Tandem predicts marginally improved profit

Sports and leisure equipment supplier Tandem says that its 2010-11 pre-tax profit will be slightly better than last year. AIM-quoted Tandem had already warned that Christmas trading might be weak and like-for-like turnover was 12.8% lower in the three months to December 2010. The poor weather had a negative effect on bicycle sales. Overall turnover fell from £35.7m to £34.6m in the year to January 2011. That was mainly down to lower volumes from a promotional contract with a national retailer.Tandem's pre-goodwill impairment profit was £1.02m in the year to January 2010. This year's first half profit improved from £547,000 to £648,000 so there could be a decline in second half profit even if the full year outcome is better than last time. Price inflation of products imported from the Far East will make the current year challenging but the strengthening dollar will help to offset the problem. Early orders for the new bicycle range have exceeded expectations. Tandem has secured the licence to the Disney/Marvel Avengers movie due for release in the summer of 2012. Sales of London 2012 Olympic bicycles and wheeled toys will begin in the second half of 2011. Tandem is identifying acquisition targets. The full year figures will be announced in May 2011.