20th Sep 2023 12:05
(Alliance News) - Tandem Group PLC shares fell on Wednesday, after it reported disappointing first-half results and declared no interim dividend.
Shares in the Birmingham, England-based sports and leisure product retailer were down 20% to 169.00 pence each in London on Wednesday around midday.
Tandem swung to a pretax loss of GBP1.1 million in the six months that ended June 30 from a GBP307,000 profit a year before, as revenue fell by 24% to GBP9.8 million from GBP12.9 million a year before.
Since then, in the two and a half months that ended September 15, revenue amounted to GBP15.1 million, which is behind the prior year's level of GBP19.1 million.
Tandem said toy sales in UK have slumped this year, despite normally being considered "recession-proof", as outdoor toy demand took a hit from poor summer weather. Consequently, revenue in Toys, Sports & Leisure fell by 44% in the first half.
Tandem noted some "encouraging signs", citing the continued success of its eMobility initiatives, with revenue in the segment rising 53% annually during the period.
Still, Tandem expects annual sales to be down 11% and 13% against market expectations, with underlying pretax profit to be around break-even.
Based on the half-year results, Tandem announced a "postponement" of its interim dividend. A year earlier, it paid out an interim dividend of 3.43 pence.
"We remain steadfast in our commitment to our strategic objectives, and the challenging market conditions have not deterred us from pursuing avenues for growth and exciting innovation," said Chair Steve Grant.
By Sophie Rose, Alliance News reporter
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