A statement from Tandem said there had been "strong sales of Claud Butler and Dawes high specification bicycles."
There was also a "much improved balance sheet with gearing at lowest level for eight years."
In the year under review, competition in the "lower specification bicycle
market" in the months of November and December "adversely affected Christmas sales volumes," and full year profits from this part of the business
were "below expectations".
At Falcon, operational changes have been introduced which will improve profitability.
"The product range has been rationalised allowing sales of lower priced products to be generated at acceptable margins and also leading to significant savings of fixed costs," said a Tandem statement.
"The 2003 product range has been well received by key customers and increased
listings have been achieved, not only in lower value products, but also in
higher value models. Market share in the bicycle market is therefore expected
to increase during 2003."
At Dawes Cycles, full year results were below target. Tandem said "much effort is being made to increase and improve distribution among independent cycle dealers which, coupled with a lowering of fixed costs, should enable the business to make a satisfactory contribution to the group's results."
Tandem said it has now resolved "supply chain problems" at Two Wheel Trading. Efforts are now being concentrated on improving the utilisation of working capital and controlling fixed costs.
Commenting on Tandem's progress, chairman Graham Waldron, said:
"The Group's priority is to improve shareholder value and increase profitability. The investment and development of brands in our key product groups and the recent acquisition of the MV Sports Group Plc puts the Group in a stronger position than for many years."