Tandem Group Plc · LSE:TND
Tandem — H1 2022 Earnings Presentation
25 slides from Tandem's earnings presentation, September 2022
Slide 1: Interim results presentation
Interim results presentation 6 months to 30 June 2022 September 2022
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with a
Slide 3: About us/our positioning
About us/our positioning ❑ Designers, developers, importers, distributors and retailers with offices and warehouses in Birmingham, Northampton, Felixstowe and Hong Kong (soon to be consolidated to Birmingham and Hong Kong only) ❑ Business segments: ❑ Toys, Sports & Leisure ❑ Bicycles – (junior & adu
Slide 4: Interim results H1 2022
Interim results H1 2022 ❑ Group revenue £12.9m (LY £19.3m) ❑ Gross profit £4.4m (LY £6.1m) Group Operating ❑ Gross margin 34.0% (LY 31.5%) expenses Net debt Revenue ❑ Operating expenses £3.8m (LY £4.1m) ❑ EBITDA before exceptionals £0.7m (LY £2.1m) -33% -7% £1.5m ❑ EBITDA £0.5m (LY £2.1m) ❑ Profit b
Slide 5: Interim results H1 2022 (cont.) Profit and Loss, Balance Sheet
Interim results H1 2022 (cont.) Profit and Loss Balance Sheet 6
Slide 6: Operational overview 2022
Operational overview 2022 ❑ Peter Kimberley has settled in well as CEO, bringing a new approach and new opportunities as he sets his vision and strategy for the Group ❑ A challenging first half to the year, but showing encouraging signs ❑ Group revenue downturn affected by cost of living crisis. Con
Slide 7: Toys, Sports & Leisure
Toys, Sports & Leisure ❑ Segment includes sales from all wheeled and other toys, outdoor sports and leisure ranges, including golf ❑ Despite the cost of living crisis, the toy industry has historically been recession resistant ❑ Market data indicates that retail sales are down over 16% to the end of
Slide 8: National Retail customers 2022
National Retail customers 2022 9
Slide 9: Key Licences 2022
Key Licences 2022 10
Slide 10: New Licences 2022
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Slide 11: Licensed
Licensed 12
Slide 12: Own Brand
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Slide 13: Golf
Golf ❑ Golf turnover is behind 2021 and 2020 (COVID19 years) but ahead of 2019 ❑ Further increase in distribution and partnerships in both the UK and Europe ❑ Growing opportunities in Women’s and Junior segments ❑ Continued MoM display advertising investment across category-leading consumer titles 1
Slide 14: Bicycles
Bicycles ❑ Segment comprises all bicycles and cycle accessories turnover from independent dealers, national retailers and online customers for cycles with at least a 12” wheel but excluding e-Bikes ❑ Revenue down 55% on the prior period (COVID pandemic had enhanced prior year figures) ❑ Bicycle sale
Slide 15: Bicycles (cont.) Our brands
Bicycles (cont.) Our brands: 17
Slide 16: Home & Garden
Home & Garden ❑ Home & Garden segment comprises sales made predominantly by our Expressco direct to consumer business ❑ Revenue approximately 55% behind LY ❑ Reduction in discretionary spending has hit this sector particularly hard ❑ Continued investment in our websites, including consolidating our
Slide 17: E-mobility
E-mobility ❑ E-mobility segment includes: ❑ E-bicycles ❑ E-scooters ❑ Mobility scooters ❑ Electric golf trolleys ❑ Revenue down 34% ❑ Largest potential ❑ Successful launch of new dedicated e-mobility website - electriclife.co.uk ❑ E-mobility retail shop build is underway ❑ Government still to announ
Slide 18: E-mobility
E-mobility Electric Motorbikes / mopeds Electric Bikes ❑ Electric bikes are now 30% of overall bike purchases * ❑ Electric bikes are now 23% of overall cycle market value * ❑ UK ministers are being urged to promote e-bikes to tackle health and climate crises ** * according to data from the Bicycle A
Slide 19: Marketing and Digital
Marketing and Digital ❑ Appointment of Senior Marketing Specialist in Q2 ❑ Optimised PPC campaign bidding to all D2C websites introducing ‘Google Performance Max’, where we are already seeing efficiency ❑ Return on Advertising Spend +87% and Cost per acquisition positively dropping -35%* ❑ Introduct
Slide 20: E-Commerce
electriclife.co.uk E-Commerce Fully transactional e-commerce platform successfully launched 19
Slide 21: Social media
Social media ❑ Strategic focus applied across key channels and accounts resulting in improved reach and brand visibility ❑ Recently embarked on developing community and brand focused content with increased posting cadence and motion content ❑ Increased organic engagement, uplift in our followers and
Slide 22: Birmingham warehouse project update
Birmingham warehouse project update ❑ Still on track for completion prior to the year end ❑ Additional GIA 81,363 ft² ❑ Efficiencies include : ❑ Centralised operations ❑ Reduction in overheads ❑ Additional capacity ❑ Solar powered installation ❑ Minimise environmental impact of build 21
Slide 23: Birmingham E-mobility retail showroom project update
Birmingham E-mobility retail showroom project update ❑ Formal planning permission received ❑ Construction underway – completion expected November 2022 ❑ Largest range of e-mobility products in the UK ❑ E-bikes / E-scooters / E-motorbikes / E-golf trolleys / Mobility scooters ❑ On-site test ride trac
Slide 24: Green Credentials
Green Credentials ❑ Sustainable climate friendly products which promote a healthy lifestyle ❑ Most of our products are either human powered or clean energy powered with almost zero emissions ❑ Bikes are estimated to generate 30 times fewer emissions than a motor car ❑ The majority of our products pr
Slide 25: Statement from our CEO
Statement from our CEO “Group revenue to 31 August 2022 was 35% behind the prior year at £18.0m compared to £27.6m last year, however, this has slowed from being 43% behind at the end of April. Our supply chain challenges have begun to ease and we have seen high freight costs beginning to reduce, sh