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Premium Bikes Push Tandem Profits

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MANCHESTER, UK ( April 26) – Bicycle maker Tandem today said profits doubled last year after more riders clamoured to buy its top-of-the-range models. Tandem, which also makes snooker products and golf gear, lifted profits from GBP 609,000 (€ 897,357) to GBP 1.2 Million (€ 1.7 mn) during the year to January 31 after pulling […]

MANCHESTER, UK ( April 26) – Bicycle maker Tandem today said profits doubled last year after more riders clamoured to buy its top-of-the-range models.
Tandem, which also makes snooker products and golf gear, lifted profits from GBP 609,000 (€ 897,357) to GBP 1.2 Million (€ 1.7 mn) during the year to January 31 after pulling out of the budget market.
The improvement followed an increase in demand for premium bikes and was achieved despite a global shortage of components used in their manufacture.
Tandem owns the Dawes bike business and Falcon, which claims to be the UK’s oldest volume bicycle maker with a history spanning more than 120 years.
Brands include Shogun, British Eagle, Optima and Claud Butler and its ranges cover mountain bikes and specialist lightweight racing machines to BMX bikes.
Despite the profits improvement, chairman Graham Waldron said the overall results were disappointing with turnover dropping to GBP 52.7 million (€ 77.6 mn) during the year from GBP 56.9 million (€ 83.8 mn). He said: “With the actions taken in the last three years, opportunities for substantial sales and profit performance were in place, but in certain areas we failed to take full advantage of our improved position. I regret that we fell short of what was possible.”
Waldron also said the company faced a challenging market with retailers reporting a slow start to the year, but expectations remained for a satisfactory year. This boosted investors with shares in Tandem rising more than 20%. (Source: Manchester Business)

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