19th Apr 2016 09:18
LONDON (Alliance News) - Tandem Group PLC on Tuesday reported a drop in profit in 2015 following the acquisition of online retailer ESC (Europe) Ltd, but revenue rose as growth in sports, leisure and toys offset a decline in bicycles and mobility.
The sports and leisure equipment maker said its pretax profit in 2015 fell to GBP1.0 million from GBP1.7 million in 2014, following its GBP2.4 million acquisition of ESC in September.
Revenue, meanwhile, grew to GBP34.4 million from GBP31.3 million, with ESC contributing GBP1.6 million of this.
By division, revenue in the bicycles, bicycle accessories and mobility business fell to GBP15.5 million from GBP16.1 million, but grew to GBP18.9 million from GBP15.2 million in the sports, leisure and toys business.
Tandem will pay a total dividend of 3.75 pence, up from 3.60p the year before.
Tandem said it has produced a strong range of bicycles for 2016, and noted that while the mid-tier independent cycle market continues to be challenging, order books have improved over recent weeks.
Meanwhile, in the MV Sports business, Tandem said it received very positive feedback to its 2016 toy range at the recent toy fair in London, with new licences showing good potential, leading to a "strong platform for growth" in 2016.
Shares in Tandem were trading up 15% at 129.75 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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