LONDON (Alliance News) - Shares in Tandem Group PLC rose Tuesday after the sports and leisure products maker said that revenue in the first 22 weeks of the year grew 26% on the previous year.
The Bromwich-based designer, developer and distributor of sports and leisure products, said revenue in its sports, leisure and toys business rose approximately 62% in the 22 weeks to May 31, while sales of bicycles and accessories withstood a competitive leisure cycling market, up 6% in the period.
"Although 2014 year to date performance has been very encouraging, this has been helped by better weather and an earlier intake of product by national retailers," Chairman Mervyn Keene said in statement to shareholders ahead of the company's annual general meeting Tuesday.
Tandem shares were trading 14% higher at 121.00 pence Tuesday morning.
Back in April, Tandem reported a significantly lower annual pretax profit due to restructuring costs and a change in the fair value of its foreign currency derivatives contracts, but Chairman Mervyn Keene said the bicycle maker's second-half recovery carried into the new financial year.
In his AGM statement, Keene said in a competitive leisure cycling market, both its flagship brands Claud Butler and Dawes have continued to perform well, boosted by the addition of new models for 2014, including lightweight junior cycles, cyclocross bikes and a more extensive ladies offering.
Tandem also said its corporate bicycle ranges sold to national retailers are also performing strongly, boosted by the fact that many independent bicycle dealers are choosing to stock higher-end cycle models.
"The strong second half last year will therefore be a challenge to emulate. Nevertheless, our Autumn/Winter listings are promising, and our hard working and dedicated employees continue to be focused on delivering profitability and growth for the group," Keene added.
The group's sports, leisure products and toys business delivered a very strong performance in the period, as its own brands of Hedstrom swings, Kickmaster football goal targets, and Ben Sayers golf equipment all performed strongly in the period.
In licences, Tandem said that revenue from its Peppa Pig, Thomas the Tank Engine and Fireman Sam leisure products were all ahead of last year, and its One Direction range boosted sales, following its launch into the market in Summer 2013.
Tandem also said that it has agreed terms on two new licences based on the classic children's properties Thunderbirds and The Clangers for 2015 and beyond.
"Strong master toy licensees have been appointed for both properties who we expect to create substantial interest," the company said.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Tandem Group (TND)