Business
Trading Statement
Trading Statement.
About this update from Tandem Group Plc
[{"type":"text","content":"\n \nRNS Number : 6315R Tandem Group PLC 04 March 2019 \n\nTandem Group plc\n(the \"Group\")\n \nTRADING UPDATE\n \n \nTandem Group plc (AIM: TND), designers, developers, distributors and retailers of sports, leisure and mobility equipment, announces a trading update ahead of its annual results for the year ended 31 December 2018 which are due to be announced in April 2019.\n \nTrading and operations\n \nAs previously reported, the first half of 2018 was characterised by exceedingly poor weather in February and March, large overstocks with a certain national retailer, other customers actively trying to de-stock and the ongoing impact of the demise of Toys R Us. As a result, revenue was nearly 30% behind the same period in 2017.\n \nHowever, in the second half of 2018 the Group experienced revenue growth of nearly 6% as it recovered from the poor start to the year. This was despite a difficult economic backdrop and a number of negative indicators both in the macro economy and indicators specific to our sectors. As an example, the UK outdoor toy market was reported to have declined by 17% in 2018. \n \nAlthough there was a reduction in revenue of approximately 12% to £32.5 million for the year ended 31 December 2018, the Group's profit before tax for the year is expected to be only marginally behind the prior year.\n \nRevenue from the toys business was behind the prior year but much less so than the reported overall market decline. The recovery in revenue gathered greater momentum as the year progressed.\n \nIn licensed wheeled toy categories, our L.O.L Surprise! licence was the standout performer during the year. In other licences, Paw Patrol, Batman, Peppa Pig and Disney Princess made a solid contribution.\n \nIn our own brands, Hedstrom continued to perform ahead of the prior year and our new brand, U-Move performed strongly. Following a challenging year in 2017 for Ben Sayers, revenue recovered in 2018 and was 15% ahead of the previous year.\n \nFor the first time in many years, MV Sports & Leisure exhibited at the Nuremberg Toy Fair at the end of January 2019 with positive feedback following the show. This was in addition to the excellent response from our recent exhibition at the London Toy Fair.\n \nWe were delig...