Interim Results

Tandem Group PLC
27 October 2000


Immediate                                                       27 October 2000



                               TANDEM GROUP PLC

                             INTERIM RESULTS 2000

Tandem Group plc, the sports & leisure 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 2000.



RESULTS
                                6 months to   26 weeks to            Year ended
                               31 July 2000 1 August 1999       31 January 2000
                                  Unaudited     Unaudited               Audited
                                      £'000         £'000                 £'000
Turnover                             10,931        11,318                21,226

Profit before taxation                  432           184                    71

Earnings per share       pence         0.39          0.16                  0.01
(basic and diluted)



KEY POINTS
      Strong profits growth on increased bicycle sales
      Pot Black and Two Wheel Trading Company settling in well
      Balance sheet improved by successful £4m placing and further debt right
      off
      Discussions continue with further potential acquisitions



Commenting on these results, Chairman Graham Waldron, said:

'We are making good progress in pursuit of our strategy to repair our balance
sheet and develop Tandem into a broadly based sports and leisure group. Sales
of our market leading cycle brands continue to improve and the current range
of high performance Claud Butler cycles has received excellent reviews. Our
results for the year will benefit from our improved debt position and the
expected first contributions from Pot Black and the Two Wheel Trading
Company.'

For further information, please contact:
Mervyn Keene, Finance Director, Tandem Group plc                   01733 211399

James Fuller, Director, Haggie Financial Limited                  020 7417 8989




              Interim Report for the 6 months ended 31 July 2000



                         Chairman's interim statement



Introduction

The results for the six months to 31 July 2000 show a profit after interest
and before taxation of £432,000 (1999 - £184,000). No dividend is proposed
(1999 - nil).

Your board believes shareholder value can be increased by acquiring sports and
leisure equipment businesses where the Company has relevant experience and
business synergies can be found. This strategy is being actively pursued.

The information reported for the six months ended 31 July 2000 is in respect
of a period which ended prior to the announcement on 29 August 2000 of the
proposed acquisitions of Pot Black (U.K.) Limited and Two Wheel Trading
Company Limited and the placing and open offer to raise £4,000,000 before
expenses. These proposals were approved by shareholders on 22 September 2000
and completed on 28 September 2000.

Review of interim results

During the period the Company's sole business was the manufacture and
distribution of bicycles. The Company is one of the largest manufacturers of
bicycles in the UK, with its brand names of Falcon, Claud Butler, Townsend and
British Eagle amongst the market leaders. In recent consumer cycle magazines
the current range of high performance Claud Butler bicycles has received
excellent reviews.

As stated in the circular to shareholders dated 29 August 2000 the number of
bicycles sold in the six months was ahead of the same period last year, but a
strong demand for lower priced products resulted in a fall in average unit
prices and unit contributions.

Post 31 July 2000 events

At the extraordinary general meeting on 22 September 2000 shareholders
approved an increase in the share capital of the Company and the acquisitions
of Pot Black (U.K.) Ltd and Two Wheel Trading Company Ltd. As a result £
4,000,000 before expenses was raised by way of a share placing and open offer.
The Company's bankers agreed banking facilities to 31 January 2002 whilst
writing off debt to the value of £1,380,000 and converting £379,000 of a loan
into ordinary shares at 7.2 pence per share. Completion of the acquisitions
took place on 28 September 2000.

A pro forma statement of combined net assets of the enlarged group, following
the transactions referred to above, was included in the circular sent to
shareholders on 29 August 2000. This statement, reported on by the accountants
BDO Stoy Hayward, showed that the net liabilities of the enlarged group
amounting to £4,822,000 at 31 January 2000 would improve to net assets of £
2,303,000 following successful completion of the transactions.

Borrowings

Since the half-year end, borrowings have significantly reduced following
completion of the share issue and bank debt write off referred to earlier.
This will clearly have a favourable impact on the interest charge in the
future. Profitability in the second half of the year will be favourably
affected by the write off of bank debt.

Current trading

Bicycle business

An increase in the customer base of independent bicycle dealers should see a
growth in this sector in the second half of the year. National retailers are
currently offering an improved range of the Company's products and with an
increased order book over last year additional sales are expected. Your board
therefore expects that the cycle business results for the whole year will be
ahead of last year.

Pot Black

Pot Black has a significant share of the home snooker and pool table market
with sales predominantly through catalogue retailers. Current selections in
the autumn/winter publications should result in budgets for the year being
achieved.

There has been a positive response from existing and potential customers to
new products being introduced to increase sales in the first half of the
calendar year.

Two Wheel Trading

Two Wheel Trading manufactures and distributes a range of bicycle accessories.

An additional distributorship for a leading brand of accessories has been
agreed. Negotiations are taking place in order to secure further
distributorships of other well known brands.

The business will benefit from synergies with the Group's cycle business in
several areas including component sourcing and production.

Summary

Your board was encouraged by the positive response to the share placing and
open offer and acquisitions. It is only a month since we acquired the two
businesses, but a number of planned changes have already been implemented and
we are optimistic about the prospects for the future. We welcome the new
employees to the Group who have shown enthusiasm and commitment towards our
plans.

The transfer of the listing of the Company's ordinary shares to AIM will
reduce the costs involved with any further acquisitions. Discussions are
taking place with a number of sports and leisure equipment companies that
could join the Group, although there is no certainty that terms will be
agreed.



Graham Waldron

Chairman

27 October 2000

Registered office: Bridge Street, Brigg, North Lincolnshire, DN20 8PB



                    Consolidated profit and loss statement

                                6 months to     26 weeks to      Year ended
                               31 July 2000   1 August 1999     31 January 2000
                                  Unaudited       Unaudited       Audited
                                  £'000           £'000           £'000

Turnover
Continuing operations             10,931          11,318          21,181
Discontinued operations           -               -               45
                                  10,931          11,318          21,226
Operating profit
Continuing operations             211             542             365
Discontinued operations           3/4             -               66
Release/utilisation of prior year 3/4             -               176
provision
Exceptional items                 689             3/4             3/4
Total operating profit            900             542             607
Exceptional items                 3/4             52              59
Loss on disposal of discontinued  3/4             (37)            -
operations
Utilisation of prior year         3/4             37              -
provision
Profit on ordinary activities     900             594             666
before interest and taxation
Net interest payable              (407)           (558)           (968)
(Loss)/Profit on revaluation of   (61)            148             373
deutschmarks loan
Profit before taxation            432             184             71
Taxation                          -               -               -
Profit after taxation             432             184             71
Finance costs of non-equity       (33)            (33)            (65)
shares
Retained profit for the period    399             151             6



Earnings per share
Basic                             0.39p           0.16p           0.01p
Diluted                           0.39p           0.16p           0.01p



Notes


 1. The exceptional item in the 6 months to 31 July 2000 relates to £839,000
    being written off bank loans less bank fees of £150,000. The exceptional
    item in the 26 weeks to 1 August 1999 and the year ended 31 January 2000
    relates to the profit on disposal of fixed assets.



                          Consolidated balance sheet

                           31 July 2000  1 August 1999   31 January 2000
                              Unaudited      Unaudited   Audited
                                  £'000          £'000   £'000
Tangible fixed assets         990            1,304       1,103
Current assets
Stocks                        5,146          5,639       3,806
Assets for resale             586            -           586
Debtors                       5,031          4,997       3,015
                              10,763         10,636      7,407
Creditors
Amounts falling due within
one year
Bank overdrafts               9,215          9,713       9,351
Trade creditors               3,405          3,330       1,774
Bills of exchange             1,644          1,676       692
Other creditors               872            1,321       1,047
                                                         8
                              15,136         16,040      12,864
Net current liabilities       (4,373)        (5,404)     (5,457)
Total assets less current     (3,383)        (4,100)     (4,354)
liabilities
Creditors
Amounts falling due after     11             10          22
more than one year
Provisions for liabilities    446            599         446
and charges
Net liabilities               (3,840)        (4,709)     (4,822)
Capital and reserves
Called-up share capital       5,106          4,703       4,703
Share premium account         4,427          4,280       4,280
Capital reserve               406            406         406
Profit and loss account       (14,995)       (15,249)    (15,394)
Equity shareholders' funds    (5,056)        (5,860)     (6,005)
Non-equity minority interests 1,216          1,151       1,183
                              (3,840)        (4,709)     (4,822)




                       Consolidated cash flow statement

                               6 months to     26 weeks to    Year ended
                              31 July 2000   1 August 1999 31 January 2000
                                 Unaudited       Unaudited      Audited
                                         £           £'000       £'000
                                      '000
Net cash inflow from operating        68         1,797           2,365
activities
Returns on investments and servicing
of finance
Interest paid                         (406)       (553)           (961)
Interest element of hire purchase     (1)        (5)             (7)
rentals
Net cash outflow from returns on      (407)       (558)           (968)
investments and servicing of finance
Taxation
Taxation paid                         -          3/4             -
Capital expenditure
Purchase of tangible fixed assets     (7)        (58)            (80)
Sale of tangible fixed assets         -          4,535           4,574
Net cash (outflow)/inflow from        (7)        4,477           4,494
capital expenditure
Net cash (outflow)/inflow before      (346)       5,716           5,891
financing
Financing
Ordinary shares issued (net of        550        -               -
expenses)
Capital element of hire purchase      (7)        (38)            (76)
rentals
Net cash inflow/(outflow) from        543        (38)      (7    (76)
financing
Increase in cash                      197        5,678           5,815




                         Notes to the interim report


    1     Basis of preparation

    The figures for the year ended 31 January 2000 are an abridged version of
    the audited accounts for the year which have been filed with the Registrar
    of Companies and on which the auditors of the Company issued a report
    which, whilst unqualified, contained an explanatory note drawing
    shareholders' attention to the fact that the accounts have been prepared
    on a going concern basis which is dependent on the Company's bank
    facilities remaining in place. The remaining figures have not been audited
    or reviewed by the Group's auditors.

    2     Earnings per share

    The calculation of earnings per share is based on the net profit for the
    period of £399,000 (1999 - £151,000) and on an average of 101,235,192
    (1999 - 94,069,754) ordinary shares in issue during the period. Diluted
    earnings per share is after taking into consideration share options and
    gives an average of 101,700,947 (1999 - 96,836,685) ordinary shares.

    3     Movement in equity shareholders' funds

                            6 months to   26 weeks to        Year ended
                           31 July 2000 1 August 1999    31 January 2000

                                      £             £             £'000
                                   '000          '000

                               432           184           71
    Profit for the period

                               (33)          (33)         (65)
    Non-equity minority
    interests

                               550           -              -
    Ordinary shares issued
    (net of expenses)

                               949           151            6
                               (6,005)       (6,011)   (6,011)
    Opening equity
    shareholders' deficit

                               (5,056)       (5,860)   (6,005)
    Closing equity
    shareholders' deficit



    4     Reconciliation of operating profit to the net cash flow from
    operating activities

                                      6 months to   26 weeks to      Year ended
                                     31 July 2000 1 August 1999 31 January 2000

                                                £             £               £
                                             '000          '000            '000

                                             900           594         607
    Operating profit                                    

                                         
    Depreciation charges                 120           110             246

                                         
    Profit on sale of tangible fixed       -           (52)            (2)
    assets

                                         
    (Increase)/decrease in stocks      (1,340)       603             2,436

                                         
    (Increase)/decrease in debtors    (2,016)       (473)           1,509

                                        
    Increase in assets held for resale     -             -            (586)

                                         
    Tangible fixed assets transferred to   -             -               79
    assets for resale

                                        
    Increase/(decrease) in creditors    2,404         1,190           (1,596)


    Release of provisions                

                                         
    - continuing activities               -             -               (152)

                                        
    - discontinued activities             -             (175)           (176)

                                        
    Net cash inflow from operating       68            1,797           2,365
    activities



    5     Analysis of net debt

                  1 February           Cash Translation difference      31 July
                                       flow
                        2000                                               2000
                           £          £'000                  £'000        £'000
                        '000
                        
    Debt due within one (9,351)       197            (61)               (9,215)
    year

                        
    Finance leases       (23)       7                  -                   (16)

                        
    Net debt          (9,374)       204            (61)               (9,231)