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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 202.00 | 194.00 | 210.00 | 202.00 | 202.00 | 202.00 | 575 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Motorcycles,bicycles & Parts | 26.68M | 674k | 0.1233 | 16.38 | 11.04M |
From Apr 2019 to Apr 2024
TIDMTND
RNS Number : 6396Z
Tandem Group PLC
22 September 2020
Tandem Group plc
(the 'Company' or 'Group')
Interim unaudited results for the six months ended 30 June 2020
The Board of Tandem Group plc (AIM: TND), designers, developers, distributors and retailers of sports, leisure and mobility equipment, announces its results for the six months to 30 June 2020.
Highlights
- Revenue increased approximately 6% to GBP 16,927,000 (2019 - GBP16,029,000) - Gross profit increased to GBP 5,556,000 (2019 - GBP4,911,000) - Increase in operating profit to GBP1,478,000 (2019 - GBP580,000) - Profit before tax after non-underlying items was GBP1,409,000 (2019 - GBP370,000) - Net profit for the period was GBP1,141,000 (2019 - GBP155,000) - Earnings per share 22.7p (2019 - 3.1p) - Net assets increased to GBP 15,266,000 (2019 - GBP12,446,000) - Cash and cash equivalents as at 30 June 2020 of GBP6,322,000 (2019 - GBP3,740,000)
Commenting on the results, Chairman Steve Grant stated "these are a strong set of results despite the COVID-19 challenges faced by the Group during the period, with an increase in revenue and a significant increase in profit reflecting the hard work and dedication of our loyal staff".
CHAIRMAN'S STATEMENT
Results
Group revenue in the six months to 30 June 2020 increased by approximately 6% to GBP16,927,000 compared to GBP16,029,000 in the six months to 30 June 2019.
There was an increase in gross profit from GBP4,911,000 to GBP5,556,000. Gross profit margin also increased to 32.8% compared to 30.6% in the prior period principally as a result of strong demand for a number of products in limited supply and the change in the mix of business from 'FOB', where stock is shipped from the Far East, to 'domestic', where we warehouse stock in the UK prior to despatch to customers.
Operating expenses decreased from GBP4,331,000 to GBP4,078,000 in the six months to 30 June 2020 broadly as a result of a reduction in third party warehousing requirements, reduced travel expenses and wage costs.
As a result of the above, there was a significant increase in operating profit to GBP1,478,000 compared to GBP580,000 in the prior year period.
Finance costs were GBP69,000 in the six months to 30 June 2020. This compared to GBP210,000 in the prior period. There was a fair value credit for foreign currency derivative contracts of GBP66,000 reflecting the part reversal of the year end position which compared to a charge of GBP54,000 in the prior period. This is shown in non-underlying items. Non-underlying items also included finance costs of GBP100,000 in respect of the pension schemes against GBP85,000 in the six months to 30 June 2019.
The profit before taxation after non-underlying items for the period was GBP1,409,000 compared to GBP370,000 in the six-month period to 30 June 2019.
There was a tax charge of GBP268,000 during the period compared to GBP215,000 in the prior period. This reflected the increased level of profitability.
Net profit for the period to 30 June 2020 was GBP1,141,000 compared to GBP155,000 in the six months to 30 June 2019.
Basic earnings per share in the six months to 30 June 2020 was 22.7 pence per share compared to 3.1 pence per share in the prior period.
Net assets at 30 June 2020 increased to GBP15,266,000 against GBP12,446,000 at 30 June 2019.
Cash and cash equivalents were GBP6,322,000 at 30 June 2020 which compared to GBP3,740,000 at 30 June 2019. This reflected the profit for the period and also the abnormally low inventory and working capital levels.
Net cash after borrowings was GBP5,289,000 against net debt of GBP2,006,000 at 30 June 2019.
Trading update and outlook
As we reported in our AGM Statement on 25 June 2020, despite the many challenges during the period, the revenue and profitability growth over the prior year period has been encouraging.
Although Frozen 2 and Spider-Man were ahead of the prior year period, the majority of our licensed ranges were behind. This was principally as a result of cautious FOB buying, where product is purchased in full containers and shipped direct from the country of origin, by national retailers. FOB revenue from other licences including Peppa Pig, Batman, Disney Princess, Paw Patrol and Thomas were behind the prior year although domestic business was significantly ahead.
Despite lower FOB orders, domestic sales of Kickmaster football training and Hedstrom outdoor play products were also well ahead of the prior year.
The Ben Sayers brand performed strongly during the second quarter following the reopening of golf courses in May .
Although the bicycle business was more challenging at the beginning of the year, the impact of COVID-19 changed the landscape. From the second quarter onwards, revenues were at exceptional levels with significant growth with both independent bicycle dealers (IBD) and national retail customers. Our greatest challenge has been to remain in stock and to maintain timely supply to our customers.
Our range of Squish bikes has continued to increase market share and was well ahead of the same period in the prior year. In addition, there was a strong demand for our Dawes and Claud Butler ranges since the period of lockdown began, benefitting many of our IBD customers.
We are particularly excited about the growth in ebikes and growth potential of escooters. We continue to invest in both ranges utilising our own bicycle brands Dawes and Falcon and our scooter brands Li-Fe and Wired.
We are very pleased to report a strong performance from our B2C online businesses, with revenue from many of our outdoor product ranges including spas, trampolines, outdoor play and football goals ahead of the prior year. The combination of lockdown and particularly good weather during the spring months had a very positive impact.
As we previously reported, the ongoing investment into this part of the Group contributed to increased visitor traffic and revenue from our own websites. There was an increase in the number of visitors from both the Garden & Camping ( www.garden-camping.com ) and the At Home Comforts by Jack Stonehouse ( www.jackstonehouse.com ) websites of 120% and 180% respectively which resulted in significant revenue growth from these channels.
The supply chain, particularly for bicycles, remains under pressure with strong global demand on suppliers and increased lead times. Nevertheless, stock availability has improved significantly during September and is expected to continue into the final quarter in the lead up to Christmas.
National retailers continue to be cautious in their FOB buying decisions, impacting on Group revenue which fell behind the prior year during the summer period. Stock availability is also an issue which is gradually improving. However, margin from domestic business has remained strong up to and since the half year, coupled with lower overheads as a result of the COVID-19 impact.
Our outlook for the remainder of 2020 continues to be broadly positive, although at this stage it remains difficult to confidently forecast the full year result . Despite the FOB challenges, domestic demand remains encouraging.
Dividend
Due to the excellent performance of the Company in the first half of the year we are doubling the interim dividend to 3.12p per share (2019 - 1.56p per share) payable on 10 November 2020. Our dividend strategy continues to be reviewed but it remains our intention to pay a progressive dividend where profits permit. The ex-dividend date will be 8 October 2020 and the record date 9 October 2020.
Board changes
As previously announced, Mervyn Keene and Andy Bestwick recently retired from the Board with Steve Grant appointed as Non-Executive Chairman and Jim Shears as Group CEO.
Subject to the completion of normal regulatory due diligence checks, we have appointed Juliet Barratt to the Board as a Non-Executive Director. We believe that Juliet's B2B and B2C product, sales and marketing experience as well as the achievements in her business career to date will complement and enhance the existing skills on the Board.
Investor presentation
The interim results presentation for investors will be posted on the Company's website. Investors are encouraged to contact the Company with any questions about the business by telephone, using the website or by emailing our dedicated shareholder email address investorrelations@tandemgroup.co.uk .
Shareholder benefits
There is a facility for shareholders to benefit from an exclusive 10% discount code on our garden, home and leisure websites www.garden-camping.com , www.athomecomforts.co.uk and www.proriderleisure.com by entering the discount code "SH10" on the checkout page.
Steve Grant
Chairman
22 September 2020
CONDENSED CONSOLIDATED INCOME STATEMENT
For the 6 months ended 30 June 2020
Hot Features
Premium
6 months ended 30 June 2020 6 months ended 30 June 2019 Unaudited Year ended 31 December 2019
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 16,927 - 16,927 16,029 - 16,029 38,837 - 38,837
Cost of
sales (11,371) - (11,371) (11,118) - (11,118) (27,049) - (27,049)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Gross profit 5,556 - 5,556 4,911 - 4,911 11,788 - 11,788
Operating
expenses (4,078) - (4,078) (4,331) - (4,331) (8,755) - (8,755)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Operating
profit
before
exceptional
items 1,478 - 1,478 580 - 580 3,033 - 3,033
Exceptional
items - - - - - - - (29) (29)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Operating
profit
after
exceptional
items 1,478 - 1,478 580 - 580 3,033 (29) 3,004
Finance
costs (35) (34) (69) (71) (139) (210) (182) (315) (497)
Profit
before
taxation 1,443 (34) 1,409 509 (139) 370 2,851 (344) 2,507
Tax expense (268) - (268) (215) - (215) (425) (48) (473)
Net profit
for the
period 1,175 (34) 1,141 294 (139) 155 2,426 (392) 2,034
============== ============== ============== ============== ============== ============== ============== ============== ==============
Pence Pence Pence
Earnings per
share
Basic 2 22.7 3.1 40.5
============== ============== ==============
Diluted 2 22.0 3.0 39.6
============== ============== ==============
All figures relate to continuing operations.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 30 June 2020
6 months
6 months ended
ended 30 June Year ended 31 December
30 June 2020 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit for the period 1,141 155 2,034
Other comprehensive income:
Items that will be reclassified subsequently to profit and loss:
Foreign exchange differences on translation of overseas
subsidiaries 50 13 (24)
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on pension schemes - - 65
Movement in pension schemes' deferred tax provision - - 24
------------- --------- ----------------------
Other comprehensive income for the period 50 13 65
Total comprehensive income attributable to equity shareholders of
Tandem Group plc 1,191 168 2,099
============= ========= ======================
All figures relate to continuing operations.
CONDENSED CONSOLIDATED BALANCE SHEET
As at 30 June 2020
At 31
At 30 June At 30 June December
2020 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP '000 GBP'000
Non current assets
Intangible fixed assets 5,532 5,574 5,542
Property, plant and equipment 3,536 3,458 3,590
Deferred taxation 1,931 1,776 1,931
---------- ----------- ---------
10,999 10,808 11,063
Current assets
Inventories 2,436 5,735 4,709
Trade and other receivables 6,524 7,123 5,443
Cash and cash equivalents 6,322 3,740 5,037
---------- ----------- ---------
15,282 16,598 15,189
Total assets 26,281 27,406 26,252
========== =========== =========
Current liabilities
Trade and other payables (6,751) (6,240) (5,507)
Borrowings (203) (4,736) (2,394)
Derivative financial liability held at fair value (40) - (106)
Current tax liabilities (827) (304) (657)
---------- ----------- ---------
(7,821) (11,280) (8,664)
Non current liabilities
Borrowings (830) (1,010) (797)
Pension schemes' deficits (2,364) (2,670) (2,480)
---------- ----------- ---------
(3,194) (3,680) (3,277)
Total liabilities (11,015) (14,960) (11,941)
========== =========== =========
Net assets 15,266 12,446 14,311
========== =========== =========
Equity
Share capital 1,503 1,503 1,503
Shares held in treasury (245) (247) (247)
Share premium 294 286 286
Other reserves 3,670 3,657 3,620
Profit and loss account 10,044 7,247 9,149
---------- ----------- ---------
Total equity 15,266 12,446 14,311
========== =========== =========
CONDENSED Consolidated statement of changes in equity
As at 30 June 2020
Shares Capital
held Share redemption Revaluation Profit
Share in premium Merger reserve reserve Translation and loss
capital treasury reserve reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2019 1,503 (247) 286 1,036 1,427 530 651 7,222 12,408
Net profit for
the
period - - - - - - - 155 155
Retranslation
of
overseas
subsidiaries - - - - - - 13 - 13
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
Total
comprehensive
income for
period
attributable
to equity
shareholders - - - - - - 13 155 168
Share based
payments - - - - - - - 15 15
Dividends paid - - - - - - - (145) (145)
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
Total
transactions
with owners - - - - - - 13 25 38
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
At 30 June 2019 1,503 (247) 286 1,036 1,427 530 664 7,247 12,446
Net profit for
the
period - - - - - - - 1,879 1,879
Retranslation
of
overseas
subsidiaries - - - - - - (37) - (37)
Net actuarial
loss
on pension
schemes - - - - - - - 89 89
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
Total
comprehensive
income for
period
attributable
to equity
shareholders - - - - - - (37) 1,968 1,931
Share based
payments - - - - - - - 13 13
Dividends paid - - - - - - - (79) (79)
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
Total
transactions
with owners - - - - - - (37) 1,902 1,865
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
At 1 January
2020 1,503 (247) 286 1,036 1,427 530 627 9,149 14,311
Net profit for
the
period - - - - - - - 1,141 1,141
Retranslation
of
overseas
subsidiaries - - - - - - 50 - 50
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
Total
comprehensive
income for
period
attributable
to equity
shareholders - - - - - - 50 1,141 1,191
Share based
payments - - - - - - - 9 9
Exercise of
share
options - 2 8 - - - - - 10
Dividends paid - - - - - - - (255) (255)
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
Total
transactions
with owners - 2 8 - - - - 895 955
--------- --------- -------- --------- ---------- ------------ ----------- ---------- ----------
At 30 June 2020 1,503 (245) 294 1,036 1,427 530 677 10,044 15,266
========= ========= ======== ========= ========== ============ =========== ========== ==========
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 June 2020
At 31
At 30 June At 30 June December
2020 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP '000 GBP'000
Cash flows from operating activities
Profit for the period 1,141 155 2,034
Adjustments:
Depreciation of property, plant and
equipment 55 69 203
Amortisation of intangible fixed assets 10 11 45
Loss/(profit) on sale of property,
plant and equipment 3 (1) -
Contributions to defined benefit pension
schemes (218) (219) (437)
Finance costs 69 210 497
Tax expense 268 215 473
Share based payments 9 15 28
------- ------- -------
Net cash flow from operating activities
before movements in working capital 1,337 455 2,843
Change in inventories 2,273 (1,485) (459)
Change in trade and other receivables (1,081) (2,726) (1,046)
Change in trade and other payables 1,244 1,977 991
Cash flows from operations 3,773 (1,779) 2,329
Interest paid (33) (96) (182)
Tax paid (98) (54) (90)
Net cash flow from operating activities 3,642 (1,929) 2,057
======= ======= =======
Cash flows from investing activities
Purchase of intangible fixed assets - (5) (7)
Purchase of property, plant and equipment (22) (48) (63)
Sale of property, plant and equipment 18 1 -
Net cash flow from investing activities (4) (52) (70)
======= ======= =======
Cash flows from financing activities
Loan repayments (196) (203) (407)
Finance lease repayments (15) (12) 115
Movement in invoice financing (1,947) 1,221 (1,257)
Exercise of share options 10 - -
Dividends paid (255) (145) (224)
Net cash flow from financing activities (2,403) 861 (1,773)
======= ======= =======
Net change in cash and cash equivalents 1,235 (1,120) 214
Cash and cash equivalents at beginning
of period 5,037 4,847 4,847
Effect of foreign exchange rate changes 50 13 (24)
------- ------- -------
Cash and cash equivalents at end of
period 6,322 3,740 5,037
======= ======= =======
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, distribution and retail 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 2020 (including the comparatives for the period ended 30 June 2019 and the year ended 31 December 2019) were approved by the Board of Directors on 22 September 2020. 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 2019, 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. The audit report in relation to the financial statements for the year ended 31 December 2019 includes an emphasis of matter paragraph drawing attention to note 1 which refers to the global Coronavirus pandemic.
This interim financial information has been prepared using the accounting policies set out in the Group's 2019 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 2020 is based on the actuarial valuation under IAS19 at 31 December 2019 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 2020.
2 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:
Year
6 months 6 months ended 31
ended ended December
30 June 2020 30 June 2019 2019
GBP '000 GBP'000 GBP'000
Profit for the period 1,141 155 2,034
============= ================ =========
Number Number Number
Weighted average shares in issue used
for basic earnings per share 5,031,498 5,026,091 5,026,091
Weighted average dilutive shares under
option 151,646 92,590 112,889
Average number of shares used for diluted
earnings per share 5,183,144 5,118,681 5,138,980
============= ================ =========
Pence Pence Pence
Basic earnings per share 22.7 3.1 40.5
============= ================ =========
Diluted earnings per share 22.0 3.0 39.6
============= ================ =========
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR).
Enquiries:
Tandem Group plc
Jim Shears, CEO and Company Secretary
Telephone 0121 748 8075
Nominated Adviser
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Telephone 020 7213 0880
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
IR LBMFTMTTTBPM
(END) Dow Jones Newswires
September 22, 2020 02:00 ET (06:00 GMT)
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