The operating profit before exceptional items and goodwill amortisation for first half of 2003 on a like for like basis was £453k compared to £639k for the same period last year. MV Sports Group Plc, which was acquired
in April, increased the Group's operating profit before exceptional items and goodwill amortisation by £205k to £658,000.
Cost savings have been made by situating Dawes Cycles and Two Wheel Trading at the MV Sports premises in the Midlands.
Turnover at Falcon and Dawes was 2 percent up on the previous year with similar operating profits.
"We now have products covering a wide range of price points and, with increased listings with major retailers, our share of the bicycle market should rise for the full year," said Tandem chairman Graham Waldron.
He also said results recorded at the start of the second half of the year was "encouraging."
MV Sports distributes products featuring children's brand and character licences including Barbie, Bratz, Groovy Chick and Bang on the Door. It has contributed £6,36m of turnover, 8th April to 31st July with an operating profit of £205k. The first half year has previously been a loss-making period for MV Sports with the
six months to 30 June 2002 reporting an operating loss of £88k.
"Early indications at MV Sports look encouraging and the business should yield a significant return on our investment," said Waldron.
Sales - £25.39m vs £19.09m
Pretax profit - £45k vs £284k
Group operating profit before exceptionals and goodwill - £658k vs £639k
Operating profit - £317k vs £547k
Adjusted EPS - 1.13 pence vs 1.03
EPS - 0.10 pence vs 0.76