Tandem Share Discussion Threads

[castleford tiger] 30/3/2022 10:34

One or two people seem very negative on Tandem.
Lets look what we know.

Sales were up in the first quarter compared to the year prior to last.
2021 was always a strange one as so many goods arrived late in the year to be dispatched early in the first 10 weeks.
The remainder of the year saw sales tick along nicely.

Tandem is not some highly valued asset light company.
current years earnings are forecast at 56.7p giving a forward p/e of 7
The business has net cash and property worth 7.4m

This means half the market cap is in cash and property.

Significant growth in on line sales is expected again and the home and garden range is pulling customers from other retailers.

If as i expect the warehouse in northants closes and moves into the new building there will be savings of at least 1/2 million (10k a week)

Next year could see the liberalization of the uk e scooter market to follow other European countries.

Nobody can escape the short term worsening in customer finances but with the costs of fuel increasing there may well be growth again in bikes etc. Time will tell.

Running a business i am all too aware that sales can be lumpy and external factors will always play a part in the short term possibly affecting sales or costs.

Shipping rates are finally falling and the building we own generates its own electric supply so sparing the business from a big increase in costs.

These are bumps along the road..........and yes traders can buy and sell a few shares to try and judge this.
However getting a bigger stake takes years and you have to ride these economic issues if you own or part own a business.
Holiday companies and big ticket items will be hit first if consumers get short of cash.
That said many are sitting on Covid piles of cash saved during the last 2 years.

I admire the honesty of the BOD and like David i think the new forecast gives us room to upgrade during the year.

I have bought this week and i am looking at more in the next few days

best
Tiger

[davidosh] 30/3/2022 10:06

I am not suggesting that there are not tough times ahead and certainly there will be a squeeze on consumer spending but that is where families become careful and spend wisely.

It will lead to various decisions being made and it is far cheaper for families to go off on bike rides together than jump in a car, travel miles and spend on a visitor attraction.

There will also be more spend on garden equipment as people will return to BBQs in their gardens rather than dining out and spending at restaurants.

The move to buying e-bikes is not going to slow down and Tandem have a good offering and as for outdoor leisure the brands including golf (where Ben Sayers is the cheapest option) are doing very well.

[hpcg] 29/3/2022 23:54

I really like Tandem as a company, what they do, and their business plans, but surely people, read the economic runes. Sunak is going for austerity, UK trade is compromised, mortgages going up, council tax up, national insurance up, energy bills up, food costs up, real incomes squeezed, how can any consumer discretionary company prosper?

[davidosh] 29/3/2022 22:04

Just to mention that the current year to date sales may be down but they were tough comparators last year if you remember with huge orders coming in to supply bikes and outdoor equipment in readiness for the staycations.

I suspect with the early sunshine in March this year there is every chance that demand will increase from here and some of the orders will increase and there will be an element of catch up.

I am hoping they have guided low so that forecasts can be beaten and would certainly settle for about 60p eps this year and back to growth next year when all the warehouse and logistics savings will also improve margins.

[gaffer73] 29/3/2022 18:37

Very detailed results I thought, makes a change from the norm.

[actscap] 29/3/2022 16:42

I also thought the honesty and transparency was reassuring. This is especially important to me when investing in AIM businesses.

[actscap] 29/3/2022 16:39

Couple of other bits from the update I thought were positive, beyond the knowm store upgrades and warehouse expansion.....1. Profit related pay scheme A profit related pay scheme was introduced in the year to enable staff to participate further in the success of the Group.2. Click and collect Plans to introduce the bicycle 'click and collect' functionality for bicycle purchases to be fulfilled by participating IBDs which was delayed in 2021 due to stock availability issues.

[actscap] 29/3/2022 16:38

The long term trend increase in cycling journeys and ebike use is here to stay.

[actscap] 29/3/2022 16:32

https://www.bikebiz.com/tfls-cycle-hire-scheme%E2%80%AF-santander-cycles-celebrates-highest-number-of-february-hires-ever/They?are also working to introduce around 500 electric bikes into the scheme from this summer.Will Norman, London's walking and cycling commissioner, said: "What an incredible, record-breaking six months it has been for Santander cycles. I'm delighted that 750,000 rides took place in February, the highest ever number of rides in that month, echoing the wider trend of ever-increasing numbers of Londoners choosing to cycle.

[jeffian] 29/3/2022 16:10

Yes I did a double-take at that.

Does that put us above or below Yemen?

[rcturner2] 29/3/2022 15:41

"UK domestic economy is one of the worst in the world"

I don't know how people who write this sort of nonsense manage to tie their shoelaces.

The UK economy is up there as one of the best in the world and leads in many sectors including technology, education and medicine. You've heard of the Oxford vaccine I assume?

Must be a Guardian reader they love to run this country down.

[bwm2] 29/3/2022 15:14

they are now, 10k purchase

[bwm2] 29/3/2022 13:17

Less than nav. I have added but not showing

[gaffer73] 29/3/2022 12:01

Yes, but the share price has fell to reflect that and at 16m Vs 25 it's not bad especially when 2020 was 5m.

[hpcg] 29/3/2022 11:57

UK domestic economy is one of the worst in the world, so this is just the first of several profit warnings. The only positive at this time is container rates from China have started to decline.

[eezymunny] 29/3/2022 11:46

But what will future earnings be with order book down 40% gaffer? That's what the market is inevitably worrying about, no?

[gaffer73] 29/3/2022 11:41

"Basic earnings per share was 73.8 pence per share for the year ended 31 December 2021 compared to 68.5 pence per share in the year ended 31 December 2020. Diluted earnings per share was 70.1 pence per share compared to 64.7 pence per share in the prior year." Looks pretty good to me.

[zho] 29/3/2022 11:35

Comment from Simon Thompson:

[my retirement fund] 29/3/2022 08:11

Yes please just upload it to https://snipboard.io/ and post the link here. I watch here with interest but right now I know the unusual lock down driven opportunity has been and gone, inflation is squeezing margins, there may even be a few months worth of over supply now generally making it difficult to pass on the inflation and it's far to early to call the bottom.

[onjohn] 29/3/2022 06:40

Long way down to 200

Next warning will take it there

[castleford tiger] 29/3/2022 05:34

Happy to do that would you like the screen shot sending or posting?
I will be buying more shares here as the valuation is unfair and having run business’s for many years I understand the journey often has twists on the road.
I still see eps of 100p next year if we move to one site.
All the best

[my retirement fund] 28/3/2022 18:04

CT, I don't feel it was lucky tbh, but appreciate you may have a different take. I don't drink these days so if you would like to make an early donation to the red cross's fantastic efforts that are involved in the crisis in Ukraine instead for me, that would be really excellent and highly appreciated.

[balcony] 28/3/2022 16:41

CT-At least you won in the Rugby at the weekend.

[balcony] 28/3/2022 16:41

CT-At least you won in the Rugby at the weekend.