Tandem Group Improves Profitability as Bikes and Home & Garden Drive Growth

Tandem Group plc (LSE:TND) reported a resilient performance for the year ended 31 December 2025, with revenue increasing 6.2% to £26.2m despite subdued consumer confidence and ongoing macroeconomic pressures. A strong first half, tighter cost discipline, careful inventory management, and favourable currency movements supported improved profitability, with profit before tax and exceptional items expected to be slightly ahead of market expectations.

Performance varied across divisions. Toys, Sports and Leisure revenue fell 17.5% as discretionary spending weakened and retailer buying patterns shifted, although licensed wheeled products and own-brand ranges continued to make progress. By contrast, the Bicycles division delivered a 37.6% revenue increase, driven by strong demand for both electric and mechanical bikes and a solid performance in children’s bikes, supported by the launch of the new HOY range in collaboration with Sir Chris Hoy. Golf revenue rose 8.6%, benefiting from momentum in the Pro Rider portfolio, while Home & Garden sales surged 30.1% on strong demand for heating, cooling, and outdoor products, aided by trend-led new product launches.

Trading at the start of 2026 has been in line with management expectations. The group is targeting FY2026 revenue growth broadly in line with FY2025, alongside further margin and profit improvements. Growth plans are supported by new national retail partnerships, continued product innovation, opportunities for European expansion, and a robust balance sheet. Tandem is due to publish its full-year 2025 results on 23 March 2026, with a presentation to be made available on its website.

From a market perspective, the outlook remains mixed. While improved profitability and recent insider share purchases provide positive signals, bearish technical indicators, a relatively high P/E multiple, the absence of a dividend, and negative cash flow weigh on sentiment.

More about Tandem Group plc

Tandem Group plc is an AIM-listed company that designs, develops, distributes, and retails sports, leisure, and e-mobility products. Its portfolio includes toys, sports and leisure equipment, bicycles and e-bikes, golf products, and an expanding home and garden range, with a focus on branded, licensed, and own-label products sold through national retail and distribution partners.