Operating profit is reported to be up by 125 percent. Turnover increased by 43 percent. Tandem’s bank debts are being paid down.
And all this against a backdrop of foot-and-mouth disease and a global slackening of demand for bicycles.
Tandem’s preliminary results for the six months ended 31 July 2001 show that it’s possible to buck the trend.
Operating profit before goodwill amortisation for the six months was £475 000 up from £211 000 on turnover of £15.6m up from £10.9m.
Pretax profit fell to £47 000 from £432 000 after the absence of an exceptional gain of £628 000 in respect of bank debt written off less bank fees and credited in the previous year.
Tandem chairman Graham Waldron said:
“The encouraging performance of the Group this year gives the Board confidence to progress further by cautiously seeking additional businesses to acquire in the sports and leisure equipment market. Negotiations are taking place with a number of companies where we have identified opportunities for profitable growth through consolidation and operational synergies.
“The Group’s overriding priority is to maintain the improvement in shareholder value by increasing profitability and reducing debt. The Board believes the current financial year will mark a major step forward in this objective.”
Waldron said Falcon, Tandem’s largest subsidiary, continues to make solid progress and to achieve margin growth in a highly competitive market.
“With a good order book going into the busy Christmas period, Falcon is expected to have a strong second half-year and produce a significant increase in its full year operating profit compared to last year,” said Waldron.
He said customer perception of Dawes and its model range has remained healthy since acquisition.
Two Wheel Trading continues to grow sales, said Waldron, and an improved profit performance is anticipated for the full year compared to last year.