Tandem YTD revenues up almost a quarter despite strong comparatives
Sports and leisure products retailer Tandem Group said on Wednesday that trading had "remained robust" since February albeit against a much stronger prior year comparative, with group-wide revenues up 24% year-on-year.
Tandem said business-to-business revenues between in the five months ended 31 May from its sports, leisure and toy ranges were approximately 32% higher of year-on-year, driven by increased FOB national retailer business and growth in its own-brand products being materially ahead of the prior year.
The AIM-listed group added that its Ben Sayers golf business had also performed "particularly well", with revenue more than double what it had recorded in the previous year-to-date period and its forward order book also well ahead of 2020, and noted that bicycle revenue was approximately 21% ahead of the prior-year period, with ebike revenue "particularly significant" at 112% ahead.
Tandem did caution that one of its "biggest challenges" was stock availability, particularly on bicycles, which receipt thereof had been interrupted by worldwide shipping capacity and container availability.
"Freight costs have increased again in recent weeks and global demand for components, particularly for bicycles, remains high which has impacted our margin," said Tandem.
"Despite these challenges group revenue to 31 May 2021 was approximately 24% ahead of the same period last year. Profitability was also considerably ahead of the prior year augmented by our cost base not yet returning to pre-Covid levels."
As of 1130 BST, Tandem shares were down 3.76% at 640.0p.