LONDON (Alliance News) - Sports equipment company Tandem Group PLC saw its shares gain ground at the open on Tuesday after the company said its 2014 revenue rose on the back the acquisition of Pro Rider and robust like-for-like sales growth.
Tandem said it expects its revenue for the year to the end of December to be up 10% to around GBP31.3 million. Pro Rider, which it acquired in August, delivered GBP1.4 million in revenue, while like-for-like revenue in the year rose 6% against 2013. The group also said it expects a significant rise in operating profit for the year.
Revenue and profitability in Tandem's bicycles business rose over the year, with a good performance from its Dawes brand and its corporate bicycles division. It said though that the pricing pressure at entry level price points remains fierce, with heavy discounting prevalent and generally weak demand for BMX bikes.
In Tandem's sports, leisure and toys business, revenue rose by around 16%, boosted by the performance of its licence category on the back of significant growth for One Direction and Peppa Pig-branded products. The group said it has increased its portfolio of Disney licences for 2015 and beyond in order to further boost the division, with licences secured for the upcoming Avengers and Star Wars movies.
Tandem said its revenue for the first six weeks of 2015 is higher year-on-year, though it said that while its sports division is performing well, like-for-like revenue in the bicycles arm is slightly weaker.
Tandem shares were up 12% to 119.375 pence on the news, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Tandem Group (TND)