby] 12/1/2010 09:56

Wise is the word you are looking for, not brave.

[davidosh] 08/1/2010 09:56

The year ends on 31st January so if the board were to break with tradition and decide to put out an end of year trading update then it would be after January end and probably mid February IMO. We may see news on the NED front before then. The final results last year were in May.

As an aside if any shareholders are needing to sell the spread is wide and I have three keen buyers so please email me or just flag up the possibility here and we can arrange a mid price deal through your broker or off market with a transfer form to save charges too. Our shareholder group currently has nearly 10% and it is important to maintain that strength.

[18bt] 08/1/2010 08:22

David, thanks for news. I think that, if no news is forthcoming by the next report, the small shareholders should be getting increasingly militant. I for one might well increase my shareholding and start voting it agressively as TD Waterhouse have started a new nominee share voting facility (where my holding is held).

[cwa1] 07/1/2010 12:07

Thanks David, appreciate you taking the time to keep us posted on this one.

Disappointing about one candidate biting the dust, especially as he seemed suitable AND didn't even get an interview.

However, I suppose it is reasonable to hold fire for now and see just what they do come up with before saying anything.

On a separate, important, matter. What does anyone think are the prospects of a trading update post Christmas? As it is such an important time for the company surely it is not unreasonable to expect some kind of update, even if they have not done so in the past.

[davidosh] 07/1/2010 11:21

I was told only yesterday afternoon that one of the nominated NEDs has not been selected for interview even though in my opinion he is an ideal person to have on the board and has an excellent reputation from his days at Ben Bailey as the FD of what was a fully listed company before its takeover for £100m.

This rather disappoints me....three years of Tandem saying they are looking to find a non executive director and when one is put forward by shareholders he does not even get the courtesy of an interview. The other shareholder nominee has thankfully been interviewed but it is unlikely he will be notified about any appointment for a number of weeks as the company have advised that there are a number of other candidates. Amazing how those buses all come at once but the really important one going in the right direction had a puncture !

If a good outcome with very suitable non executives arises then we have achieved our goal.

[cwa1] 07/1/2010 08:39

Any word on the pre Christmas interviews?

Haven't heard anything back from Tandem from my email(apart from the "we've receieved it" comment). Maybe time to step up the campaign a little unlesss there is some activity in the background that anyone can assure on?

[supreme mo] 06/1/2010 19:39

mms short of stock again (famous last words)

[21simthy] 31/12/2009 09:16

7k seem a popular number for this regular buyer.

Bit strange they can offer it 2 days running, trades like normally
have the price racing away ?

[supreme mo] 30/12/2009 23:41

I would hope so david, whats the likelihood of an upbeat trading statement in the new year??!! lol (sarcastic)

[davidosh] 30/12/2009 16:16

Retail sales over Christmas have been good and I am sure kids have received their fair share of bikes and toys so hopefully Tandem will have done well too.

[supreme mo] 30/12/2009 16:00

couple of buyers today looking for last minute bargains of the year!!

[davidosh] 09/12/2009 13:17

I have not heard anything officially from the company but I can advise that at least one of our non executive nominees will be interviewed before Christmas. I do not know how many are being interviewed nor when the process will be completed.

[willybaby] 09/12/2009 13:14

Didn't break the ice then!!

[willybaby] 09/12/2009 12:24

Polar bear

[cwa1] 08/12/2009 11:47

Just wondering if anyone has heard anything further from the company re our proposals? Things seem to be fairly glacial at Tandem

[21simthy] 03/12/2009 13:02

Fair price David, the mm's will go 72.56 currently

[davidosh] 03/12/2009 12:57

If anyone wishes to sell I am happy to meet you halfway at the mid price.

[21simthy] 03/12/2009 12:33

mm's making a nice turn on the spread again, they cant lose !

[willybaby] 01/12/2009 08:32

73.5p to sell yesterday, so not a true representation of the spread.