Tandem Group (LSE:TND) reported a 6.2% increase in revenue for 2025 to £26.2 million, supported by strong performance in its bicycles, golf, and home and garden segments. The gains helped offset weaker demand in toys, sports and leisure, where sales were affected by softer discretionary spending and changing purchasing patterns among retailers.
The company also strengthened its financial position during the year. Gross margins improved, net debt was reduced by more than half to £1.9 million, and Tandem returned to statutory profitability, reporting diluted earnings per share of 15.4p. The board has proposed reinstating a dividend of 3.0p per share and noted a positive start to trading in 2026. In addition, the group announced a board transition, with chair Steve Grant set to step down and be replaced by non-executive director Jonathan Crookall at the upcoming AGM.
Bicycle sales were a major driver of growth, rising 37.5% to £10.2 million as demand for both electric and traditional bikes remained strong, supported by the launch of the HOY range. In the toys and leisure division, online marketplace sales increased significantly even though overall segment revenue declined. The home and garden segment delivered a 30.1% increase in sales, driven by strong demand for heating and cooling products during periods of extreme weather, while golf revenue rose 8.6% on the back of product innovation and new ranges.
These improvements helped lift operating profit before exceptional items to £968,000 and increased net assets to £26.1 million. Tighter inventory management also reduced stock levels, further strengthening the balance sheet.
Despite the operational progress, Tandem’s outlook is influenced by valuation and market signals. The company’s relatively high P/E ratio suggests potential overvaluation, while recent insider share purchases provide a supportive signal. However, the absence of dividend yield historically and negative cash flow remain factors weighing on the overall assessment.
More about Tandem Group plc
Tandem Group plc is a UK-listed designer, developer, distributor and retailer of sports, leisure and mobility products. Its portfolio spans bicycles, toys, sports and leisure equipment, golf products, and home and garden ranges. The company sells through a mix of retail partners and direct-to-consumer channels, including its Electric Life brand showroom and online platform.
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