Tandem Share Discussion Threads

[neverforget] 04/1/2011 12:16

just tried to buy some on line and could only get 100 shares. This despite what looked like a 10000 sell earlier today. Why has the company not issued a revised broker note? and why have they not included any figures beyond 2010? To me if the company issued a broker note and undertook a strategic review then it is likely that they prepared numbers far in excess of just the current year.

[neverforget] 04/1/2011 07:59

gg, nice research also very spoken to x and he was impressed with what you told him and would be very happy moving things forward with you

[greengiant] 03/1/2011 10:21

Davidosh,

The additional non exec is not for an additional position but for a replacement. If the company does not believe that I would add any value then fair enough, I have no issue with that. However, I need to see directors who are willing to

1) Drive growth
2) Ensure pay is linked to performance.

Now if you look at the performance of the company against its peers in the Bike sector based on 3 year increase in turnover.

Giant 8.84%
Specialized 26.87%
Bromptons 70.25%
Trek 52.84%
Pashley 25.71%
Raleigh 11.44%

And Tandem's performance? Well, at best you can say that their performance over the past 3 years (including the current year projected) is going to be flat. This means that in real terms the company has moved backwards seeing that cost price inflation (increased sales prices to offset cost inflation) has been around 15%.

But sales isn't everything is it? Looking at Profit:

Giant 19.16%
Specialized 23.28%
Bromptons 40.98%
Trek 156%
Pashley 6.48%
Raleigh 35.14%

And Tandem? Based on their last forecast about a 40% reduction, but again, at best flat considering 1st Half performance.

But surely for such stellar performance, the directors of all these high performing companies must be paid way in excess of the directors of Tandem – or are they?

Giant £163k (2 Directors – Avg £81.5k)
Specialized £229k (2 Directors – Avg £114.5k)
Bromptons £163k (4 Directors – Avg £41k)
Trek 156% - Unknown
Pashley Unknown
Raleigh £651k (7 Directors – Avg £93k)

And for Tandem? Well, we all know.

This is the reason, why I want to know EXACTLY what the bonus payments are based on. Every shareholder has that right, and if management don't want to explain it, then it shows to me, that they cannot justify it.


Grahamty,

With effect to working capital and Chinese new year, here are the comparables for cash and stock (2008/09 being CNY)

2007/08 £89+
2008/09 (£468)
2009/10 £1190+

Stock

2007/08 £5582
2008/09 £7583
2009/10 £4991

gg

[greengiant] 03/1/2011 07:26

neverforget,

will call you en route

gg

[greengiant] 03/1/2011 07:26

dd,

will post more in a couple of hours, just leaving for airport.

gg

[davidosh] 02/1/2011 21:10

neverforget....You can always email me the details as we need a new non exec or two at another company (MUBL) and extensive retail experience there would not go amiss. Are TND really keen to have another NED ? We have three already which considering we only had one until seven months ago is quite an achievement ?

[neverforget] 02/1/2011 16:49

gg, can you call 2morrow and I will pass on details of NED looking for new position. Well known with extensive retail experience.

[greengiant] 30/12/2010 15:29

grahamty,


Rubbish weather today.

The cash position got worse at the half year mark and went from Net Cash of £1.2m at 31 Jan to a Net Overdraft Position as at 31 July of £300k. Now this is down to timing of working capital, but dont expect it to be better for the end of year. This is because Chinese New Year falls early again, so expect the company to have high working capital levels and higher overdraft levels. This happened a couple of years ago and you can see the impact.

My issue remains solely on the Directors remuneration. I want to know on WHAT basis the bonus is paid. It is that simple. After all, how can us as owners of this company measure HOW the directors are performing if we dont know WHAT the metrics are? It should be simple, get a bonus if you outperform your upper quartile peers. You should not be entitled to a bonus if you are underperforming your peers who are facing the same issues as you. I cant understand why the Board find this concept so difficult.

Anyway, I am working on getting the Board to explain this to ALL shareholders either voluntarily or via an EGM which I have started proceedings for with my preferred lawyers.

gg

[grahamty] 29/12/2010 09:24

gg, sorry, been away.

Will be happy with anything north of £1m, hopefully edging towards the 20p eps. Will be watching working capital levels and seeing what stock they have been left with after Christmas. Be very interested to see the divi they pay. With the cash position, and having started paying, see no reason why they could not pay a bit more than expected, say a 3p final. Would get a few critics off their backs !

As usual, no news flow at all. Would be lovely to have a trading statement in the New Year. But doubt will happen.

Am interested to see yr post of earlier re yr shares.

S

[neverforget] 29/12/2010 06:25

to me this looks exactly like management trying to maintain the status quo. No reason that I can see that you shouldn't be appointed and would love to hear the reasons why they didnt want to appoint you. After all you have shown more faith in purchasing your shares than anyone else including the directors. Maybe now is the time to do something. Even though Davidosh would be worried about the value you would extract I for one would support it.

[greengiant] 27/12/2010 15:33

neverforget,

I am on holiday this week so wont be posting again, because I want to spend it with my family and friends.

Just to say, that my issue is not with the employees of the company, Some on here know that I requested to be appointed as a non exec, that didn't happen. Which to me still shows that this company is still trying desperately to maintain the status quo. That will not happen - that I can guarantee you. There will be changes. I will post more later but for now, family time.

Andrew

[neverforget] 25/12/2010 20:59

A very interesting read



Now when it say's "We all know that cycling has exploded in the last few years, and that the industry as a whole is doing well for itself"

Are they talking about Tandem? Oh no, this is the management team that have managed to stand still despite an exploding market and where sale prices have risen to offset rising costs. Oh yes and the management team that has paid itslf huge salaries.

[neverforget] 25/12/2010 16:54

gg, really good talking to you yesterday and understand your dogged determination and am fully supportive of your actions. For those who don't know my views are not dissimmilar to andrew's views.

FOR AVOIDANCE OF DOUBT MY FRUSTRATION IS AIMED AT THE EXECUTIVE BOARD ONLY, NOT THE EMPLOYEES THAT IS THOSE STAFF MEMBERS WHOSE NAME APPEARS IN THE FINANCIAL ACCOUNTS.

My views are as follows:
a) Remuneration: Base salaries are fine the issue comes to bonuses. What is this board basing the bonus on? Over the past 5 years we have seen a profit level remaining flat and bonuses increasing by something like 75%. What is the basis for this increase and if profits fell would a bonus be paid at all. In my view it shoudnt. Pay well but on challenging targets
b) Growth: I never made it to the presentation but I have read the presentation and seriously question whether this board has the ability to grow this business. You only have to look at what they have done historically to question whether they can acquire businesses and make money from them. Sales have been static in a booming market for cycling
c) Shareholder Value: Mr Keene keeps stating what a great job this board has done at strengthening the balance sheet but a large proportion of what they have done has been at shareholders expense through capital raising and the writing off of the pref shares

Do I believe that management can increase value here? No, not as it currently with loose bonus objectives and no real incentive to grow profits. After all, you now have an FD who has no shares in the company and a CEO with 64/ shares and that is after how many years of service. Yet you have an independent shareholder who has bought nearly 22% of the company. No non execs have put their hands in their pockets and even the companys biggest "director" has not bought any shares on the market for a while. For too long this company has been there to support the directors. This is why I am so supportive of Andrew's actions and all I can say is that he is absolutely determined to get this company to reward performance, or sell his stake to somebody else who will extract value.
Its Christmas day and that is enough for me

[davidosh] 23/12/2010 15:14

If you use the Motley Fool you can mail me at any time via their reply facility. Just reply to this post by ticking the email link when replying and unchecking the reply to board option.

[neverforget] 23/12/2010 15:06

davidosh I don't know your email address. I hold 15000 shares now in a nominee account

[greengiant] 23/12/2010 12:14

DD, As I have said all along, all options should be considered when looking at Strategy including disposal and the old Do Nothing. It is a good idea to look at everyone's holdings and as such I will be asking for an up to date shareholder register.

For disclosure purposes, my holding is 1,215,000 shares, but I will be adding more when the company updates the market. Following the placing of my FDP shares (233,000) I have the money available.

gg

[davidosh] 23/12/2010 11:52

There are lots of potential suitors no doubt. I would be careful about what is said openly on here though. Do remember that competitors and many who will not want Tandem to be strong as a company and in share price will read these boards.

If I were a European based toy or bike company looking for a UK brand or hub and Tandem fit the bill then they will now want the price temporarily weaker to support their claims that they only need to pay £1.80 per share. We may see the value and no doubt the Board would agree that long term £3 and more should be the price but if we say too much here then it will play into the hands of a competitor. That is why it is always important to have a strong shareholder base.

At this point as most of you know my email address it may be worth updating our own records and establishing the strength of our core group of holders so that we can communicate and address issues quickly especially if greengiant is looking ready to release value for his large shareholding. We may have different targets and expectations and so I would be interested to hear from the other holders as to what your target exit price would be and what shareholding you have. Do not display this publicly though as anyone who reads it would know what they have to offer !

Just being sensible in the light of post 2310. For clean disclosure purposes I do have a significant holding in Cassidy which is now known as Casdon. I am taking a close look at HTI.

[neverforget] 23/12/2010 10:28

gg, why? Have you started looking for who you will place them with? How many people would want to buy your 21%

[greengiant] 23/12/2010 09:38

neverforget,

Based on H1 results, you would think that profit will be similar to last year, although the company did warn about slowing sales. I wouldn't pay too much attention to Argos, they are always out of stock - I tried to buy a Dora Doll for my niece and it was in stock, then out of stock then in stock again within 1 hour.

As for the current share price, it is good to see it so high, but I am now officially looking for an exit, and with the amount of shares I have I am looking to place them with another party.

gg

[neverforget] 23/12/2010 08:07

gg are you saying that you expect the company to make the same amount, less or more than last year? My views are that it will make more, after all if you look at Tandem products (Fireman Sam, Ben 10, Boss, Moxie Girl, Thomas) online at Argos you can see very few in stock (links below). Also with all the road shows in January, you would expect sales to increase significantly in Jan wouldnt you?

[greengiant] 22/12/2010 13:39

I have, nice company but have no idea why it is listed.

gg

[davidosh] 22/12/2010 13:35

gg...Great minds ! Have you looked at CDY out of interest ?

It would be great to have an industry giant with £150m turnover and much stronger hand in discussions with the likes of Argos, Halfords, ToysRUs etc. Just think of the centralised savings and listing costs etc ?

[greengiant] 22/12/2010 13:29

And a nice match with TND with wheeled toys

gg

[davidosh] 22/12/2010 13:26

Interestingly HTI and Cassidy Brothers are just up the road from each other. Both have similar products in the role play and pushed toy areas.

[greengiant] 22/12/2010 13:09

Neverforget,

Yes I do.

gg