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(Alliance News) - Tandem Group PLC on Thursday reported "challenging" trading in the 24 weeks to June 2022 as sales and demand across its divisions fell.
Shares in Tandem were down 16% at 251.00 pence on Thursday morning in London.
The Solihull, England-based sports product distributor said that trading in the 24 weeks was 31% behind the previous year.
It explained that both national retailer and independent bicycle sales were disappointing, with turnover 55% behind that of the same 24-week period a year prior.
During the pandemic, the company benefited from "unprecedented" demand. This demand has since diminished, leaving Tandem with high stock levels against a backdrop of "overstocked" customers. It intends to address this issue with promotions and special offers in the remainder of the year.
eMobility experienced similarly disappointing results, with turnover down 26% compared to the prior year. Nonetheless, Tandem said it believes the segment has the "largest upside potential".
The Home & Garden division also saw a decline. Revenue in the segment was 56% lower as the previous year. The company blamed changing online shopping habits and the cost of living crisis for the decline.
More positively, revenue in the Toys, Sports & Leisure business was in line with the comparative period. Licensed brand sales were ahead of the prior year, however, own brands were behind.
The current order book is GBP10.0 million, well behind the GBP35.4 million recorded this time last time but at a similar level to the GBP10.8 million seen at the same point in 2020. Tandem said it expects the remainder of 2022 to be "challenging".
By Heather Rydings; heatherrydings@alliancenews.com
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