Tandem's annual turnover to the end of January 2005 was £52.68m. It was £56.9m in the previous year.
The company said its Pot Black assembly operations will cease in January 2006 and that the Pot Black distribution facility in Devon will be closed and moved to the West Midlands alongside the group's MV Sports & Leisure,
Dawes Cycles and Ben Sayers businesses.
As a result additional costs and provisions will be incurred taking the total exceptional restructuring costs of Pot Black to about £1.2m for the year.