Tandem Group LON:TND the Birmingham-based, mobility product designer, manufacturer and retailer published its final results to end-December 2024 earlier this week (24th March).
The company designs bicycles, scooters, sports goods, toys, camping equipment and toys and games.
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The company reported a year-on-year 11% increase in group revenue to £24.6m and said that it had experienced growth across all its divisions, apart from Home & Garden, I guess you cannot account for the British weather.
On a divisional basis, Tandem’s Toys, Sports and Leisure division saw its revenue increase 19% to £12.4m and saw growth in both its own-brand and licenced products. Cycling, as a pastime grew in popularity during the Covid-19 pandemic and remained a popular recreation choice in the years after the pandemic.
Getting on your bike
However, over the past few years there has been a slight decline in the annual growth of cycling. Nevertheless, with national cycling infrastructure investments, a campaign to encourage people to spend less time in their cars as part of decarbonisation efforts, a growth in national health and environmental awareness, cycling is still a growing recreation pursuit with numbers of cyclists still higher than they were before the Coronavirus pandemic.
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This has been good news for Tandem, which reported a y-o-y growth in its bicycle revenue of 11% to £7.4m. Segmentally, Tandem said that it saw a 39% increase in revenues from mechanical bikes, and a 69% increase in children’s bike sales. Golf, too, saw a growth in popularity during lockdown, which has maintained its popularity and Tandem saw a 13% increase in golf sales to £2.5m.
However, it wasn’t all good news. Tandem reported a 21% fall in revenues from its Home and Leisure division – a victim, said the company, of disappointing weather last summer.
All-in, tandem managed to turn a £1m loss in 2023 into a £500,000 profit before tax last year. In terms of gross profit, Tandem saw an increase of £1.2m year-on-year to £7.4m, with a gross profit margin of 29.9%, up from 27% in 2023.
The bicycle manufacturer also boosted its bank account by £1m to finish the year with £1.4m of cash and cash-equivalents.
Rising above a distressed market
The company said: “Amidst a difficult economic environment, there have been encouraging signs. The group has delivered resilient performance during a period in which multiple industry participants have become highly distressed. The continued success of our initiatives and a strategic focus provide the board with confidence for the future.”
Tandem said it has kicked-off 2025 strongly, but despite this the company’s management hasn’t loosened the dividend spigots yet, but are keeping a watching brief should profits remain strong.
Tandem Group was established in 1958, and specialises in the design, development, distribution, and retail of sports, leisure, and mobility products. Headquartered in Castle Bromwich, Birmingham, the company operates across several segments including Bicycles and Accessories; Sports and Leisure, which includes its golf and kickmaster football brands; Home and Garden and eMobility and Mobility Products. The company also has outdoor snooker, pool and table sports
Tandem primarily expanded its portfolio through acquisitions and partnerships. In 2014, the company acquired Pro Rider Mobility for £2.5m with a further £1m in profit and revenue-linked factors and the following year bought E.S.C. for £2.1m, with an additional consideration of up to £750,000. More recently, in July 2023, Tandem Group Cycles partnered with Cyclefit to expand its dealer network.
Chairman, Stephen Grant said: “As the business looks ahead to the remainder of 2025, we hold a cautiously optimistic view of our market position. With our strategic initiatives well underway across the group, we are confident in our continued growth momentum for 2025 and beyond. Looking ahead, the group is well-positioned to seize emerging opportunities and leverage its core strengths to drive long-term, sustainable growth. The board remains assured of the group’s strategic direction, anchored by our unwavering commitment to innovation, customer focus and operational excellence.”
