Tandem Group increases profits on reduced sales

Tandem’s profit before taxation for the six months ended 31st July was £173 000 compared to £45 000 for the same period last year. Turnover was £24.54m, compared to £25.39m for the same period last year.

"Turnover in our bicycle business reduced due to the withdrawal from low margin business and a worldwide supply shortage of certain components used to manufacture the higher value Claud Butler and Dawes products, where demand was strong," said Tandem chairman Graham Waldron.

"Profit in our bicycle business was in line with last year with an improved return on working capital. Reduced fixed overheads and improved margins should improve the full year’s results.

"The first half of the year has seen a strengthening of our balance sheet with improved profitability and cash generation. The second half of the year usually sees an increase in turnover and profit compared to the first half and therefore the results for the full year should be in line with expectations."

As well as Falcon and Dawes, Tandem owns Pot Black, a snooker products supplier; Ben Sayers, a golf equipment supplier; and MV Sports Group, a toy company.