Interim Results

Tandem Group PLC
31 October 2001



Immediate                                                       31 October 2001

                               TANDEM GROUP PLC

                             Interim Results 2001


Tandem Group plc, the sports & leisure equipment group, and one of the leading
manufacturers and distributors of bicycles in the UK, today announced its
preliminary results for the six months ended 31 July 2001.


RESULTS
                                         6 months to 6 months to     Year ended
                                             31 July     31 July     31 January
                                                2001        2000           2001
                                           Unaudited   Unaudited        Audited
                                               £'000       £'000          £'000

Turnover                                      15,640      10,931         26,500

Operating profit before goodwill                 475         211            816
amortisation

Earnings per share                 pence        0.01        0.39           1.18
(basic and diluted)


KEY POINTS


*   Operating profit up 125%
*   Turnover increased by 43%
*   All businesses operating profitably and ahead of last year
*   Further potential acquisitions identified - negotiations in
    progress


Commenting on these results, Chairman Graham Waldron, said:

'The encouraging performance of the Group this year gives the Board confidence
to progress further by cautiously seeking additional businesses to acquire in
the sports and leisure equipment market.  Negotiations are taking place with a
number of companies where we have identified opportunities for profitable
growth through consolidation and operational synergies.

'The Group's overriding priority is to maintain the improvement in shareholder
value by increasing profitability and reducing debt.  The Board believes the
current financial year will mark a major step forward in this objective.'


For further information, please contact:
Mervyn Keene, Finance Director, Tandem Group plc                   01733 211399
James Fuller, Director, Haggie Financial Limited                  020 7417 8989


Chairman's interim statement


Introduction

I am pleased to report that the results for the six months to 31 July 2001
show an increase of 125% in operating profit before amortisation of goodwill
from £211,000 last year to £475,000.  Turnover increased by 43% compared to
last year, rising from £10.9 million to £15.6 million.


Review of interim results

Last year's results benefited from an exceptional gain of £628,000 in respect
of bank debt written off less bank fees.  Excluding this exceptional gain the
retained profit for the period after amortisation of goodwill, interest
payable and the finance costs of non-equity shares has improved by £243,000
over last year.  This is particularly encouraging as this year's results
include the seasonally loss making period for Pot Black for the first time.

All businesses increased operating profit compared to the previous year.


Following the acquisition of Dawes Cycles business on 26 June 2001 the Group
now consists of:

Falcon  One of the largest manufacturers of bicycles in the UK, with its brand
Cycles  names of Falcon, Claud Butler, Townsend and British Eagle amongst the
        market leaders.
Dawes   Dawes products are targeted at the upper price ranges for bicycles and
Cycles  have been highly acclaimed in the retail cycle press.
Pot     With a substantial market share of the home snooker and pool market Pot
Black   Black's traditional business centred on the autumn/winter market.  A
        new range of outdoor play products including swings and slides was
        introduced in the spring and has been well received by national
        retailers.
Two     A wide range of branded bicycle accessories are supplied to wholesalers
Wheel   and retailers.
Trading


Current trading

Cycles and accessories

The Group's largest subsidiary Falcon continues to make solid progress in a
highly competitive market. Margin growth is being achieved through improved
component sourcing and manufacturing efficiency.  With a good order book going
into the busy Christmas period, Falcon is expected to have a strong second
half-year and produce a significant increase in its full year operating profit
compared to last year.

Customer perception of Dawes and its model range has remained healthy since
acquisition.  Demand for this prestigious brand is strong and consequently
sales for the rest of this year are expected to be in line with our forecast
made at the time of acquisition.

Two Wheel Trading continues to grow sales, in particular through a new
division selling to retail customers.  With its range of well-known accessory
brands and a strengthened sales force, an improved profit performance is
anticipated for the full year compared to last year.

Sports and leisure equipment

Pot Black has achieved sales considerably ahead of expectations in the third
quarter, which is likely to result in the operating profit for that period
being in excess of our forecast at the beginning of the year.  The business is
now entering its busiest trading quarter when many of its products are
purchased as Christmas gifts.  Providing that consumer demand is in line with
expectations, the current order book, together with forecasts from major
customers, encourage your board to believe that Pot Black will be a major
contributor to the Group's profit for the year.



Future prospects

Our operations have strong management teams capable of taking the businesses
forward.  Firm financial controls along with prompt and detailed reporting
ensure that challenges are dealt with and opportunities are taken.

At the start of 2002 Dawes bicycles will be produced at the Falcon factory in
a reorganised facility.  This will lead to further cost savings and increases
in manufacturing efficiency.

Dawes and Two Wheel Trading's marketing, distribution and administration
functions will be accommodated in the same facility in the West Midlands later
this year which will result in improved utilisation of resources and reduced
overheads.

Pot Black's prospects for 2002 look most encouraging as further listings for
the outdoor play products have already been confirmed by some of the UK's
leading national retailers.



Summary

Your board is able to report a period of solid progress and prospects for a
much improved year in terms of trading profit.  Falcon continues to perform
creditably whilst Pot Black and Two Wheel Trading will make significant
contributions to the Group's profits and balance sheet.  Dawes should also
make an enhanced contribution following its relocation.

Our Corporate Social Responsibility Committee continues to monitor all Group
members and suppliers to ensure that our ethical and environmental standards
are achieved.

The encouraging performance of the Group this year gives the Board confidence
to progress further by cautiously seeking additional businesses to acquire in
the sports and leisure equipment market.  Negotiations are taking place with a
number of companies where we have identified opportunities for profitable
growth through consolidation and operational synergies.  We will keep
shareholders informed of developments and hope to be able to report positive
progress on some or all of these potential acquisitions in the coming months.

The Group's overriding priority is to maintain the improvement in shareholder
value by increasing profitability and reducing debt.  The Board believes that
the current financial year will mark a major step forward in this objective.



Graham Waldron
Chairman

31 October 2001


Consolidated profit and loss statement


                                     6 months to   6 months to       Year ended
                                    31 July 2001  31 July 2000  31 January 2001
                                       Unaudited     Unaudited          Audited
                                           £'000         £'000            £'000
Turnover
Continuing operations                     14,830        10,931           26,467
Acquisitions                                 788             -                -
Discontinued operations                       22             -               33
                                      ----------     ---------        ---------
                                          15,640        10,931           26,500
                                      ----------     ---------        ---------
Operating profit
Continuing operations                        377           211              773
Acquisitions                                  76             -                -
Discontinued operations                       22             -            (274)
Release/utilisation of prior year              -           3/4              317
provision
                                         -------       -------          -------
                                             475           211              816
Amortisation of goodwill                    (61)             -             (39)
                                         -------       -------          -------
Operating profit on ordinary                 414           211              777
activities before interest
Net interest payable                       (367)         (407)            (846)
Bank debt written off less bank fees           -           628            1,731
                                         -------       -------          -------
Profit before taxation                        47           432            1,662
Taxation                                       -             -                -
                                         -------       -------          -------
Profit after taxation                         47           432            1,662
Finance costs of non-equity shares          (33)          (33)             (65)
                                         -------       -------          -------
Retained profit for the period                14           399            1,597
                                         -------       -------          -------


Earnings per share
Basic                                      0.01p         0.39p            1.18p
Diluted                                    0.01p         0.39p            1.18p

Adjusted before goodwill amortisation
Basic                                      0.04p         0.39p            1.21p
Diluted                                    0.04p         0.39p            1.21p


Consolidated balance sheet


              31 July 2001              31 July 2000            31 January 2001
                 Unaudited                 Unaudited                    Audited
                     £'000                     £'000                      £'000

Fixed assets
Intangible           2,762                         -                      2,260
assets
Tangible             1,375                       990                      1,514
assets
                  --------                    ------                   --------
                     4,137                       990                      3,774
                  --------                    ------                   --------
Current assets
Stocks               6,461                     5,146                      6,010
Assets for               -                       586                          -
resale
Debtors              7,921                     5,031                      4,187
                 ---------                 ---------                  ---------
                    14,382                    10,763                     10,197
                 ---------                 ---------                  ---------
Creditors
Amounts
falling due
within one
year
Bank                 5,875                     9,215                      4,175
overdrafts
Other               10,399                     5,921                      7,724
creditors
                ----------                 ---------                  ---------
                    16,274                    15,136                     11,899
                ----------                 ---------                  ---------

Net current        (1,892)                   (4,373)                    (1,702)
liabilities
                ----------                 ---------                  ---------
Total assets         2,245                   (3,383)                      2,072
less current
liabilities

Creditors
Amounts                  -                        11                         50
falling due
after more
than one year
Provisions for         129                       446                        129
liabilities
and charges
                  --------                  --------                   --------
Net assets/          2,116                   (3,840)                      1,893
(liabilities)
                  --------                  --------                   --------

Capital and
reserves
Called-up            9,214                     5,106                      9,046
share capital
Share premium        5,103                     4,427                      5,040
account
Capital                406                       406                        406
reserve
Profit and        (13,720)                  (14,995)                   (13,739)
loss account
                ----------                ----------                 ----------
Equity               1,003                   (5,056)                        753
shareholders'
funds
Non-equity           1,113                     1,216                      1,140
minority
interests
                 ---------                 ---------                   --------
                     2,116                   (3,840)                      1,893
                 ---------                 ---------                   --------



Notes to the interim report


1     Basis of preparation

The interim financial statements have been prepared using accounting policies
stated in the Group's report and accounts for the year ended 31 January 2001
and are unaudited.  The summary of results for the year ended 31 January 2001
does not constitute full financial statements within the meaning of the
Companies Act 1985.  The report and full financial statements for that period
have been filed with the Registrar of Companies and contain an unqualified
audit report.


2      Earnings per share

The calculation of earnings per share is based on the net profit for the
period of £14,000 (2000 - £399,000) and on an average of 201,024,820 (2000 -
101,235,192) ordinary shares in issue during the period.  Diluted earnings per
share is after taking into consideration share options and gives an average of
201,024,820 (2000 - 101,700,947) ordinary shares.


3      Movement in equity shareholders' funds

                               6 months to   6 months to             Year ended
                              31 July 2001  31 July 2000        31 January 2001
                                     £'000         £'000                  £'000


Profit for the period                   47           432                  1,662
Non-equity minority interests         (33)          (33)                   (65)
Re-classification of preference          5             -                     58
dividends
Issue of share capital                 231           550                  5,103
                                   -------        ------               --------
                                       250           949                  6,758
Opening equity shareholders'           753       (6,005)                (6,005)
funds/(deficit)
                                   -------       -------                -------
Closing equity shareholders'         1,003       (5,056)                    753
funds/(deficit)
                                   -------      --------                -------