BRIGG, UK - For the six months ended 31 July 2006, Tandem Group PLC incurred a loss after goodwill amortisation, exceptional items and taxation of GBP 207,000 (€ 207,000) compared to a loss last year of GBP 399,000 (€ 591,000). The supplier of renowned brands like Falcon, Dawes and Claud Butler, was faced with exceptional costs of GBP 198,000 (€ 293,000) in closing its bicycle production facilities.
Operating profit before goodwill amortisation and taxation was GBP 15,000 (€ 22,000) compared to a loss of GBP 123,000 (€ 182,000) for the same period last year. Turnover was GBP 16,143,000 (€ 23,870,000) compared to GBP 22,373,000 (€ 33,077,000) last year. The biggest factor in the reduced turnover was the loss of sales of the outdoor play and snooker and pool products previously sold by Pot Black. No dividend is proposed.
UK’s Tandem Group is supplying the brands of Falcon, Dawes, Claud Butler, Shogun, Tourismo, British Eagle and Optima. Production in the UK ceased in June 2006 with all bicycles now being specified and designed in the UK and manufactured abroad. According to Graham Waldron Tandem’s Chairman: “Going forward significant overhead and working capital savings will be made. Turnover in bikes was down in the six months compared to last year due to reduced sales to national retailers where margins are lower. Good progress has been made elsewhere in increasing the customer base with more potential to come.”
More on the ceasing of bike production in the UK at: http://www.bike-eu.com/news/article.asp?id=1936