Tandem Share Discussion Threads

[castleford tiger] 06/2/2013 10:13

Valued at under 4 million and making 1..........the shares are undervalued.
Co is spinning cash off and i like them buying the freehold.
Its a non dep asset that saves us 300k a year.
1.6 million over 10 years means first year 160 k plus interest say 50k

net saving of 100k straight to bottom line.
With the cash they are throwing off they will soon pay it down.

I must try and make the AGM this year because there are lots of trading questions i need to ask.

tiger

[horndean eagle] 06/2/2013 09:43

That 300k net saving on rent will come in handy to pay for any pay rises the directors might fancy awarding themselves as a result of increased profitability from this move. What was quite amazing was the fact they managed to get funding for the purchase at such a low rate. There are many a listed property company that can't access funding costs as low as that.

[graham1ty] 06/2/2013 08:27

These were well bid at 81p yesterday. That bid has gone.....

[puffintickler] 06/2/2013 08:17

If they were comparing 12 months with last "year's" 11 then they would be lying.

No, they must be comparing equal periods. I would also have expected them to specify which profit they are referring to. I presume it is PBT but they should have been explicit.

[graham1ty] 06/2/2013 07:59

Must clarify with Jim what they actually mean by profit up on last year. At the last trading statement was forecast to be down....

Last year was only 11 months because of the change to the year end. So ? beating 13.4p ? Beating £820,000 PBT ?

Or is the wording bad and they mean 2H was better than 1H ?

[graham1ty] 06/2/2013 07:54

At last year's AGM it was pretty much said that they would find it difficult to make much headway with existing businesses and an acquisition would be needed for any step change forward. ( despite the rather chequered history on acquisitions).

Well, that is out the window !!

[puffintickler] 06/2/2013 07:40

Hi Graham,

The impact on the P&L will be in next year's results. Although not exactly rocket science it will do more for profitability than anything else they have done, a net gain of 300k py is a 40% increase in profitability. Remember, only 1600k is increased debt so it will have self-financed in 6 years.

That said the rest of the statement is very uninspiring in such a good year for cycling. At least it seems their premium cycles are starting to make some headway but as always this company seems to just drift overall.

I reckon slightly positive on balance but share price will probably drift down slightly.

[cwa1] 06/2/2013 07:29

Good.....bad....good....bad....

[graham1ty] 06/2/2013 07:23

Typical TND statement......bit of this, bit of that. Bicycles not doing well in record Olympic year......but maybe more profitable.....both divisions behind.....but probably ahead.....

I suppose the single statement that "Revenue for the year ended 31 December 2012 was similar to the prior period at approximately £29 million and profit was ahead of the previous period" has to be positive.....

Buying the freehold.....why ??? I suppose it helps the p&l longer term and it may be a good offer. BUT, bang goes no net debt ( and not stated what the position will be now); reduced chance of divi increases; unlikely more buy backs; what about the acquisition they have been talking about ?; AND I want a profitable bicycle business, not a property holding company....

Overall, my guess would be opens fractionally down ???

[amt] 31/1/2013 19:32

neverforget - I am stating current purchases implies they are very comfortable about cashflow which is a good sign nothing more than that.

[neverforget] 31/1/2013 17:24

Cash and cash equivalents £2,018
Financial liabilities £3,656

net debt 1638g
that is more than what they have spent on shares which means they would have been in a net debt position anyway

[supreme mo] 31/1/2013 16:58

Net debt - are you sure about that??

[davidosh] 31/1/2013 16:28

We all know why they did the majority of those share buybacks and at such a high price compared to its trading average!!

[neverforget] 31/1/2013 13:51

amt you are joking right? put it this way over the past 2 years tnd have spent £1321948 of our money buying back shares. the average price they have paid for these shares was £1.33. that means those shares are now worth about £847319 that is a loss of nearly £470g. not a good investment is it. as for plenty of cash the company has now gone into a net debt position. they just dont have a clue

[amt] 30/1/2013 19:12

share buyback shows they think its undervalued and have plenty of cash to play with.

[castleford tiger] 30/1/2013 17:57

AMT ?
WHY GOOD for tandem>?

tiger

[davidosh] 25/1/2013 12:56

Casdon are another toy and leisure company that announced excellent interim results today. They announced the following in their current trading statement...

'UK sales continue to rise across the whole product range. This welcome situation being facilitated in part by the flexibility of ' on line' traders websites, who can upload 50% or more of the company's range. The products can be selected directly from our own image server, and down loaded to their own system. This process can be done worldwide.
The order volumes they achieve determines their own risk strategies when they place orders with us, in trade quantities.'



I am sure that I am not alone in thinking that Tandem have been a long way behind the curve in having deals through online offerings and standing still supplying independents may pay the bills but is not providing any return for us longstanding shareholders who have provided the risk capital. The share price is exactly the same as when I first bought five years ago with very little in the way of dividends.

Meanwhile bike companies harnessing the internet have done wonderfully well.

[amt] 25/1/2013 07:20

Perhaps share buy back. That would be a good sign.

[cwa1] 24/1/2013 15:58

It's alive....just.....

Certainly would be nice to get a post Xmas trading update. But I guess we're only shareholders....

[amt] 15/1/2013 11:59

should be good for Tandem

[supreme mo] 13/1/2013 23:37

Is anyone alive out there?! will we be blessed with a post Christmas trading update do we think?

[castleford tiger] 17/12/2012 11:09

The cycle industry may be booming but we seem to be missing out.
The bigger players are buying containers direct?
The smaller players are being squeezed.

Either we take a leap forward and buy out the manufactuer of the bikes or we will never see and up turn.
I think the business needs to re focus and i would start by having a full SR.

Tiger

[graham1ty] 27/11/2012 11:18

Certainly hope not that bad and think if that is the view of the Board then a specific announcement would have to be made. The interims said profits would be "behind last year". I know that covers a multitude of sins, but "behind" sounds to me like 10-12p as I suggested above. 6-7p would be half last years level and a disaster

[supreme mo] 27/11/2012 07:56

what do you think eps will be for this year? 6-7 p?