Tandem Group PLC AGM Statement (3930D)
27 June 2019 - 4:00PM
UK Regulatory
TIDMTND
RNS Number : 3930D
Tandem Group PLC
27 June 2019
Tandem Group plc
(the 'Group')
AGM Statement
Chairman, Mervyn Keene, will make the following statement at
today's AGM:
"We are pleased to announce that it has continued to be an
encouraging year for the Group with revenue for the 25 week period
to 23 June approximately 26% ahead of the same period in the
previous year.
Revenue growth has been driven principally by our character
licensed wheeled toy business with ranges which are sold typically
to national retailers. Despite the recent disappointing toy
industry data and against an increasingly uncertain retail and
macro-economic backdrop, we have performed well.
A number of our licensed properties were ahead of last year. LOL
Surprise!, Peppa Pig and Paw Patrol showed considerable growth over
the prior year. Revenue was further augmented by our new Disney
contract from Frozen, Spider-Man and, most notably, Toy Story
licences. We are enthusiastic about the cinema release of Frozen 2
in November which should bring further growth.
The majority of our own brands including Kickmaster, U-Move,
Wired and Hedstrom were ahead of the prior year. Ben Sayers
delivered growth and was 15% ahead of the previous year as a result
of the investment made in product development during 2018.
Although independent bicycle dealer (IBD) sales were more
challenging during the period, national retailer bicycle sales were
tracking at similar levels to last year. In addition, revenue from
our Squish lightweight junior range was significantly up against
the same period in the prior year. Squish has been a particular
success story and we continue to gain market share and achieve
greater consumer brand awareness.
Sadly, there has been an ongoing decline in the more traditional
IBD customer with many more long established retailers closing down
this year and overall reducing consumer bicycle demand,
particularly in the leisure market.
Following the introduction of anti-dumping e-bike import duties
by the European Union, we have been working hard to re-source
supply to ensure that we continue to offer quality and value to our
customers.
We have been pleased by the progress from our online businesses
but there is little doubt that the retail climate has been
increasingly challenging. However, our Garden & Camping website
(www.garden-camping.com) has shown significant growth this year. We
have implemented a number of improvements ranging from refinements
in SEO and more focussed PPC advertising to an enriched
website/mobile shopping experience and a more responsive customer
service function.
A number of new product categories have been developed
specifically for our direct-to-consumer sales channels which we
expect to deliver profitable growth. It is our ambition to extend
our product ranges so that we have seasonal products all year
round.
Whilst we can look forward to the rest of the year with some
confidence there are a number of potential threats on the horizon.
Although we utilise various forward currency derivatives and
benefit from a natural hedge from our US dollar denominated FOB
business, a stronger US dollar is likely to impact on the
profitability of the Group. In light of the ongoing Brexit debacle,
we are cautious with regard to future consumer spending which is
discretionary for the type of products that we supply. The
longevity and success of most licences is also limited and
transient. Whilst we continue to seek new, exciting and profitable
properties there is no guarantee of this.
We announced on 10 April 2019 that it was our intention to pay a
final dividend of 2.89 pence per ordinary share and a resolution to
that effect will be proposed at the AGM today. Subject to the
resolution being passed, the dividend will be paid on or around 3
July 2019 to shareholders on the register on 17 May 2019
(ex-dividend date 16 May 2019)."
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
27 June 2019
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END
AGMKMGZVDKRGLZM
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