LONDON: Tandem Group plc (AIM: TND), a UK-based designer and distributor of sports, leisure and mobility equipment, reported a 14.3% rise in revenue to £11.2 million for the six months ended June 30, 2025, driven by improved inventory management, cost controls and favourable foreign exchange movements.
Tandem Group plc is a designer, developer, distributor and retailer of sports, leisure and mobility products listed on the London Stock Exchange.
Gross profit rose 21.4% to £3.4 million, lifting margins to 30.9% from 28.8% a year earlier. The Group posted an adjusted EBITDA profit of £81,000, reversing a £248,000 loss in the prior-year period. Operating loss narrowed to £80,000 from £405,000.
Net debt fell 17.9% to £3.2 million, while net assets remained steady at £23.3 million. Tandem said trading was in line with market expectations and year-to-date sales through August were up 11% year-on-year.
Chairman Peter Kimberley said the Group had delivered a “resilient performance” amid macroeconomic headwinds including rising employer costs and high unemployment. Tandem launched 165 new products in H1 and plans 48 more in H2, with strong performance from licensed brands such as Bluey, Hot Wheels, Disney and Paw Patrol.
Bikes
The UK cycling market remains highly competitive, characterized by deep discounting as competitors clear legacy inventory. Despite this challenging backdrop, the Group’s bike sales grew by 50% versus the prior year (YTD August: 38%), buoyed by favourable weather conditions and the successful launch of refreshed product lines.
The Group’s Squish brand, recently named the 2024 BikeBiz Brand of the Year, was a standout performer with sales growth of 64% (YTD August: 42%). The Group plans to strengthen its junior bike offering in the second half with the launch of Hoy Bikes, a partnership with Sir Chris Hoy, which has already secured over 100 dealers.
Electric Bikes continue to be a core growth driver. The company launched four new models in H1, expanding its sub-£2,000 range to 19 models. Sales of its own-brand electric bikes grew 60% (YTD August: 44%) and now represent two-thirds of its electric bike category. Future expansion will include introducing the Brompton brand to its Direct-to-Consumer (D2C) channel in H2.
Golf
Golf sales in H1 were 3% lower than the prior year (YTD August: +3%), primarily reflecting a shift in the timing of Freight-On-Board (FOB) orders compared to 2024. The Ben Sayers brand continues to gain market share, with new package sets and bags generating strong forward orders. The Pro Rider range saw sales growth of 4%, driven by refreshed colour options for its electric trolleys.
Home & Garden (H&MGD)
Exceptionally warm and sunny weather significantly boosted trading, with sales increasing by 16% versus the previous year (YTD August: 33%). Record spring and summer temperatures accelerated demand for cooling solutions, awnings, and parasols.
The Group successfully launched over 65 new SKUs, broadening its assortment into new categories such as outdoor heating, outdoor rugs, internal storage, and home décor, all of which have been well-received. In H2, the company has introduced nine additional products within its indoor and outdoor heating ranges, alongside new SKUs in outdoor storage. These will be available via the Jack Stonehouse website and marketplaces, positioning the Group strongly for the remainder of the year.
Online, Marketplaces, and Direct-to-Consumer (D2C)
As part of its D2C growth strategy, the Jack Stonehouse brand delivered sales growth of 68% versus H1 2024 (YTD August: 75%). The Group’s marketplace channels also performed well, achieving revenue growth of 5% (YTD August: 18%).
While website traffic was consistent with H1 2024, an improved product mix and more efficient marketing drove stronger conversion rates and higher customer spend. Transactions increased 52% year-on-year, accompanied by growth in average order value as customers purchased more items or opted for higher-value products. Customer confidence in the brand remains high, as reflected in its continued ‘Excellent’ Trustpilot rating, which is supported by a growing volume of positive reviews.
Year-End Outlook
The Group is pleased with the progress achieved in the first half, which has increased its diversification and resilience. The company’s colleagues are recognized as the cornerstone of its success.
As a result, the Board remains confident that the Group will deliver full-year performance in line with current market expectations. Its financial position is described as robust, underpinned by a strong balance sheet, substantial property assets, and solid cash reserves that ensure financial flexibility.
Looking ahead, the Group remains resolutely focused on its strategic priorities: disciplined growth, operational efficiency, and continuous innovation. While market headwinds persist, the company sees significant opportunities to strengthen its market position and deliver sustainable long-term value for all stakeholders.
Dividend
In light of the H1 performance and full-year expectations, the Board is not proposing an interim dividend. It continues to review its dividend strategy and remains committed to reinstating dividends when profits permit.