3 May 2011 – final results
Although trading conditions remained difficult in the second half of its financial year to 31 January, due to the poor weather and weak c0nsumer demand, Tandem still managed to inbcrease its profits in the period due to tight control of costs. Revenue for the year fell by 3% to £34.6m but pre-tax profits increased to £1.09m from £1.02m. Earnings per share were 19.6p (2010: 17.7p) and the dividend was raised to 3p (2010: nil). Although trading in 2011 started well, revenues have dropped back to below last year’s levels in March and April due to weak consumer demand. However, despite the reduction in revenue, profits for the first quarter are expected to be in line with last year. The company bought back 821,500 shares in February as it seeks to enhance shareholder value. Based on the remaining shares in issue, earnings per share for last year would have been 23.0p. The shares have a very low p/e ratio and the shares remain a BUY.