Trading Update and AGM arrangements

RNS Number : 1398O

Tandem Group PLC

28 May 2020

 

Tandem Group plc

(the "Company" or "Group")

TRADING UPDATE AND ANNUAL GENERAL MEETING ("AGM") ARRANGEMENTS

Tandem Group plc (AIM: TND), designers, developers, distributors and retailers of sports, leisure and mobility equipment, announces a trading update and update on the arrangements for the AGM, in light of the COVID-19 pandemic .

Trading and operations

The impact of COVID-19 on the Group's trading has been mixed.  Bicycle sales have been materially higher with year to date revenue 77% ahead of the prior year and the forward order book significantly higher than last year to date.  This has invariably placed a strain on the supply chain where we are working hard to replenish stocks as quickly as possible which has been hampered by the various degrees of lockdown in our countries of supply.

Online sales, both direct to consumer and with our national retailer partners have also been strong. Outdoor products, including Hedstrom and Airwave outdoor play, Kickmaster football training, Airwave trampolines, spas, gazebos and parasols have sold well as have a number of our Jack Stonehouse domestic electrical appliances.  Although the supply chain from China suffered in the early part of the year, this is now broadly back to normal with regular supplies being received.

In the national retailer business, however, our customers have been more cautious, with the majority of toy shops closed.  Although there have been few cancellations, a number of orders have been delayed which, despite the stronger online domestic sales referred to above, has had a material impact on revenue.  National retailers have also been slower to place new orders until they have greater clarity of the situation.  As a result, the national retailer order book is approximately 21% behind the previous year.

Year to date Group revenue is slightly ahead of the prior year, although the overall Group order book is approximately 3% behind last year.  We therefore expect Group revenue to fall behind the prior year during the Summer period as a result of the lack of national retailer FOB orders and a limited supply of bicycles. 

At this stage it remains difficult to ascertain the overall impact on the full year but we will make a further update at the AGM and continue to update the market as and when we have greater visibility.

AGM arrangements

In light of the latest Government guidance in relation to COVID-19 with respect to social distancing, public gatherings and being "COVID secure", we are planning for the AGM be convened with the minimum quorum of shareholders present (to be facilitated by the Company) in order to conduct the business of the meeting.

In the interests of protecting the health and safety of the Company's shareholders, employees and the public, shareholders will not be admitted to the AGM.  However, the Company will continue to closely monitor the rapidly developing impact of COVID-19, including the latest Government guidance, and how this may affect the arrangements for the AGM.

Although shareholders will not be able to attend the 2020 AGM in person, they will still be able to ensure their votes are counted by submitting their proxies in accordance with usual practice.  In addition, shareholders will also be able to submit questions in advance of the AGM by emailing our dedicated shareholder email address [e-mail] , and answers to questions on key matters will be displayed on the Company's website. 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR).

Enquiries:

Tandem Group plc

Steve Grant, Chief Executive Officer

Jim Shears, Group Finance Director and Company Secretary

Telephone [phone]

Nominated Adviser

Cairn Financial Advisers LLP

James Caithie

Telephone [phone]

28 May 2020

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

 

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