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Sitting tight through an uncomfortable ride

A distributor and retailer of sports, leisure and mobility equipment has been impacted by the challenging retail environment, but still offers growth drivers for an earnings recovery
June 23, 2022
  • Revenue down 43 per cent in the 17 weeks to 30 April 2022, but 8 per cent higher in the seven weeks to 17 June 2022
  • Analysts downgrade full-year pre-tax profit and earnings per share (EPS) estimates by 62 per cent to £1.4mn and 22.2p

Birmingham-based Tandem (TND:245p), a designer, developer, distributor and retailer of sports, leisure and mobility equipment, is feeling the impact of the ongoing cost of living crisis.

In a first-half trading update, the directors revealed that revenue declined 31 per cent in the 24 weeks to 17 June 2022, albeit in the past seven weeks of that period it increased by 8 per cent. Although Tandem’s toy, sport and leisure business held up well, growth in bicycle sales reversed, dipping by more than half as demand that buoyed sales during last year’s pandemic lockdowns diminished. As a result, Tandem is holding higher stock levels than it had anticipated, so is planning several promotions and special offers to stimulate sales.

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