- First-half revenue down 26 per cent
- Full-year revenue and profit guidance maintained
- Second-half revenue expected to rise by almost half to £20mn
Birmingham-based Tandem (TND:200p), a designer, developer, distributor and retailer of sports, leisure and mobility equipment, has reiterated full-year profit guidance at its annual meeting despite reporting 26 per cent lower revenue in the first half of 2023.
As highlighted at the annual results (‘This recovery play has fewer and fewer headwinds, 27 March 2023'), cautious buying behaviour among national retailers, coupled with a transition from Free On Board (FOB) to direct delivery purchases by them, accentuated the first-half sales decline as customer overstocking is cleared, thus shifting more sales to the second half. The upside is better pricing for Tandem given that national retailers can negotiate larger discounts on free on board (FOB) sales (FOB defines the point at which a buyer or seller becomes liable for goods being transported).