Tandem reports increased profits yet bleak outlook for 2022

Tandem’s share price tumbled 18.6% to 406.6p in early morning trading on Monday following the release of a bleaker outlook and reduced order book in 2022.

The company reported a 10.4% increase in revenue to £40.9 million compared to £37 million in 2020.

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Tandem announced a gross profit increase to £12 million against £11 million in 2020 and an operating profit increase to £4.9 million compared to £4 million in 2020.

The sports, leisure and mobility firm attributed its revenue to growth across three of its four operating divisions which grew 14%, with the exception of bicycles due to stock availability problems.

The company also saw an 8% increase in revenue from its Toys, Sports and Leisure division.

However, Tandem reported a 43% decline in revenue in the 11 weeks to March 20 2022 compared to the same period in 2021.

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The group mentioned a sales order book of £16.3 million against an order book of £27.3 million during the same period in 2021.

Tandem blamed the reduced order book income on the fulfilment of back orders, cancellations and a reduced volume of orders received by the company.

However, the group caveated its outlook with a comparison to its 2020 results reporting a £5.1 million order book.

Tandem said its Board remained confident in its long term growth prospects but is currently approaching 2022 with “a degree of caution given the challenges that we along with many other businesses face.”

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