Tandem cautious on Christmas trading

The share price of sports and leisure equipment firm Tandem back-pedalled on Wednesday after the company said that tough trading conditions in September and October had made it wary about the group's prospects over the crucial Christmas trading period.Group revenue in the 27 weeks to 15 October was in the region of £26.9m, slightly down from £27.3m in the corresponding period of last year. The bicycles and accessories business saw revenue retreat to £16.0m from £17.3m the year before, though some of this shortfall was made good by a rise in sales in the sports, leisure and toys side of the business, to £10.9m from £9.9m a year earlier. On the bright side, reaction to the group's new 2011 sports, leisure and toys product ranges has been good, chairman Mervy Keene. "I am pleased to report that Spring/Summer 2011 catalogue listings continue to grow and exceed our expectations. In particular, selections of our new licences, Ben & Holly's Little Kingdom and Tinga Tinga Tales, are very encouraging," Keene said. "With Chinese New Year being early next year, we expect January 2011 sales to be ahead of last year as goods are shipped before the holiday period," Keene added.