Tandem Group Plc · LSE:TND
Tandem — Investor Presentation (October 2024)
32 slides from Tandem's investor presentation, October 2024
Slide 1: Investor Pack October 2024
m Group pic Tandem:Group pic
Slide 2: Tandem Group plc
Tandem Group plc Peter Kimberley Phil Ratcliffe Gurvinder Kaur Charlie Foulkes Group Group Group Group Chief Executive Commercial Director Chief Financial Digital & Marketing Officer Officer Director
Slide 3: Agenda
AGENDA • About Us • 2024 H1 Finance Update • 2024 YTD Overview • 2024/2025 Outlook • Electric Life Shop & Website • Warehouse Operations • Summary • Q&A
Slide 4: Tandem Group pic
Tandem Group pic
Slide 5: About Us
About Us UK based designers, developers, importers, distributors and retailers of sports, leisure, home & garden. 1. Toys, Sports & Leisure: wheeled toys, outdoor play, football training 2. Bicycles: adult, junior & kids’ in both traditional and eBike ranges 3. Home & Garden: gazebos, garden furnitu
Slide 6: Group Mission
Group Mission Shareholder Value Profitability “Maximise shareholder value by operating cost efficiently, remaining customer orientated and delivering profitable activity across all business divisions” Customer Orientated Cost Efficiencies
Slide 7: 2024 H1 Finance Update
2024 H1 FINANCE UPDATE
Slide 8: H1 Financial Performance
2024 H1 Financial Performance Investing In Our Future Strong Balance Sheet Positive Cash Balance Property, plant & equipment Net assets Cash and cash equivalents £15.3m £23.3m £0.8m (+£0.4m YoY) (-£2.6m YoY) (-£1.2m YoY) Loss Before Interest & Tax Margin Improvement Interest Rate Control Loss Gross
Slide 9: Financial Outlook
2024 Financial Outlook Results and outlook FY22 FY23 FY24E* Revenue £26.7m £22.2m £26.5m Gross profit £7.8m £6.0m £8.0m Costs (incl exceptionals) £6.7m £6.9m £7.0m Finance costs £0.2m £0.3m £0.5m Profit/(loss) before tax £0.9m (£1.2m) £0.5m *Cavendish Capital Markets, current market expectations of
Slide 10: 2024 YTD Overview
2024 YTD OVERVIEW TO END OF AUGUST
Slide 11: Retail Landscape
2024 Retail Landscape Challenging but improving environment • Poor weather leading to depressed summer period • Consumer confidence remains low • Improving economic climate/cost of living crisis • Customers continuing to de-risk FOB with domestic • Freight disruption and increased lead times in H1 •
Slide 12: YTD Toys, Sports & Leisure
2024 YTD Toys, Sports & Leisure Headlines • Despite lower consumer spending, ensuing • In discussion with a further major National for 2025 retailer caution and poor summer weather the business performance is up YOY • Top preschool licenses Peppa Pig, Paw Patrol, Bluey, Stitch and Spidey & Friends •
Slide 13: MV Sports Licensed Brands
2024 MV Sports Licensed Brands Long-term relationships with major licensors (25 years+)
Slide 14: 2024 New Product MV Sports
Kickmaster 2024 New Product Adjustable Rebounder MV Sports 12” Licensed Balance Bikes with Light Up Wheels Licensed Playmats Kickmaster Free Standing Football Table 6v Bluey 4 x 4 Powered Ride On Squishle Scooters - Licensed & MoVe brand Licensed Fast Fold & Toddler Swings 6v Bumper Cars Stitch & So
Slide 15: YTD Electric Bikes
2024 YTD Electric Bikes Headlines Milestones • YTD sales of own brand e-bikes -13% YoY • Developed a full range of 21 own brand e-bikes • BA have reported that UK eBike volumes fell by covering all disciplines and all at affordable price 9% H1 2024 vs 2023 points • Annualising strong sales from Pure
Slide 16: New Product Electric Bikes
2024 New Product Electric Bikes Claud Butler Wrath 2.0 Dawes Scenic LS & CB Dawes Arc Claud Butler Wrath 1.0 Falcon Horizon LS & CB Falcon Flow Claud Butler Ridge 1.0 Falcon Zone Falcon Compact
Slide 17: YTD Mechanical Bikes
2024 YTD Mechanical Bikes Headlines • Released three new models in our Squish • YTD sales mechanical +20% YoY balance bike range. • YTD sales of our premium lightweight • Designed and produced a co-branded Squish x children’s brand Squish were up +31% YoY Bikeability helmet. • The BA reported mechan
Slide 18: New Product Mechanical Bikes
2024 New Product Mechanical Bikes Claud Butler Alpina 2.0 Squish 14” Balance & Bikeability Dawes Discovery Hybrid Range Claud Butler Alpina 1.0 Squish 12” Balance Dawes Venture Hybrid Range Dawes Cambridge Mint Falcon Jade 20” / Venus 24” Claud Butler Haste 1.0 & 2.0
Slide 19: YTD Golf
2024 YTD Golf Headlines Milestones • Ben Sayers sales +4% YoY • Launched a range of Pro Rider golf equipment including electric trolleys, junior and adult • Pro Rider sales +85% YoY package sets and bags • Datatech: Q1 showed a 25% decline in overall UK sales and Q2 showed an improvement to a • Grew
Slide 20: New Product Pro Rider Golf
2024 New Product Pro Rider Golf Pro Rider Deluxe Stand Bag Pro Rider 18-Hole Lithium Pro Rider PR1 Stand Bag Electric Golf Trolley Package Set Pro Rider Deluxe Cart Bag Pro Rider 6” Stand Bag Pro Rider 36-Hole Lead Acid Pro Rider JR1 Junior Package Set Electric Golf Trolley
Slide 21: YTD Home & Garden
2024 YTD Home & Garden Headlines Milestones • Sales of Home & Garden -17% YoY • Jack Stonehouse website Users +6% / SEO Sessions +160% YoY • H1 Unseasonal weather, impacting Cooling & Heating • New strategic Far East sourcing, rationalization of supplier base by 28% • Enhanced Product margin +10% Yo
Slide 22: New Product Home
2024 New Product Home 12000btu Air Conditioner / Air Venting Kit DC Vortex Portable Air Cooler Air Circulator Fan New Style Radiator Covers Ceiling Fans
Slide 23: New Product Garden
2024 New Product Garden Roma Square Cantilever Wooden Parasol & New Bases Wall Mounted Pergola Electric & Manual Awnings Triple Wheelie Bin Storage Outdoor Sofa & Seating Sets Improved Gazebo Range
Slide 24: 2024/2025 Outlook
2024/2025 OUTLOOK
Slide 25: 2024/25 Outlook Toys, Sports & Leisure
2024/25 Outlook Toys, Sports & Leisure • Set up to support retailers favouring domestic/online drop-ship model to mitigate stock risk • Countering cost of living and high freight rates, supplier costs continue to fall • Signs of recovery with some retailers returning to FOB trading • New film / TV s
Slide 26: 2024/25 Outlook Bikes
2024/25 Outlook Bikes • Largest category potential for the group, forecasting significant growth in H2 2024 & 2025 • Strengthen our position as No. 1 supplier of ‘value for money’ bikes to national retailers • Launching new range of MTB, hybrids and eBikes targeting sub-£1000 segment • Expanding our
Slide 27: 2024/25 Outlook Golf
2024/25 Outlook Golf • Grow sales of Ben Sayers through established national retailer channels • Focus on core range of high-volume SKUs via dropship, domestic or FOB stock • Utilise direct containers into key-retailer reducing freight/warehousing costs and improving margin • Champion electric troll
Slide 28: 2024/25 Outlook Home & Garden
2024/25 Outlook Home & Garden • 147 SKU’s listed / +22% new products added by year end • Sales opportunity from B2B bulk orders, extended Black Friday & Christmas promotional activity • Declining freight costs, holding stronger L4L stock position to support Q4 trading • Build upon marketplace perfor
Slide 29: Electric Life Shop & Website
Electric Life Shop & Website • World class brands including Cannondale, Orbea, VanMoof, Whyte, Tern and GoCycle, alongside our own established value-for-money brands; Claud Butler, Dawes and Falcon. • Specialist on-site public showroom • Website growth; conversions +105%, transactions +167% YoY to A
Slide 30: Warehouse Operations
2024/25 Warehouse Operations • Completely self-sufficient – our 160,000 sqft premises owned by the group • Perfectly located adjacent to our existing premises • Commercial and strategic benefit • Cost saving efficiencies being realised • Solar panel installation • BREEAM compliant
Slide 31: Summary
Summary Strong Balance Talented Exploring Sheet Colleagues Acquisitions Maximise Growing Increase Consumer Customer Base Market Share Reach Drive Freight New Product Operational Uncertainty Innovative Efficiencies
Slide 32: Disclaimer
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer DISCLAIMER 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