Tandem Share Discussion Threads

[scott84] 22/10/2010 13:18

lol

I read the thread on results day and thought "GG is going to buy a load"
because he was so downbeat, was so obvious yet i forgot to act on it :-))

[neverforget] 22/10/2010 13:11

david have a look in the cash flow statement for the last full year
Payment to acquire own shares £179k £203k
They are busy trying to get some of the smaller shareholders off the register, a friend received a letter stating that they are offering commission free dealing. They havent had much luck so they have increased the shareholding threshold, shares to be held in treasury
Alunmorris unfortunately not only applies to shareholders with small holdings.

[alunmorris] 22/10/2010 12:56

>They have in fact bought shares back every year for about the last three years,

What, without RNSing the buybacks? Is that legal?

>and I can confirm that they are once again going for the small shareholders through capita

How does that work? Might I receive a phone call from Capita?

[davidosh] 22/10/2010 11:56

neverforget....Not in the market and no announcement for over a year on any cancellations gave me the answer without ringing the company.

[neverforget] 22/10/2010 11:22

It is most unusual for you to ask the question whithout checking with the company first. They have in fact bought shares back every year for about the last three years, and I can confirm that they are once again going for the small shareholders through capita

[davidosh] 22/10/2010 11:12

Since when was the company actively trying to buy its shares back ??

Last time I remember seeing that was in the consolidation but that was only by default and certainly not aggressive in the market and was over a year ago. Here is the last RNS...

[neverforget] 22/10/2010 07:42

supreme mo the Sayers brand does not fit into the portfolio and this is the point I have stated before that I believe that the business should be disposed of. The issue here is one of who would actually buy it? There are currently no golf manufacturers consolidating so that would only leave one of the retailers with an own name brand. You could say Argos has Hippo, Sports World has Dunlop. the only one that I could think of out of hand would be JJB, but they are not in a position to buy anything. This is one of my grandest concerns with tandem, whether they are actually capable of making any value enhancing acquisitions. You need only look at their record
Pot Black Failed
Hedstrom Failed
2 Wheel Trading Failed
Ben Sayers Vastly overpaid (Failed)
MV a success
Not a very good record in my humble opinion

Also I would like to state here that the company is actively trying to buy its shares back which would to me be the most logical explanation of why they issued the slightly downbeat statement. After all it would be rather foolsh to overpay wouldnt it?

[supreme mo] 21/10/2010 21:36

Ha ha very funny.

GG,

I understand what you mean about TND operating on 8x earnings and in line with sector average, but do you not agree there are a load more other companies trading on aim(and other markets) valued much higher than TND with far less earnings and assets?

What are anyones thoughts on selling Ben Sayers? - how much value does this add as a brand? - it seems to be a round peg in a square hole in terms of TND strategy as far as I see it. (sorry if this seems a daft question to some)

Does anyone know of any more brand developments or of any potential acquisitions which could be made by TND?

[greengiant] 21/10/2010 13:21

pps - have to go, the wife is dragging the laptop from my
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[greengiant] 21/10/2010 13:20

ps - no need for the directors to buy, because there are no shares in the market.

gg

[greengiant] 21/10/2010 13:20

It wouldn't be a very exciting book!

gg

[davidosh] 21/10/2010 13:05

PS - took the opportunity to buy more today to edge me closer to my 20% mark.


gg....I can read you like a book.

It is also slightly annoying as I was about to pick a few up below £1.40 myself

[greengiant] 21/10/2010 13:05

Oh and in case I haven't said it -

Well done Tandem (all employees) on a good set of numbers in difficult times.

gg

[greengiant] 21/10/2010 12:55

yoyoy,

Frost here, but was all gone by 10:00, replaced by blue skies and sunshine.

Never know about Pension Liabilities, too many factors affecting it, but would hope that it has now settled.

As for investment, happy to see short term increases, but this also has to be matched by revenue growth. That is what I want to start to see now, no more drifting.

gg

PS - took the opportunity to buy more today to edge me closer to my 20% mark.

[yoyoy] 21/10/2010 12:01

gg,

Hard frost here 1st thing but lovely and warm again now. We have petrol but not sure for how long.


re TND. more costs to come in the 2nd half.

"We are investing in human resources, infrastructure and the additional brand and marketing activities necessary to support our sustainable growth objectives in the medium to long term."

and no further provision made for the pension liability. This will come in the 2nd half.

[greengiant] 21/10/2010 08:44

It will be interesting to see if the directors are willing to buy any shares after all we have a

* Finance Director
* 2 x Non Execs
* MD

Who haven't bought shares in the market for an awful long time (or if ever)

Anyway, enjoying the sunshine and warm temps here, even if I haven't got any petrol
:-)
gg

[neverforget] 21/10/2010 08:36

sold some of my holding in the 150s because I thought it had got a bit on the expensive side. Not over impressed by the results and I agree with grahamty that the statement is in the "old" Tandem style. Why do I say this? Well, consider this statement:
"As previously stated, sales in the sports, leisure and toys sector from our Ben 10 license were behind the exceptionally high levels experienced in the same period last year. Furthermore, Thomas sales were also down following the license for the battery operated train reverting to a new master toy licensee"

Yet turnover at the half year mark was £1.1m ahead and at 37 weeks it was up by £1m, so it basically says that it is in line with last year. So tandem in true tandem fashion downplay this by adding 4 lines of negative comments. Also, consider bikes, it has moved from £1m to £1.3m down which is wholly down to Asda deal and in line with their £2m down prediction.
Very disappointed with the working capital movements especially the debtors line and this is something that needs to be addressed. But most of all the greatest worry here is the lack of growth and I dont think that this company has the ability to grow. They have been terrible at acquisitions and I dont think they have the ability to add shareholder value so I sold anothe 5k yestersay

[davidosh] 21/10/2010 00:08

This is good light reading about Chris Boardman the Olympian gold medal winning cyclist who has set up his own bike company....



Interesting bit...

What's the most difficult situation you've faced with boardman bikes?


We know that our products are as good as any out there on the market, but the biggest hurdle is letting people know about it. Up until now we've been growing step by step and now it's time to make the big jump. We need a big face (apart from me of course!) behind the brand.

But we're buoyed by research that the demand internationally is good. We also have to deal with people's changing shopping habits and the growth of internet shopping.


Nice plug for Tandem....

Are you into stocks and shares?

Yes, I really like a small Aim listed company called Tandem who actually have some great bike brands that many will remember as a child. However generally we prefer to invest in property and we've done really well over the years, including a really nice apartment we've still got in Chester. I leave it up to Sally as to where's best to put money into. She's got really good personal judgement as to what makes a better long-term investment.


LOL.....ok I know I slightly edited that but it made me smile !!

[grahamty] 20/10/2010 13:49

Andrew agree with most of that. Over the last 2/3 years "chugging along" is actually quite a result. For any company to remain profitable, improve their balance sheet and avoid a catastrophic ( 25% drop on the day) profit warning is in fact exceptional. As long as they keep an eye on working caital, keep to their knitting and keep us in touch, then I am happy to wait for more high profile times. OK there may not be much action until the economic uncertainty is out the way, but well done the Board for keeping the good ship Tandem on course. This remains very cheap.

re this statement: my only question would be, is this Tandem falling back on the sucking in of teeth "we're all doooomed" or is it a genuine and open current trading statement ? My naive wish is that they were a tiny bit worried about the share price running away, wanted a period of share price stability and have been deliberately a little downbeat. Come Christmas, when they have a much better handle on how much will shift, the true picture will appear. I have always said it is better to be cautious then beat epectations, rather than overegg and disappoint. I had sold 5000 at 161.3p and am very happy to have bought them back at 141.3p. Very happy at these levels. S

[greengiant] 20/10/2010 13:19

yoyoy

Add back exceptionals and you get 4 years flat, and I would expect another this year of between £1m - £1.2m

taffee / davidosh - The company has steered itself through the stormy waters of the past 2 years and has done very well, in part I agree with taffee's comment that the company is just "chugging along". Revenues have remained flat for 5 years and profit have remained flat for 5 years (adding back exceptionals)- that unfortunately is static. Yes Net Assets have improved, the Balance Sheet is stronger and we are now receiving a dividend (should be around 3p total which equates to a yield of around 2%). But the simple fact is that the market will not value this company any higher unless it shows it can grow top line and bottom line - period. You are not going to hold this share because of its dividend yield!

As for disappointing - historically communication has been poor, the improvement has been great. I would rather know that September and October have been tough months, rather than burying my head.

As for taking this private - I go back to the basic function of a market, to raise money and to allow the buying and selling of shares. If the company is not going to use the market to raise funds (acquisition growth) then take it private and save the costs. After all, you would not have the listing costs, 2x non execs and possibly even get away with not having a Chairman, no small pesky shareholders to deal with and keep informed and less visability with regard to customer negotiations.

To me the results were overall as expected, disappointed with the big jump in WC and the negative cash.

gg

[davidosh] 20/10/2010 11:56

taffee....the company is in a strong financial position when others around it are floundering. The company has just announced a dividend and as shareholders over the past two years through the downturn we have had excellent growth in assets and our equity.

Now you want a buyout ???

I prefer picking up some quality assets on the cheap or a bid at £2.50 plus and your option is the last thing I want or would consider.

[taffee] 20/10/2010 11:36

look....the company is chugging along making a bit of money and keeping people employed....that's the good bit.

My point is that the stockmaqrket doesn't get excited about 'chugging along'

Best bet if for a buyout and refloat later......tandem has a history of disappointing

[yoyoy] 20/10/2010 11:15

FY comparables

2007 0.65m
2008 1.11m
2009 0.59m
2010 1.02m


H2 cannot thereforehave the same consistency.

[davidosh] 20/10/2010 10:23

Geeeezzz guys..no need to slit your wrists just yet !!

The operating profit and PBT have been growing steadily over the last four years for the H1 comparables...Take PBT for example

2007...330k

2008...450k

2009...550k

2010...650k


The rolling PBT including H2 last year is now over £1.1m and the net assets are up to £7.7m an increase of 10% in six months. The outlook near term may be slightly mixed but looks promising for 2011 in my view.

I think the new management deserve praise as these are still difficult times for the economy and this is a business that can change month by month but overall is going in the right direction.

We asked for better communication so we cannot complain when they tell us the way in which trading can differ in just a few weeks. If there are record orders in January and the outlook great in a end of year closing update in February you will all be bouncing up and down and shouting from the rooftops again. I think patience is needed at least until the next AGM when we can fully assess a year of change.

[greengiant] 20/10/2010 08:54

sm - I actually disagree with you, if the company makes £1m then it is on a multiple of 8x. This is right for the sector and probably a bit high for a company which has not shown ANY profit growth for 5 years. Also, the cash base is dependent on the movement in working capital, which is why we see a negative cash position again at the half year.

taffee - the share price movement tells you that this hasn't moved anywhere. In fact it has been a significant mover this year. That, however, is due entirely to the lack of liquidity and the demand for shares (a 19% shareholder). Is the share price cheap - see above.

I will reiterate here again for the umpteenth time (and maybe one day someone will listen to me :-)) I remain unconvinced that a company can successfully focus on a Toy business and a Bike business. This is what management have to show and they have had significant time to put the building blocks in place, the next year will determine whether this is a management team which is capable of delivering growth.

Should the company be listed? There are pro's and con's but if the company is not going to use the market to raise capital, I too question it.

gg