LONDON (ShareCast) - (Sharecast News) - Tandem Group has warned revenue fell about 30% in the first half of 2018 as retailers reduced orders amid weak consumer spending.


The bicycle company said it was also hit by the closure of Toys R Us, which was one of its top five customers, in the 25 weeks to 24 June. Its financial year finishes at the end of December.

At Tandem's annual shareholder meeting, chairman Mervyn Keene said: "Both national retailer and independent dealer bicycle sales during the period were generally disappointing. National retailer overstocks that were carried forward from the previous year in both toys and outdoor product categories have reduced order intake this year."

Tandem shares fell 17% to 120p at 11:23 BST.

Keene said the maker of Dawes and Claud Butler bikes saw a pick-up in sales in May but that trading was difficult in the months before then. At its annual results on 11 April Tandem said 2018 was more challenging but gave no indication that trading was so bad.

"Lengthy spells of cold weather and periods of heavy rain coupled with cautious national retailer buying and a lack of confidence in consumer spending was acutely reflected in toy industry data with a significant year to date decline in sales reported," he said.

Licensed products aimed at young customers did better, including items branded with the PJ Masks animated characters. Tandem has also agreed to produce more goods under licence from Walt Disney, including brands such as Frozen, Toy Story and Star Wars.

"In 2019 Disney's theatrical and consumer products range is second to none and we anticipate that all of these properties will make a significant contribution to future revenue," Keene said.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE