(Alliance News) - Tandem Group PLC on Wednesday said thriving sales of electric bikes has helped ensure trading remains robust.
The sports, leisure and mobility equipment distributor noted revenue for the first five months of the year was around 24% ahead of the prior-year period. This was despite the comparative period benefiting from the start of the Covid-19 lockdown, when consumers were forced to turn to at-home entertainment.
Bicycle revenue for the same period to the end of May saw a similar improvement, up around 21% compared to the 2020 comparative. e-bike sales proved particularly buoyant, 112% ahead year-on-year, as consumers look post-pandemic to replace commutes on crowded buses and trains with journeys on bikes. The forward order book for its bicycles remained "exceptionally strong", Tandem added.
The business-to-business division produced revenue 32% ahead of the same five months of 2020.
Profitability was considerably ahead of the prior year period, augmented by the company's cost base not yet returning to pre-pandemic levels, its said.
Despite signs for optimism, Tandem cautioned that the industry continued to experience serious problems with stock availability, particularly of bicycles, and worsening margins caused by rising freight costs due to global demand for components.
The AIM-listed group commented that it remains mindful that Covid is a continuing problem in some supplier countries, which could potentially lead to issues with stock shortages and rising costs.
Tandem reiterated its intentions to hold a physical annual general meeting on June 24, although said that this date could be changed nearer the time due to Covid restrictions.
In an unrelated announcement, it said Juliet Barratt has resigned as non-executive director, effective immediately.
Shares in Tandem were down 0.9% to 659.00 pence in London on Wednesday afternoon.
By Will Paige; willpaige@alliancenews.com
Tandem Group (TND)