News
Losses slow at Tandem
Carlton Reid Oct 9 2006, 2:30pm
For the six months ended 31st July 2006 the owner of Falcon, Dawes and British Eagle incurred a loss of £207,000 compared to a same period loss last year of £399,000.
Operating profit before goodwill amortisation and taxation was £15,000 compared to a loss of £123,000 for the same period last year. Turnover was £16,143,000 compared to £22,373,000 last year. The big drop was put down to the disposal of Pot Black, the snooker table brand.
Tandem chairman Graham Waldron said:
"Production in the UK ceased in June 2006 with all bicycles now being specified and designed in the UK and manufactured abroad. Exceptional costs of £198,000 were incurred in closing the production facilities but going forward significant overhead and working capital savings will be made.
"Turnover was down in the six months compared to last year due to reduced sales to national retailers where margins are lower.
Good progress has been made elsewhere in increasing the customer base with more potential to come."
Turnover at MV Sports was also down, said Waldron, due to "increased competition against some of our longer established licences and cautious buying from national retailers."
Waldron said profits for the group have "historically been concentrated in the second half of the year. This year will be no exception. Now that the problems encountered at our Pot Black business are behind us we expect that the level of profitability in the second half will return to a more acceptable level."
