Tandem Group – 90.5p

28 March 2013 – final results

Final results covering the year to 31 December 2012 have been released.  Profit before taxation was £830k versus £820k for the 11 month period to 31 December 2011.  Basic earnings per share came in at 14.57p versus 13.37p per share for the 11 month period ended 31 December 2011.  The final dividend has been nudged up to 2.20p per share from 2.10p last year, taking the total to 3.30p from 3.15p.

The company rarely paints a rosy picture of future prospects and the latest results commentary has warned that the current year has not started particularly well.  Tandem sees acquisitions as key to driving growth and is actively seeking opportunities.  Net debt increased by £430k during the period, which is no cause for concern as the acquisition of a freehold property for £2.6m has been completed.  The company is steadily building shareholder value and although holders require considerable patience there is scope for considerable upside over the longer term.  We retain our BUY rating.

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