LONDON (Alliance News) - Tandem Group PLC shares were trading higher Tuesday morning after the company said its pretax profit pushed higher in 2014 on the back of better revenue and the non-recurrence of costs booked in 2013.
Shares in the company were up 17% to 157.699 pence in morning trade, one of the best performers in the AIM All-Share.
The sports and leisure products company said its pretax profit for the year was GBP1.7 million, up from GBP16,000 a year earlier. Its 2013 results were hit by a GBP807,000 one-off cost related to foreign exchange contracts. Stripping out its one-off costs, pretax profit rose to GBP1.3 million from GBP823,000.
Revenue rose to GBP31.3 million in the year, up from GBP28.3 million, boosted by the acquisition of Pro Rider Ltd and by good growth in its bicycles business and in its sports, leisure and toys business.
Tandem's dividend payout for the year was up to 3.6 pence per share from 3.45 pence per share, within which its final dividend was increased to 2.4 pence from 2.3 pence.
The company said it is "cautiously optimistic" on the outlook for the bicycles and mobility business, with sales to independent bike dealers starting the year slowly but corporate sales holding up well. In the sports, leisure and toys business, the company expects further growth in the coming year on the back of a slew of new licensing agreements signed, including one with Disney.
Group revenue for the 14 weeks to April 12 was around 6% higher year-on-year, it said.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Tandem Group (TND)