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(Alliance News) - Tandem Group PLC on Monday said annual pretax profit and revenue fell amid "challenging" economic climate and exceptional costs.
The Birmingham, England-based sports and leisure product retailer said its 2022 pretax profit fell by 75% to GBP1.2 million from GBP4.9 million the year before.
Tandem attributed this to exceptional costs of GBP223,000 in respect of legal fees relating to the resignation of Chief Executive Officer Jim Shears, and redundancy payments regarding the relocation of one of its warehouses. The company also noted a deferred tax charge of GBP139,000 in respect of pension schemes.
The company's revenue fell by 35% to GBP26.7 million from GBP40.9 million, which was driven by "continued challenging economic conditions".
The company declared a final dividend of 6.57 pence, unchanged from 2021.
Looking ahead, Tandem says sales for the current financial year have begun slowly "as expected" due to continued caution by national retailers and delays in goods passing through UK ports as a result of additional customs checks. The company said this has impacted its results for the first quarter of 2023.
Nevertheless, Tandem said its balance sheet strength has placed the company in a strong position for growth opportunities and to take on the "challenges and uncertainties of the wider trading environment". The company also noted it has secured a number of new licenses "which are showing strong potential".
Chair Stephen Grant said: "The position moving further into 2023 is not going to be without its challenges, however, the group have now successfully completed a number of significant projects as previously announced and believes it is extremely well placed to take advantage of opportunities that arise. The board remain confident in the strategy of the group."
Shares were down 6.1% at 232.50 pence in London on Monday afternoon.
By Sabrina Penty; Alliance News reporter
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