A financial statement from Tandem Group reveals that, thanks to losses, it is to attempt to cut overhead costs at Dawes and Claud Butler by £1m in 2017. These cuts include the redundancies actioned in October last year.
The group today released a trading update ahead of its annual results for the year ended December 31, 2016, which are due to be announced in April. Tandem’s revenue in 2016 was £38.4 million, 12 percent ahead of the prior year. However, little of this was from the group’s bicycle division. Instead, the group’s leisure division is still driving the business, including its golf brand, Ben Sayers.
The cycle division’s revenue is down by 26 percent year-on-year. "Both corporate and independent bicycle businesses encountered difficult trading conditions," said the Tandem statement.
"Unlike the prior year, there was no significant promotional contract in our corporate bicycles division and revenue reduced as a result."
The statement adds that sales via independent bike shops were down, which the statement blamed on the "overall trend in the UK leisure cycling market."
Tandem also owns the Boss, British Eagle, Elswick, Falcon, and Townsend cycle and accessories brands, and operates licenses for branded cycle products from Peppa Pig and similar.
The bicycle division also now offers childrens’ cycles under the Squish brand.
"This was exceptionally well received at our January trade show and we are encouraged by the potential of these products," says the company statement.