Tandem Group PLC AGM Statement (8256S)
28 June 2018 - 4:00PM
UK Regulatory
TIDMTND
RNS Number : 8256S
Tandem Group PLC
28 June 2018
Tandem Group plc
AGM Statement
Chairman, Mervyn Keene, will make the following statement at
today's AGM:
"Trading in the first part of the year has been difficult, with
revenue for the 25 week period to 24 June approximately 30% behind
the prior year period for a number of reasons.
National retailer overstocks that were carried forward from the
previous year in both toys and outdoor product categories have
reduced order intake this year. The well documented issues in a
number of national retailers, most significantly Toys R Us who were
one of our top five customers and an outdoor specialist, have also
impacted on the sector.
Although the May retail sales numbers showed some improvement,
retail sales were weak in the preceding months. Lengthy spells of
cold weather and periods of heavy rain coupled with cautious
national retailer buying and a lack of confidence in consumer
spending was acutely reflected in toy industry data with a
significant year to date decline in sales reported.
Both national retailer and independent dealer bicycle sales
during the period were generally disappointing. However, we
continue to see strong growth in our Squish lightweight junior
range.
In licensed products, PJ Masks continued to grow and Disney
Princess was ahead of the previous year. Early signs for LOL
Surprise!, a new licence this year, are encouraging with the
property occupying five out of the top six toy sales rankings to
the end of May this year.
In own brands, following further investment in product
development, Ben Sayers was ahead of the prior year.
Our direct to consumer sales channels delivered growth and we
continue to invest in this area with additional product development
and digital marketing recruitment. Most importantly, through a
combination of improved sourcing and disciplined price management,
gross margin improved.
We are delighted to announce that we have reached agreement,
subject to contract, with The Walt Disney Company to significantly
expand our portfolio of licenses for 2019 and 2020 to incorporate
their major properties, including Disney, Marvel and Lucasfilm.
This will now encompass highly successful entertainment and
consumer product franchises such as Frozen, Toy Story, Spider-Man,
Lion King, Disney Princess, Avengers and Star Wars.
In 2019 Disney's theatrical and consumer products range is
second to none and we anticipate that all of these properties will
make a significant contribution to future revenue.
In accordance with our announcement on 11 April 2018, a
resolution to pay a final dividend of 2.75 pence per ordinary share
to be paid on or around 4 July 2018 to shareholders on the register
on 18 May 2018 (ex-dividend date 17 May 2018) will be put to the
AGM."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (MAR).
Enquiries:
Tandem Group plc
Steve Grant, Chief Executive
Jim Shears, Group Finance Director and Company Secretary
Telephone 0121 748 8075
Nominated Adviser
Cairn Advisers LLP
Tony Rawlinson
James Caithie
Telephone 020 7213 0880
28 June 2018
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END
AGMFMGZVNNKGRZM
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