Tandem Group Share Chat (TND)

Agree very decent results. It gives a real sense of the value that the company's freehold properties alone worth way in excess of market cap. 100% fully owned and mortgage free.

Everything else moved in right direction. Management proving nimble at moving to growth product lines. Revenue way up, with profit to go with it. Cash up. Liabilities slashed. Bullish outlook. Even have that reinstatement of dividend as a tangible signal the business is now firing on all cylinders.

Net assets £26m [ including £16m of prime property].

Market cap £9.5m.

Just returned to profitability.

Looks a safe haven in difficult times.

Very impressed. In a very tough market for consumer discretionary they've surely exceeded expectations here. This remains wildly undervalued.

50% upside by Christmas

That’s my view

Https://www.investorschronicle.co.uk/content/db5f78c8-4299-4ee6-8199-eb6fe5168c2e

Should generate even more interest here

At it again

£2.02p to sell. We havnt been here for a while.

TU was very good and continued warm weather means could be a great year for TND

New TR1, Simon Bragg interestingly continues to add here. Latest buy at 190p. GLA

Correct 404. And that's without the Hoy brand.

For the other categories it looks like sales are back ended they do sound confident.

Think this might clear £2 today.

Sounding very promising. Overall sales up 15%, bike sales were the key thing I was looking at as those the company's biggest division - so for revenue on them to be up 52% is pretty special.

Another interesting aspect is Simon Bragg being appointed to board recently. His credentials way above and beyond what you usually see on a market cap this small, including being director of a FTSE 250 JP Morgan Trust. Plus he's been consistently buying shares. Will be interesting to see what he brings to table. It does seem like the market has been fast asleep on this one.

Deflation in China,Good weather(as opposed to last year where the weather was blamed) and generally more optimism and rising bike sales and garden furniture can send this flying up,as it must be worth much,much more,in my opinion...

Agreed.This has been missed by the market,but, for how long can it continue to get missed....Rerate soon, I think...

Agree weather has to be a booster this year. Halfords citing stronger numbers from cycling has to be a promising sign. Plus GBP much stronger this year will help with import margins. Trading wise a lot seems to be going in the company's favour.

It actually is a bit absurd how cheap it is now based on the assets alone, priced at less than half book value! Insane really.

These are really cheap and undervalued,as last year spring was wet and dull which affected sales. This year has been good weather. They were cheap anyway,but feel this could send these rocketing from this very cheap level...

Finally the green shoots of a long awaited recovery. With NAV still over £3 the business is in for nothing even if the price get to just over £3.

500k profit after at 400k loss at half time suggests that we should earn £1 m this current year at least.

I therefore expect broker upgrades as the year goes on.

I think £4 is very possible this year with a decent summer helping as well

It may take time as the stale bulls probably want out.

I hope we dont fall to a cheap bid.

tiger

A very well run company and deserve credit for growing revenue that much in what is a tough market for consumer discretionary.

Today's statement looks very positive. The shares are up on the back of it but have further to go. Good comment on cityconfidential website

Hope this the bottom the only way is up!

Think this is the bottom.

Solid balance sheet

Some of the hottest Bike-as-a-Service startups include VanMoof, known for their sleek, tech-forward electric bikes; Lime, a leader in e-bike and e-scooter rentals; and Cowboy, which offers stylish, connected e-bikes. These companies are making waves in the industry by integrating advanced technology, sustainability, and convenience, much like Tesla has done with cars. According to https://www.gpone.com/en/2024/01/17/motogp/how-much-does-a-motogp-bike-cost.html a MotoGP bike costs around €3 million. This staggering price includes cutting-edge technology, bespoke components, and extensive R&D. The cost breakdown includes approximately €100,000 for the frame, €250,000 for the engine, and €20,000 each for the electronics and suspension systems. Tires alone can cost up to €1,500 each, and additional expenses such as telemetry systems and maintenance contribute to the overall cost. MotoGP bikes represent the pinnacle of motorcycle engineering, justifying their high price tags with unparalleled performance and innovation.

The SP is on its bike... Something is going on...

Hi Beza seems reasonable at £900k profit.
Absolutely no risk of company going bust

Hi Banbury, what do you have pencilled in here for full year eps? My ‘back of a fag packet’ estimate is something just under 18p/p/share.

Thanks Beza - I of course meant a higher buy in price.
Yes this one's off the radar very few trades

I don, t think tandem has reached bottom yet very disappointed results,

Would have been nice to see expectations beaten following past performances, particularly given the wider sector data showing a sharper rebound through the year. A must-try-harder school report feels fair!

This looks to have livened up since last update. Decent daily volumes by usual standards of this share and how illiquid it is, seems to have a consistent buyer now. Price could still double and only just be on a par with NAV, leaving future profits still effectively free.

Good to see results in line with expectations and with no more surprises. Overall bottom line pretty decent going considering revenue drop last year, seems they've got a handle on costs. The financing facility being renewed for 5 years removes a huge amount of uncertainty and HSBC wouldn't have renewed/consolidated credit if it was a true basket case.

Most promising is the outlook implying return to profit this year. Do just wish they'd stop blaming the weather. Otherwise fwiw I'm buying here, no brainer imo when it's priced at less than half net asset value.

I hope we have a good range of dartboards in the games section.

Tandem shares should rise in December they have some great gadgets for Xmas.

To clarify I meant the comparison being that prior half year (01/07/22 - 31/12/22) versus period just reported (01/01/23 - 30/06/23). Them saying forex going against them in latter period stands out. Possible Tandem tried to hedge with exchanges at the lows, but that in itself would have been a bad call they couldn't really just blame on the market. Always a bit wary of companies always blaming external factors year after year.

Having said all that by balance sheet reckon this is now the cheapest solvent retailer listed on whole LSE. Not sure if it's large enough for private equity to be bothered making an offer for but chance someone will spot value here.

To be fair 404 - incompetent Liz became PM on 6th September 2022. Way after the comparative period that ended 30th June. They gambled badly no credibility issues.

To late for me as I'm well under water but as you say fantastic entry point as net assets are 2.5 fold higher than market value. Thats really unusual.

Also not convinced about blaming profit fall on foreign exchange movements. In the prior comparable half year sterling was way down via Truss and co, so if anything it should have been a tailwind this year. It's only post period it's started to stall again. ABF's recent results for example cited forex as a benefit contributing to their increased margins in the period.

Excuses that stretch credibility aside the company is crazy cheap at this level.

I can't see how the weather can be blamed for results up to 30th June. It was the hottest June on record, following a warm spring.

Hope the Barbie bounce kicks in for the second half of the year.

Please can anybody tell what is going on?

2024 eps broker consensus forecast of 24p/ share.

What is going on this share is on a crash dive!

Analysis of Tandem Group : https://www.youtube.com/watch?v=BFksHbmY4Ik

14 or so single digit trades yesterday.
Really unusual for this share.
With steep rise over last few weeks does feel like something is affòot

Following the transactions described above, Mr. Grant is now beneficially interested in 285,000 Ordinary Shares, representing approximately 5.2% of the Company's issued ordinary share capital.

The shares are impossible to buy in any amount. Trading well below NAV and a revaluation set on the property for early 2023.
Northants closing which will trim costs and a reduction in external storage again that will add to the bottom line.
The new retail store looks amazing and opens next week.
Freight rates back to old values so 2023 should see margins improve.
Peter has a strong grip on costs and will deliver going forward.
2023 will not be easy but TND is well placed to deliver a much improved result.

Good analysis there planetx.
I am also holding but wish I had followed the director last year and sold out.

Tandem looks in a decent position long term especially as it has good diversification across its portfolio.

Bicycle market is currently terrible and super tough to navigate.

Lead-times are very long still and manufacturers like tandem have had to place big orders to secure slots, this would have been 12 - 18 months ago.

These orders are only just filtering through but there is a tidal wave of orders to follow which is going to concertina in towards mid to end of this year, now couple this with the sudden drop in demand of the past three months, rising energy and petrol and general headwinds the bicycle industry is heading into a perfect storm.

The good news is of course Tandem is cash rich and can ride out the storm and maybe find opportunity out of adversity as leveraged rival brands fall over.

E-scooters are not going to save them, this market has collapsed. Zyro-Fisher one of the largest / best cycling distributors have just discontinued all their e-scooter ranges due to poor sales and concerns over liability issues. Selling scooters that are banned on the road that then cause injury or death by the user, well its not hard to see how the manufacturer / retailer get sucked into this.Tandem will catch a cold on e-scooters that is for sure.

Tanden is a good long term hold but is going to be in the eye of a storm this year and a lot this year is going to depend on how they can manage their order book and stock as it arrives into a brutal marketplace.

If they can manage that, sit back a touch, sit on cash and have the balls to make a positive out of a negative they could play a smart game .

I'm holding but think there could be further to fall even if the shares look stonking value.

Now we know why the director was selling.

Thirty one trades by 10am that's a weeks worth in two hours. Definitely something going on.

This has not moved.
Market cap £25m. Net assets 15m no debt £5m cash.
Sales £41m plus 10%
Profit expected to be significantly ahead of last year which was £4.1m. And ahead of market expectations.
Expecting £5m plus profit. P.E of five.
Also expect transformational news on electronic scooter usage in March. I also think highly complementary to HFDs.
I'm buying more

At £5.07 to buy this is at 52 week low and very attractive.
Been typing up H1 results very good Sales +14% profit +33% and cash £5.9m.
Q3 17% ahead of excellent 2020 comparative
Q4 to Nov flat on an excellent comparative.
Screaming buy based on this and links below which are detailed and valid (previous post).
Update normally early Feb on finals think this has £6.50 all over it and long term target for HFD

I have a really modest holding and think (1)this has £10 written all over it. (2) would not be surprised to see a HFD bid after strong results today.
On H/ L today spread amazingly is only 5p 618 to sell 623 to buy. It can be as high as 40p.
Considering buying more if my CNE comes good.

https://www.investorschronicle.co.uk/alpha/2021/10/11/a-bargain-play-on-the-e-scooter-craze/
I've been holding this for a while, very under the radar and surely will re-rate at some point towards £10/share

Todays buying seems to be triggered by this article:
https://pdfs.investorschronicle.co.uk/Simon_IC_Alpha_Report_111021_067143.pdf
Simon Thompson’s view:
It’s not often you get the opportunity to lock into a 14 per cent earnings yield when the
risk to earnings is to the upside. However, a leading UK sports, leisure and cycle product
provider offers exactly that. The group not only has orders for cycles stretching well into
the second half of next year, but offers potential to ramp up e-scooter sales if the UK
government approves their use on public roads. It looks a near racing certainty that they
will when trials complete next March. Trading on a PE ratio of seven and with the
directors recently declaring a 10 per cent half-year dividend hike, the investment risk is
skewed to the upside.