19 October 2011 – half yearly results
Interim results to 31 July showed a decline in revenue to £16.7m (2010: £19.1m) with pre-tax profits falling to £553k (2010: £648k). Earnings per share increased to 11.0p (2010: 10.9p) due to a reduction in the number of shares in issue following the share buybacks earlier in the year. The interim dividend was increased to 1.05p (2010: 1.00p). Revenue at the bicycles and accessories business fell by 7% to £11.1m partly due to competitors adopting a policy of heavy discounting, while Tandem’s strategy has been to uphold brand value by maintaining prices. The use of different suppliers during the period which has reduced costs has helped operating profits before central costs to increase to £808k from £424k. Revenues in the sports, leisure and toys business has fallen to £5.6m with operating profit before central costs falling to £138k (2010: £655k). Although the company has issued a cautious statement, as always seems to be the case, there are grounds for otimism ahead of the 2012 Olympics, and with the shares standing at the lowest level for a year and on a prospective p/e ratio of under 5.0x they are a BUY.