News

BRIGG, UK – “No, it has nothing to do with a financial restructuring, or trying to find additional investors,” says Steven W. Bell, MD of Falcon Cycle Ltd. which is part of the Tandem Group. Despite the fact that Tandem’s bike business was down last year, the company is buying its own shares.

On the 22 February 2008 it purchased 1,6 million of its own shares while it intends to buy much more. Tandem Group is seeking approval for that action at an extra shareholders meeting that will take place 21st July, 2008.

Tandem Group plc Chairman Graham Waldron explains the buying of shares in his statement on the company’s 2007 results. He says: “A large number of shareholders own a small number of shares, which they find uneconomical to sell. We are therefore offering shareholders holding 1,000 shares or less the opportunity, for a limited period, to sell their shares without any dealing costs. They will also be offered the opportunity to purchase more shares at a reduced fixed commission rate. Decreasing the number of small shareholders will reduce the administration costs of the Company.

Bicycles sold increased

Tandem Group’s turnover for the year ended 31 January 2008 was GBP 34,878,000 (€ 43.8 mn) compared to GBP 33,785,000 (€ 42.5 mn) last year. There was a profit before taxation of GBP 1,105,000 (€ 1.4 mn) compared to GBP 649,000 (€ 816,000). The total number of bicycles sold increased by 4.8% over the previous year. With lower sales of higher priced models, due predominantly to the bad weather, revenue in our cycle businesses was down by 5.9%.

Falcon Cycles and Dawes Cycle Ltd. comprise Tandem’s bike business. Falcon operates some of the UK's most famous bicycle brands like Claud Butler, Falcon, Scorpion, and Optima. The company, based in Brigg, recently switched from producing to sourcing bikes. Dawes Cycle Ltd. is more focesed on high end bikes.