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Big Loss for UK Tandem Group

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MANCHESTER, UK The Tandem Group that (among other companies) operates UKs well known bike brands of Falcon, Dawes, Claud Butler, Shogun, British Eagle and Optima, scored a big loss during its fiscal year that ended 31st January 2006. There was a loss before taxation of GBP 2,157,000 ( 3,174,000) compared to a profit last year of GBP 1,179,000 ( 1,734,000).

Big Loss for UK Tandem Group

MANCHESTER, UK – The Tandem Group that (among other companies) operates UK’s well known bike brands of Falcon, Dawes, Claud Butler, Shogun, British Eagle and Optima, scored a big loss during its fiscal year that ended 31st January 2006. There was a loss before taxation of GBP 2,157,000 (€ 3,174,000) compared to a profit last year of GBP 1,179,000 (€ 1,734,000). The Group turnover dropped heavily during the 2005/2006 fiscal year; with 18.8% from GBP 52.7 million (€ 77.5 mn) to GBP 42.8 mn (€ 69.9 mn). After deducting exceptional costs and goodwill amortisation and impairment the operating loss was GBP 1,796,000 (€ 2,641,000).
 
Tandem’s turnover in the bicycle business was lower than the previous year. The company doesn’t specify the turnover nor the drop in revenue for this part of its business but states: “We maintain the policy of withdrawing from low margin business with questionable profitability. Although there are no reliable statistics produced
it was generally believed that sales in the UK of lower priced bikes in 2005
were down on the previous year in line with the difficult market conditions.”
About the production of Tandem’s bike brands Falcon, Dawes, Claud Butler, Shogun, British Eagle and Optima, this trade journal already reported in April on the company’s intention to close the UK production line for Falcon which is the oldest volume bike makers in the UK with a over 120 year history. In its financial statement on the 2005/2006 result Tandem Group said: “Production at the Group’s manufacturing facilities in the UK has been reducing over the last few years and has been concentrating on the higher value bikes. This will cease in the summer of 2006
as production is moved abroad. Overhead savings will be made which, together
with a reduction in working capital, should lead to increased profitability.”

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