Tandem Group swings to profit after licensed properties strength

Tandem Group on Monday swung to an interim profit after revenue jumped on the back of a strong performance from its licensed properties.

The sports and leisure goods specialist booked profit before tax of £0.4m for the six month period ended 30 June, compared with a loss of £0.3m for the same period the year before, as revenues rose by 27% to £16.0m.

Consequently, the AIM traded company declared an interim dividend of 1.56p per share, for an increase of 10% over the prior year.

Tandem also reported a 43% year on year reduction in net debt to £2.0m as at period end.

Revenue climbed after its licensed properties, which include LOL Surprise!, Peppa Pig, Paw Patrol and Toy Story, performed strongly, while own brands such as Kickmaster, U-Move and Wired were also ahead on the prior year.

While mixed August weather and the overall economic environment hampered gazebo revenue and bicycle sales remained mixed, the company said it enjoyed significant growth from its flagship Garden Comforts website and a strong summer period for its mobility business.

However, Tandem highlighted multiple potential risks in the near future, including the effects of Brexit on import duty rates and consumer spending, the effect of weak sterling on future imports and the potentially limited longevity and success of its licences.

Mervyn Keene, chairman of Tandem, said: "Despite these threats we look forward to the rest of the year with some confidence and expect to deliver a satisfactory result to our stakeholders for the full year."

Tandem Group shares were up 8.11% at 200.00p at 1528 BST.