Tandem Group Plc · LSE:TND
Tandem — Investor Presentation (March 2021)
26 slides from Tandem's investor presentation, March 2021
Slide 1: Investor presentation March 2021
Investor presentation March 2021
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: Operational highlights 2020
Operational highlights 2020 ➢Domestic B2B strong, both licensed and own brands ➢B2B FOB impacted by COVID ➢New licences signed ➢Resurgence of bicycles, growth in ebikes and escooters ➢Golf very strong ➢Increasing importance of B2C ➢B2C outdoor and indoor products both performed well ➢New websites an
Slide 4: Birmingham property project
Birmingham property project Post completion arrangements with vendor ➢Short term lease Tandem Group plc • From completion to 30 June 2021 • Whole site occupancy • Rental income £48,500 ➢Long term lease • From 1 July 2021 • 10 year lease with 5 year break • Approx. 0.5 acres • Rental income £44,500 p
Slide 5: Financial highlights 2020
Financial highlights 2020 ➢Revenue £37.1m (LY £38.8m) ➢Gross profit 32.9% (LY 30.4%) ↑2.5% ➢Gross profit £12.2m (LY £11.8m) ↑3.4% ➢Operating expenses £8.1m (LY £8.8m) ↓7.5% ➢Profit before tax £4.0m (LY £2.5m) ↑59.7% ➢Basic EPS 68.5p (LY 40.5p) ➢Total dividend 8.62p (LY 6.60p) ↑30.6% ➢Cash at bank £6
Slide 6: Profit before tax (£'000)
Profit before tax (£'000) 4,500 4,000 4,004 3,500 3,000 2,500 2,507 2,000 1,890 1,872 1,500 1,000 914 500 - 31 December 2016 31 December 2017 31 December 2018 31 December 2019 31 December 2020
Slide 7: Earnings per share (pence)
Earnings per share (pence) 80.0 70.0 68.5 60.0 50.0 40.0 40.5 35.0 30.0 32.3 20.0 16.0 10.0 0.0 31 December 2016 31 December 2017 31 December 2018 31 December 2019 31 December 2020
Slide 8: Dividend per share (pence)
Dividend per share (pence) 10.00 9.00 Final 8.00 Special 7.00 Interim 6.00 5.50 5.00 3.04 4.00 3.00 2.75 2.89 2.40 2.50 2.60 2.00 2.10 2.20 2.30 2.00 2.00 3.12 1.00 1.15 1.20 1.25 1.30 1.35 1.42 1.56 1.00 1.05 1.10 - 31 January 2011 11m 31 31 December 31 December 31 December 31 December 31 December
Slide 9: (Interest bearing debt)/Net cash (£'000)
(Interest bearing debt)/Net cash (£’000) 4,000 3,779 2,000 1,846 107 0 £'000 (1,016) (2,000) (4,000) (4,197) (6,000) (5,650) 2015 2016 2017 2018 2019 2020 Year
Slide 10: Net Assets (£'000)
Net Assets (£’000) 22,500 20,000 17,500 16,608 15,000 14,311 12,408 12,500 11,068 £'000 10,000 8,214 7,819 7,500 6,586 5,640 5,000 2,500 0 2013 2014 2015 2016 2017 2018 2019 2020 Year
Slide 11: 2020 Review
2020 Review Impact of COVID • Early and continued disruption amongst Far East supply base • Bricks and mortar store closures in U.K • Initial panic and risk aversity amongst key major customers • FOB order deferrals and cancellations • Increased reliance on domestic supply/stock (little and often) •
Slide 12: B2B - Toys/Sports
B2B - Toys/Sports • A difficult year as some major Nationals Accounts ‘pulled up the drawbridge’ on their bulk FOB business (due to uncertainty) and many toy chains/stores were closed throughout lockdown 1 • The more entrepreneurial and agile online customers gained as they came for available domest
Slide 13: B2B - Bicycles
B2B - Bicycles • The COVID pandemic re-energised a static leisure cycling market • Total bike sales increased significantly in 2020 • Driven by performance of core brands across corporate and independent accounts • Dawes, Claud Butler, Falcon, Boss and Squish all saw significant growth despite suppl
Slide 14: B2C
B2C • All websites re-launched on a new platform and a new digital agency • Significant growth in both traffic and sales on Garden Comforts (Garden & Camping), At Home Comforts (Jack Stonehouse) and Pro Rider Leisure websites • Traffic down on mobility due to COVID • Growth and better A+ on 3rd part
Slide 15: 2020 Summary
2020 Summary • A strong commercial year under exceptional circumstances • Gross Profits up (3.4%) Tandem Group plc • Fuelled by strong domestic margin enhancing sales performances across bikes, golf and B2C businesses • Group revenues down (-4.6%) • Driven by decline in toy FOB bulk buys/key license
Slide 16: 2021 Challenges
2021 Challenges • Supply Chain • Significant disruption with inflationary impact • Freight rates up sevenfold at peak on 2020 rates. Currently fivefold • Yuen to dollar exchange rate depreciation forcing cost price increases • Increase in raw materials and components forcing further cost inflation •
Slide 17: 2021 Outlook
2021 Outlook • Over 200 new toy products available in 2021 • Seven new licenses signed. • Li-Fe and Wired e-scooter ranges expanded to include kids models and new HC series • New and refreshed designs on Stunted/uMoVe • 3 new Kickmaster items • New Hedstrom Musical Toddler Swing and mud kitchen seri
Slide 18: Key Licenses 2021
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Slide 19: New Licenses 2021
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Slide 20: New Licensed Products 2021
New Licensed Products 2021
Slide 21: New Own Brand Launches 2021
Tandem Group pic 2021 New Own Brand Launches | he
Slide 22: Cycles 2021
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Slide 23: New E-scooters 2021
New E-scooters 2021
Slide 24: Golf 2021
Tandem Group pic
Slide 25: Tandem Group pic
Tandem Group pic
Slide 26: B2C 2021
B2C 2021