Tandem Share Discussion Threads

[amt] 13/6/2020 19:57

David You kindly reported back from the AGM last year and one part you wrote.
It would be interesting to find out what happened regarding the new initiative of Shareholder/Investor relations committee.

I thought the Agm update was very detailed and that is an excellent basis for Q&A which the seven of us had the benefit of.

The chairman advised us that he is setting up a new initiative of a 'Shareholder/Investor relations committee' which will include just one shareholder and will as I understand it then report to the wider investor community. This idea seemed very strange to me and who would the one shareholder with all this added responsibility be? Furthermore will they be taken inside or just briefed more fully?

[dan_the_epic] 13/6/2020 18:42

Amt says "If you look at the share price over the last 20 years you will see its been a good performing share."

The irony is he has not even looked at this himself because the share price has been awful over the last 20 years !

[amt] 13/6/2020 18:11

What I find baffling is how so much fuss has been made over some possible technicality in the Article of Association. All this is rather disheartening and when the share price was breaking out.

[amt] 13/6/2020 18:05

By the way companies that are slightly off the radar from my experience provide the best investment opportunities. It's the one that seek continual publicity that get hyped and usually don't do well. Having said that just to reiterate I would like to see AGM presentations filmed and put on the website and certainly the very occasional interview wouldnt do any harm.

[amt] 13/6/2020 18:05

By the way companies that are slightly off the radar from my experience provide the best investment opportunities. It's the one that seek continual publicity that get hyped and usually don't do well. Having said that just to reiterate I would like to see AGM presentations filmed and put on the website and certainly the very occasional interview wouldnt do any harm.

[amt] 13/6/2020 17:53

Davidosh. I hope we can agree to keep our posts civil and reasonably friendly and not start to get personal. I have a couple of decades of investing on Aim and see things differently, that's all. I am not a fan of Brokers and their forecasts. I would rather make my own decisions and forecasts. I have so many experiences on Aim of companies that have Brokers that make forecasts and set price targets that turn out to be completely wrong. It's expensive and I am sure consumes valuable time for little benefit for small relatively simple businesses. I would rather do my own research and not be influenced by highly paid brokers. Regarding presentations, I said it was something that would be a good idea at the AGM. and having it filmed would be a good thing. I thought there had been presentations at the AGM in the past by the way but maybe my memory is wrong. I have never attended one but have read from often positive feedback on this thread from those good enough to post feedback. I am not sure it's a good idea getting Brokers involved with forecasts and promoting the company that way. At the end of the day the share price will take care of itself. If you look at the share price over the last 20 years you will see its been a good performing share. Maybe you or others were unlucky and invested at peaks rather than troughs. That's where I have benefited by having the confidence in my convictions and buying in when the share price is low.

[davidosh] 13/6/2020 10:58

amt....You must be joking or maybe you are related to Mervyn !


You stated....

A presentation at the AGM which should be filmed and put on the website. Of course I would expect a certain level of Corporate Governance but nothing like the level and expense required for a fully listed company. Perhaps filming the AGM presentation and if its not too costly an occasional interview on one of the many online sites might be a good idea.

FACT....Tandem have never put on a presentation at the Agm and nothing has ever been filmed.

About 11 years ago with Andrew Burgess building a stake they agreed to do a presentation in London. It was on the day of a tube and bus strike and only six shareholders made the journey so the directors used that as an excuse not to do any more. It was only me promoting it. I have offered free presentation opportunities but they have declined.....over 100 companies have attended my Mello investor dinners in Beckenham since 2005 and met with hundreds of investors.....not Tandem as they seem to think I have an agenda as a dedicated shareholder......work that one out !?

Tandem are a listed company but they never ever meet with institutional investors in the City or via their broker. There is no broker research or forecasts and they are completely off the radar for most investors even though they pay a small dividend and are profitable. There is no publicity around results even if the company is doing well......the current interest in the company is all surrounding this corporate governance issue.

When was the last time you were offered a presentation by the directors and you claim to have been a shareholder for two decades and that it has been a very successful investment? I would love to hear about your annualised return as nearly all investors in the company that I speak to have been frustrated by the poor return on their investment and up to March last year most were in negative territory. It is only in the past year that we have seen positive share price appreciation and you could argue that investors now see the seeds of change.

[amt] 13/6/2020 10:00

As a general principle I would like to see rules brought in for all quoted companies whereby all meetings between individual shareholders and Directors are minuted and published on the companies website. The costs incurred of holding such meetings should be charged at a standard rate set by the authorities to the individual shareholder. Also all correspondence should be published.

[amt] 13/6/2020 08:23

Graham. The level of Corporate Governance expected for a fully listed company is at a totally different level from an Aim company. The rules and expectation are different. I am very happy with my investment in Tandem and its Corporate Governance. Its given me a good return. I don't see what all the fuss is about. It seems a lot of valuable time has been spent on what may be a technicality or maybe not any breach of the articles at all. The big picture is over a relatively trivial amount of money and anyway the shareholders approved it and its shown in the accounts. I can tell you I do have faith and trust in the way the company has been run. At the end of the day after a couple of decades I have no reason to think otherwise. I do have concerns about their eye being taken off the ball just at a point when the share price was starting to go towards the true value of the company. I should think more than ever at this incredibly difficult time the management will need to be fully concentrated on the day to day running of the business. I should think to write a respond like that and get all the Directors to approve it is a considerable distraction. The timing could not have been worse.
When I invest in any Aim company I go in with my eyes open and with a lot of scepticism. After time though you get to know the good from the bad and Tandem is right up near the best of my investments and if the share price had continued upwards to about 5 quid would have become exceptional

Tandem tell it how it is by the way and not with a load of hype of some Aim companies who are trying to push their share price up. Take a look at Versarian for example. That approach may help a short term jump in the share price. I know sometimes investors have got upset with the Directors for being Conservative with their outlook statements but over time that leads to stability. That's another reason why I trust the Directors with my hard earned money. I expect if you did an analysis of all the Aim companies of a similar market size you would find that Tandem would be one of the best in terms of Corporate Governance and trustworthiness.

[graham1ty] 13/6/2020 08:05

Amt, are you really happy investing your own hard earned money in any AIM company that is so cavalier ? You say some don’t issue updates, or profit warnings. That would be a breach of AIM rules, and illegal. I would never trust a company that acted like that. You are happy with “a certain level of corporate governance”, as if that is discretionary.

The fact that a few might, is no excuse if a company like TND wants to be taken seriously, and get disaffected shareholders of its back ?

[amt] 13/6/2020 07:51

I don't think an FT 100 company like Easyjet has much relevance to the reporting expected from an Aim company by the way. I have several holdings on Aim and some of them don't even bother issuing trading updates or even profit warnings when they happen for example. All you get are interims and finals and some disasters along the way. There is absolutely no comparison. It's a completely different world. My expectation on Aim would be a couple of trading updates every year or more if expectations change materially. Interims and finals of course. A presentation at the AGM which should be filmed and put on the website. Of course I would expect a appropriate level of Corporate Governance but nothing like the level and expense required for a fully listed company. Perhaps filming the AGM presentation and if its not too costly an occasional interview on one of the many online sites might be a good idea.

[swbragg] 12/6/2020 17:04

Dear Tandem ShareholdersI wanted to update you again ahead of the weekend. Thanks for all your support. Yesterday (and again this morning) I wrote to Tandem asking them how they intend to conduct the forthcoming AGM. It's not even 2 weeks away and we have absolutely no idea. It's now crystal clear to me, from all your comments and feedback, that there is deep and long lasting concern from you, the owners, on the Board's attitude to you and on corporate governance. It would be disgraceful if this weren't addressed properly. The Board is hiding and has put up the barricades ahead of the AGM. This AGM isn't a "Business as Usual" one and it will need to incorporate a range of additional features to ensure that Tandem complies with the best corporate governance at this difficult time. To help the Board I sent them the attached FRC guidance notes. They are clear and helpful and state that "organisations should consider exemplary member communication as the key element of good practice". I know that I might be biased but anyone independent would find it hard to hold Tandem up as an "exemplar" in that department. At present excluding shareholders and having written questions to a website is not acceptable, particularly given how the Board has behaved. I even referred the Company to EasyJet as a relevant precedent to help them. I really hope that the Company's newest NED steps up now. He's had plenty of chances since I first spoke with him on 19 May. I'm sure there are very good reasons why he doesn't own any Tandem shares, just like the other "independent" NED since 2010. Maybe it's to show they are truly independent? He has a chance to show that now and stop the Board delaying and denying us as owners good corporate governance. As a Chartered Accountant, he should know all about the FRC and it's guidance and will hopefully take note of its excellent advice here. ThanksSimonhttps://www.frc.org.uk/getattachment/e3224310-c39c-4b48-b56b-cc703936beeb/Updated-QA-AGMs-Best-Practice-Final.pdf

[bwm2] 12/6/2020 16:52

I have done likewse

[kramch] 12/6/2020 16:47

I have instructed my online broker to vote my shares against the reappointment of the chairman and NED's.
I know in Mr Keene's case this is symbolic as he is retiring, but I feel it is time to signal a change.
And I know Mr Taylor has only been in place a short time, but I do not hear of any efforts to change the status quo. The issue of allowing shareholders access to the AGM by Zoom or any of the other tried and tested media being an example.
The conduct of the board for the last 10 years seems to have been to passively obstruct meaningful dialogue with the broader owners of the company, and I think the company and the shareholders are the poorer for it.
We need NED's who's first allegiance is to the owners of the company rather than to their colleagues.

K.

[maddox] 12/6/2020 14:39

Hi amt, you state:

'It's not just for the sake of making money by the way' haha perfect.

As Graham1TY points out above 'TND retained profit, on the balance sheet, £9.1m. Directors pay, last ten years, £6.6m.'

So it seems that it very much about the money and feathering ones own nest with it.

Regards Maddox (keyboard warrior)

[p0rt1] 12/6/2020 13:10

Result of the poll I posted here yesterday. The most flattering take is that 2/63 think the board hardworking and competent.

[p0rt1] 11/6/2020 17:09

"There are not many companies that have managed to ride out this Pandemic successfully"
There are not many companies that have been gifted a huge increase in demand for its core product.

[amt] 11/6/2020 11:44

It looks like shareholders are shooting themselves in the foot. I have been invested for many years and made a decent return on an ever rising share price with large ups and downs along the way. Plus a good dividend although I am more interested in capital growth so not really interested in the income. Now when the share price is in a bull phase there is a danger of derailing it over some minor potential technicality of 20,000 quid. It's all a distraction when there is a huge opportunity for the business to move forward in a booming bike market. Its not just for the sake of making money by the way. The country needs bikes as an essential resource to help it get through this by both keeping people healthy and getting to work. Let alone dealing with all the health and safety issues at an unprecedented time. There are not many companies that have managed to ride out this Pandemic successfully which has brought the economy to its knees. In many cases its about survival. Companies also have a responsibility to its employees which need looking after in such terrible times. Let's get a sense of proportion on what is important in these difficult times and support those who I am sure are doing the best they can to keep things going.

[my retirement fund] 11/6/2020 10:34

Some publicity appearing out there on this evolving story. One would think given the boards obfuscation, there would be a very good case for the delay of the AGM in order for shareholders to have time to consider matters and cast their votes properly. After all so many shareholders simply allow casting votes to default proxy unless they are aware otherwise and there is little time remaining.

[maddox] 11/6/2020 10:08

Hi Simon,

I've instructed AJ Bell to vote my shares.

I've also voted against 5. the reappointment of our other NED Andy Bestwick - he's been on the Board for 10 years. This is far too long and clearly he has shown no ability to positively influence good corporate governance.

6. I've voted against the new NED Taylor - as if he was a force for change and zealot on behalf of Tandem's shareholders - he wouldn't be invited onto the Board.

The voting and proxy form can be found here:



Hopefully you will find the time to stay actively involved in representing Tandem shareholders as there are many improvements that need to be made.

Regards, Maddox

[18bt] 11/6/2020 10:08

That poll's a bit of fun, but I hope it conveys the shareholders' feelings. Mervyn Keene problems has one on PIs to be completed by Board members using words from his previous invectives ...

[cwa1] 11/6/2020 09:39

Clickable in case anyone wants to fill it in:-

[p0rt1] 11/6/2020 09:36

Straw poll: Click on the words that best describe the behaviour of the Tandem board. You may choose multiple items.


IP duplication checks prevent repeat voting.

[18bt] 11/6/2020 09:26

Simon,

Thanks for your work on this and reasoned arguments. Can you just expand on why you intend voting against Mark Taylor? I don't know him from Adam, but he hasn't had much chance to make a difference. I am an NED at a number of companies and I know from experience it can take up to a year to make real change in a company that doesn't like changing.

[swbragg] 11/6/2020 08:55

Dear Tandem ShareholdersThank you so much for your tremendous support. I have been overwhelmed and am so glad that I have "stuck my head above the parapet" to stand up for you and me, the owners of the Company, to ensure good corporate governance. I have clearly "struck a chord" with you and even The Times newspaper! I have only seen sensible comments from concerned shareholders that the Board need to take seriously. As I said clearly in my earlier letters, I know that this is a difficult time. All I want for all our sakes is for Tandem to be a very successful business and we as owners to be treated as such. This isn't an isolated event of the Board's intransigence and behaviour. As the largest shareholder, I have absolutely no interest in frustrating the Company, nor wasting anyone's time or money (least of all mine), but bad corporate governance can't go unnoticed and not be put right. Let's not forget that the Board has breached this and made these ultra vires payments every year since 2011. Even when I pointed this out last year, they've done nothing to resolve it properly. I had tried to do this privately with the Board, but due to their inaction and broken undertakings it left me with no alternative but to speak out. I'm not going to waste much time in commenting on the Board's obfuscations and self serving justifications. I will leave it for you to decide on how open, welcoming and engaging the Board has been to you since you've been an owner of Tandem. However, I would note the following:• I'm not a lawyer, but the Board's delay in circulating my statement doesn't seem to be in accordance with S315 Companies Act 2006, because in their own words they had to "draft a response". I don't see that as an explicit or even implied exception to as "as soon as reasonably practicable" as is clearly required by the law. Having worked in the City I know how quickly statements can get circulated to shareholders and it's not after almost 3 weeks!• S 315 (3) states: "In the event of default in complying with this section, an offence is committed by every officer of the company who is in default.(4)A person guilty of an offence under this section is liable-(a)on conviction on indictment, to a fine;(b)on summary conviction, to a fine not exceeding the statutory maximum."• The Company quotes extensively about the QCA code. It's ironic that it's not even a member, although I do hope the QCA can pursuade them to join now. • My shareholding was 555,796 shares. This the Company know from the undated share register they sent to me. Based on 5,034,091 shares from the Company's website today this represents 11.04%. Yesterday, I purchased a further 20,000 shares taking my holding to 11.44%. • I'm really surprised not to see anywhere in the Board's long letter a clear, categorical, unambiguous and unequivocal statement that they haven't paid NED fees in breach of the Articles since 2011. Perhaps I have missed it? Due to the Board delaying sending out my letter, time is of the essence and all votes need to be put in ASAP. Thank you for your supportSimon