Tandem Group, owner of Dawes Cycles, Claud Butler and a number of licensed brands, has revealed a largely flat set of finanicals for 2013 due to the shifting market conditions over the year.
Group revenue dipped slightly for 2013, down 2.1 per cent from £28,952,000 to £28,347,000. It was a 'particularly challenging' first six months, but the final half of the year was far more positive, up 17.3 per cent of last year at £17,096,000.
Gross profit margin hit 29.2 per cent, again slightly down on 2012's 29.7 per cent. Operating expenses were reduced 4 per cent to £7,314,000. Operating profit was slightly up at £972,000, risen from £971,000, while net profit was £354,000 - down from £611,000 in 2012, due to restructuring and changes to the company pension scheme.
2013 saw the Group purchase the freehold of its property in Castle Bromwich and launch plans to install a solar PV system at the property, which was completed in February this year.
Revenue in Tandem's bicycles and accessories businesses was £15,149,000 for 2013 compared to £16,979,000 in 2012.
Operating profit for the year before the allocation of corporate charges and exceptional costs was £476,000 compared to £797,000 for the year ended 31 December 2012.
Tandem's statement said: "The first half of the year was significantly impacted by the poor weather. This was partially recovered in the second half of the year in our Dawes Cycles business which was 8.7 per cent ahead of the second half of 2012.
"However, performance from both Claud Butler and the corporate bicycles division were behind expectation and meant that overall revenues for the year were 10.8 per cent behind the previous year.
"As we previously reported, significant changes were made at Claud Butler during the year. The management team was restructured and a number of support functions centralised. In February 2104, the Brigg site was closed and the business relocated to modern offices close to the distribution centre in Scunthorpe which have already improved operational efficiencies and reduced overhead.
"We have strengthened our corporate bicycles division with additional sales and product development resources. The Falcon, Elswick, Townsend, British Eagle, Boss and Zombie ranges all underwent extensive redevelopment during the year and it was necessary to clear stock overhangs from the prior year. Coupled with intense price competition meant that it was a challenging year but we are optimistic about the future performance potential from this part of the business which is already gathering momentum in 2014.
"Although there were some geographical variations, bicycle dealer attendances at our 2014 UK 'roadshows' were ahead of the previous year. In particular, we were pleased with the increased attendance generated by the new Claud Butler range. Revenue from our Dawes business has continued to grow in 2014 with our adult and junior heritage ranges performing strongly.
"As a result, bicycles revenue for the first quarter was ahead of the first quarter in the prior year."