Tandem Group – 86p

6 February 2013 – acquisition and trdaing update

Sports and leisure group Tandem has purchased its freehold property in Castle Bromwich, Birmingham for cash of £2.6m, with £1.6m being satisfied by a 5 year term loan from the bank.  This move should save the group £0.3m per annum net of interest rate payments and this is clearly good news.  The group has also revealed that revenue in the year to 31 December 2012 was around £29m, a similar level to 2011, although profits will be higher.  Despite a slow start to 2013, the introduction of new products is expected to recover the position later in the year and, on a low rating, the shares remain a BUY.

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