UK Tandem Group’s Bike Business Down
BRIGG, UK – Tandem Group PLC saw its bicycles and accessories businesses revenue decrease by 19.4% to GBP 7,187,000 (8,519,440 euro) (2012 – GBP 8,917,000 (10,570,175 euro) in the first half of 2013. This was as a result of both inclement weather conditions during the period coupled with reduced sales in the company’s corporate bicycles business.
The company’s financial report further notes, “Notwithstanding the adverse conditions, revenue from our ‘drop handlebar’ road cycle ranges were ahead of the prior year and sales of parts and accessories showed further growth. Performance from our BMX ranges however was disappointing reflecting the current market trend away from BMX cycles.”
During the first half year Tandem was faced with exceptional costs of GBP 58,000 (68,752 euro) because of, “Redundancies which were incurred following a rationalization of operations in the Claud Butler business subsequent to the transfer of corporate bicycle business to MV Sports & Leisure at the beginning of the period.”
Hot summer helped
In its trading update for the 37 week period to 13 September Tandem Group reports that its bicycles and accessories businesses revenue to was approximately GBP 11.2 million (13.3 million euro) against GBP 13.0 million 15.4 million euro) in the prior year. The company notes, “The hot summer has helped our independent cycle dealer businesses, although we are only just starting to see a recovery in our corporate business. We remain optimistic that this should gather momentum in the remaining months of this year and into 2014.”