Final Results

Tandem Group PLC

23 March 2026

 

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

TANDEM GROUP PLC

(the "Company" or "Group")

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025

6% revenue growth building on prior-year momentum

Profits ahead of market expectations

Reinstatement of dividend

Net debt more than halved in the period

The Board of Tandem Group plc (AIM: TND), designers, developers, distributors and retailers of sports, leisure and mobility equipment, announces its audited results for the year ended 31 December 2025 ("FY25").

Summary

·    Group revenue in FY25 of £26.2 million, a 6.2% increase (FY24: £24.6 million) - with growth across three of the Group's four categories:

o  Bicycles revenue grew 37.5% to £10.2m (FY24: £7.4m), including 47.6% increase in mechanical bikes revenues and a 10.7% increase in children's bike sales, outperforming the sector

o  Toys, Sports & Leisure revenue decreased 17.5% to £10.2m (FY24: £12.4m) reflecting softer demand across certain discretionary categories, changes in retailer purchasing patterns and the timing of product ranging and promotional activity

o  Golf sales increased 8.6% to £2.8m (FY24: £2.6m), with growth driven by the electric trolley range and the new package sets

o  Home & Leisure revenues increased 30.1% to £3.0m (FY24: £2.3m), supported by record heatwaves that boosted demand across key sales periods

·    Gross profit of £8.1 million (FY24: £7.4 million) at a gross profit margin of 31.1% - an increase of 120 bps (FY24: 29.9%)

·    Underlying profit before tax of £692k (FY24: £510k) and, reflecting the benefit of deferred tax credits during the year, statutory net income of £850k (FY24: loss of £60k)

·    Diluted EPS of 15.4 pence per ordinary share (FY24: loss of 1.1 pence per ordinary share)

·    Reinstatement of dividend following improved performance, with payment of 3.0p per share proposed

·    Net assets at 31 December 2025 of £26.1 million (31 December 2024: £23.9 million), benefitting from increased property revaluation of £15.9m (31 December 2023: £14.1m)

·    Net debt reduced significantly at 31 December 2025 to £1.9 million (31 December 2024: £4.3 million)

·    Net inventory £4.4 million at 31 December 2025 (31 December 2024: £5.9 million)

·    Operating against a challenging macroeconomic backdrop, the Group has demonstrated durability and stability at a time when several peers have faced significant financial pressure. Progress against our strategic initiatives continues to reinforce the Board's confidence in the Group's long-term outlook.

·    Notwithstanding continued market volatility, trading momentum entering 2026 has been positive, with early sales performance tracking in line with the Board's expectations and providing a constructive start to the new financial year.

·    Steve Grant to step down as Chairman and as a director of the Company at the forthcoming AGM following six years of service. Jonathan Crookall  Non-Executive Director, to be appointed as new Chair on conclusion of the AGM.

*Exceptional costs in 2025 £87,000 (£409,000 in 2024) are in respect of employment costs relating to planned retirement of the commercial director for whom a replacement was on board in July 2024.

For further information contact:

Enquiries:

Tandem Group plc

Peter Kimberley, Chief Executive Officer

Gurvinder Kaur, Chief Financial Officer

Telephone [phone]

Nominated Adviser and Broker

Cavendish Capital Markets Limited

Ben Jeynes / Callum Davidson - Corporate Finance

Michael Johnson /Matt Lewis - Sales and Equity Capital Markets

Telephone [phone]

Chairperson's statement

Introduction 

I am pleased to present the results of the Group for the year ended 31 December 2025, a year of further growth in turnover and pre-tax profit. 

Financial highlights 

•             Group revenue increased by 6.2% to £26.2m (FY24: £24.6m)  

•             Interest bearing debt reduced significantly from £4.3m to £1.9m 

•             Underlying profit before tax of £692k (FY24: £510k) 

•             The Group's reported profit before tax is £568k (FY24: £30k) 

•             Proposed dividend of 3.0p per share 

·          Diluted earnings per share of 15.4 pence (FY24: loss per share of 1.1 pence)

•             The Group's net assets have increased to £26.1m (FY24: £23.9m) -  revaluation of the property increased by £1.8m to £15.9m

Toys, Sports & Leisure 

The Toys, Sports and Leisure division continued to play an important role within the Group with total revenue of £10.2m, although 17.5% lower than the prior year. This performance primarily reflected softer demand across certain discretionary categories, changes in retailer purchasing patterns and the timing of product ranging and promotional activity. Despite these market-driven headwinds, the division continued to make strategic progress, supported by encouraging performance in licensed wheeled products and strengthening momentum across the Group's own-brand sports and leisure ranges. Ongoing engagement with key retail partners, alongside improvements in product mix and positioning and development into new categories, continued to support brand awareness and market presence.

Online sales had significant growth during the year, with marketplace sales increasing by 34%. This performance reflects the Group's continued focus on product innovation across the range, enabling the business to better meet customer needs, stimulate demand and maintain a competitive position in the market. We are pleased that this progress has been recognised through multiple industry awards, including the Right Start Awards, The Outdoor Toy Awards and Made For Mums, across both own-brand and licensed wheeled products. 

Bicycles 

Total bicycle sales, including electric bikes, performed strongly. Revenue was £10.2 million 37.5% ahead of the prior year, outperforming broader sector trends despite a challenging market across all customer types, from independents to national retailers. Electric bikes delivered strong comparative growth of 30.0%, driven by the introduction of new ranges, and were complemented by a significant uplift in mechanical bike revenue, which increased by 47.6%. Within this category, revenue from children's bikes grew by 10.7%, reflecting robust demand during the period. This performance was further supported by the launch of the new HOY range towards the end of the year, developed in collaboration with Sir Chris Hoy.

Our B2C Electric Life brand has continued to deliver consistent growth, sales increased by 26.7% compared to the prior year. Our dedicated public showroom, led by passionate and skilled colleagues, provides servicing and repairs across bikes and scooters while delivering a first-class customer experience, as reflected in online reviews. The product range has been enhanced with the addition of market-leading brands including Amflow, Brompton and Trek to the existing retail portfolio of Whyte, Orbea and own brands; Dawes, Claud Butler and Falcon, all of which are available for free test rides. To complement the showroom, the fully transactional website now also includes non-electric and children's bikes from all brands, available for both click & collect and home delivery. 

Golf 

Golf sales increased by 8.6%  compared to the prior year with total revenue of £2.8m, reflecting continued positive momentum across the division. The Ben Sayers range delivered a steady performance over the year, while this was more than offset by exceptional growth within the Pro Rider portfolio, which grew by more than 26% compared to the prior year. A continued focus on product development and innovation, alongside the introduction of new ranges in Q4 of FY24, strengthened the overall proposition and underpinned the division's performance. 

Home & Garden  

The Home & Garden division delivered a robust performance, with revenue increasing 30.1% to £3.0m compared with the prior year. Trading in the early part of the year benefited from sustained demand for heating products, providing a solid foundation for growth. An exceptionally hot summer, with prolonged periods of sunshine across key trading periods, accelerated demand for cooling solutions and outdoor garden products. The introduction of new, trend-driven product ranges throughout the year across core categories, including outdoor patio heaters, storage cabinets, planters, clocks and indoor storage, resonated positively with customers and supported the overall increase in revenue. 

Group operating profit 

Group operating profit before exceptional costs, finance costs and taxation increased to £968k for the year ended 31 December 2025 compared to a profit of £814k for the year ended 31 December 2024. Gross margin was 31.1% against 29.9% in FY2024 and an increase in operating expenses from £6.6m in the prior period to £7.2m in the year to 31 December 2025, with rates realigning to actual charged, increases in national insurance and additional advertising to support sales.  

Group balance sheet 

The Group has continued to control its levels of inventory throughout the year, ending the period in a good stock position with new, innovative products being introduced, while stock value decreased to £4.4m compared to £5.9m in the prior period. Goods in transit were £684k compared to £535k for 2024.

Cash and cash equivalents increased to £1,543k at 31 December 2025 compared to £1,385k at 31 December 2024, with the Group moving from a net debt position as at 31 December 2024 of £4.3mto £1.9m at 31 December 2025 due to better stock management and increase in creditors. 

Further details of operational activities can be found in the Strategic Review. 

Dividend 

In light of the Company's improved financial performance and strengthened cash flow position during the year, the Board has resolved to recommend the payment of a dividend of 3.0 pence per share.

While the Board remains mindful of the ongoing global economic and geopolitical uncertainties, it believes that the Company's financial position supports a prudent return to shareholders while maintaining appropriate financial flexibility.

Subject to shareholder approval at the AGM to be held on 17 June 2026, a dividend of 3.0p per share will be paid on 6 July 2026 to shareholders on the register at the close of business on 5 June 2026 (ex-dividend date 4 June 2026).

Colleagues 

Our colleagues continue to be central to the successful delivery of the Group's strategy. During the year, we further enhanced the strength and capability of our teams through targeted recruitment, ensuring we have the right skills and experience in place to support both our strategic priorities and future growth ambitions. 

Leadership 

The senior leadership team has continued to provide clear and decisive direction, combining momentum with strategic focus. Over the course of the year, the team has strengthened organisational capability across key areas of the business, positioning the Group to execute effectively against its long-term growth strategy. 

Following six years as Chair of Tandem, I have decided that it is the right time to step down from the Board at the forthcoming AGM .   My fellow director, Jonathan Crookall, will be appointed as Chair and the board looks forward to his leadership through Tandem's next phase of growth.   

Outlook 

While the trading environment remains challenging, performance in the early part of 2026 has been encouraging. Sales are progressing in line with expectations, providing a positive start to the year.

The Toys, Sports & Leisure division has entered the new financial year with positive momentum, with both Free On Board (FOB) and domestic channels performing ahead of the prior year. This provides a solid foundation as we continue to navigate a dynamic retail environment.

Looking ahead, we will continue to prioritise innovation and disciplined range development, supported by the expansion of our licensed portfolio. Our 2026 programme will introduce major global brands including Toy Story, Dora and Marvel Avengers, alongside additional new properties that further strengthen our position in the UK licensed wheeled goods market.

We are particularly encouraged by our collaboration with Netflix on the launch of K-Pop Demon Hunters. This culturally relevant and entertainment-led property offers a strong platform for future product development and enhances our growth prospects within the licensed wheeled category. Established licences such as Disney's Stitch, the BBC's Bluey and Hot Wheels are expected to continue contributing positively, supported by sustained consumer demand.

We are also extending our wheeled expertise into adjacent categories through the introduction of a new car accessories range. This strategic expansion broadens our addressable market, enables access to new customer segments and provides additional avenues for growth across both licensed and own-brand products.

We will continue to strengthen our position as the UK's leading distributor of affordable electric bikes, introducing six new bikes to the line up bring our range of 20 e-bikes across eMTB, eHybrid, eHeritage and eFolding categories. This newly introduced range will be priced in the key sub-£1,100 category, whilst the wider category will benefit from full availability of last year's new product introductions, further enhancing our entry price point offering and supporting category growth.

In Q4 2025 we launched a range of premium lightweight kids' bikes in partnership with Olympic gold medallist Sir Chris Hoy and his brand, Hoy Bikes. This range complements our award-winning Squish lightweight kids' bikes and further cements our position in the lightweight children's bikes category. We will continue to develop the brand, looking at opportunities in Q4 2026 to extend the Hoy range in adults bikes, further gaining market share from competitors and expanding future market demand. 

Following a strong mechanical bikes performance in 2025, we will build on this momentum through the addition of six new entry price point adult and junior bikes alongside an updated BMX range. This newly designed product line-up is competitively priced within the market and includes modern specification, updated geometry and on-trend colour schemes.

In 2026 we will launch our bicycle range internationally. This will increase global brand exposure and drive incremental sales in new markets, supporting long term volume growth. To support this opportunity, we have recruited an experienced Head of International Sales.

We are delighted to continue our partnerships with premium brands Orbea, Whyte and Tern through our Electric Life retail channel. Alongside new additions including Trek, Brompton and AmFlow, these partnerships enhance our direct-to-consumer proposition, broaden our customer reach and enable us to capitalise on the growing demand for electric bicycles within our retail offering.

In our golf division, we successfully launched a fully redesigned range of Ben Sayers package sets and bags during 2025, strengthening our product offering and reinforcing our position within the value-performance segment. This updated range positions us well to capitalise on the continued growth of new-to-market golfers, alongside increasing participation from junior and female players. 

Within electric trolleys, we maintain a strong entry price point proposition through our Ben Sayers and Pro Rider brands, offering market-leading products that are strategically channel managed across retail partners and direct-to-consumer platforms. This balanced approach enables us to maximise market reach, support brand growth and drive sustainable category expansion.

We are pleased to announce for 2026 the Group has broadened its Home & Garden offering with the introduction of several new product lines designed to further strengthen the division. The expanded range spans key categories including indoor and outdoor heating, cooling solutions, outdoor storage, furniture, parasols and radiator covers, supporting the division's overall revenue growth. Alongside this range expansion, we continued to work closely with our domestic sourcing partners to maintain flexibility and speed to market, while also securing improved cost efficiencies through our Far East partners, supported by enhanced stock availability. These developments underline our ongoing focus on delivering relevant, design-led solutions for indoor and outdoor living, enabling customers to refresh and enhance their spaces with products that combine style, practicality and strong value.

As the Group prepares for its next stage of development, we have incorporated AI capabilities while further refining our marketing investment across an increasingly diverse product portfolio. During the year, focus continues to be directed towards enhancing the creative excellence, consistency and impact of content across product copy, visual images and dynamic assets, supporting both our retail partners and owned channels. The positive response received to-date from customers and accounts validates this approach and provides a strong base from which to expand and elevate our content strategy throughout 2026.

Looking ahead, the Group enters the year with a measured but optimistic outlook, whilst remaining vigilant of fast evolving developments in the Middle East which will logically impact on shipping routes and costs. With key strategic initiatives progressing across the business, we believe the foundations are firmly in place to support sustained performance. The Group remains well positioned to capitalise on future opportunities, leveraging its core strengths to deliver long-term, sustainable growth. The Board continues to have confidence in the Group's strategic direction, underpinned by a clear focus on innovation, customer engagement and operational discipline. 

S J Grant 

Chair 

20 March 2026 

Strategic report

Operating and Financial Review

Revenue

Group revenue for the year ended 31 December 2025 was £26,153,000 compared to £24,619,000 in the prior year. The Group's revenue is split into the four main business segments as follows.

	2025 (£000)	2024 (£000)	2023 as restated (£000)
Toys, Sports and Leisure	10,203	12,362	10,369
Bicycles, including electric	10,154	7,380	6,630
Golf	2,766	2,548	2,261
Home and Garden	3,030	2,329	2,982
	26,153	24,619	22,242

Gross profit

Gross profit of £7,366,000 in 2024 increased by 10.4% to £8,130,000 in 2025.

The gross profit margin percentage increased from 29.9% to 31.1%. The Group has again continued to work hard on negotiating cost reductions, together with less clearance activity and foreign exchange hedging in place.

Operating expenses

Group operating expenses increased by 9.3% to £7,162,000 in the year (year ended 31 December 2024 - £6,552,000), with rates realigning to actual charged, increases in national insurance and additional advertising to support sales.  

Operating result

Operating profit before exceptional costs was £968,000 for the year ended 31 December 2025 compared to £814,000 in the prior year.

Non-underlying items

Non-underlying items comprised:

•    Exceptional costs of £87,000 (year ended 31 December 2024 - £409,000) in respect of employment costs relating to the planned retirement of the Group's commercial director, for whom a replacement was onboarded in July 2024.

•    Pension finance costs under IAS19 of £37,000 (year ended 31 December 2024 - £71,000); and

•    A deferred tax charge of £102,000 (year ended 31 December 2024 - £83,000) in respect of pension schemes.

Finance costs

Total net finance costs decreased to £313,000 in the year ended 31 December 2025 compared to £375,000 in the year ended 31 December 2024.

There was a decrease in total interest payable on bank loans, overdrafts, hire purchase and invoice finance facilities from £374,000 in the prior year to £326,000 in 2025 with reduced level of borrowing due to strong controls over working capital. This was offset by the income received from the Group's interest rate hedge of £50,000 (year ended 31 December 2024- £70,000).

Finance costs in respect of the pension schemes provided in line with IAS19 were £37,000 compared to £71,000 for the year ended 31 December 2024.

Taxation

The tax credit for the year ended 31 December 2025 was £282,000 compared to an expense of  £90,000 in the prior year.

The corporation tax charge in the year ended 31 December 2025 of £3,000 is in relation to the Hong Kong operation (year ended 31 December 2024- £2,000, which comprised a corporation charge for the Hong Kong operation ).

There was a deferred tax credit of £285,000 compared to a charge of £88,000 in the prior year.

Net profit

Net profit for the year ended 31 December 2025, after non-underlying items and finance costs and reflecting the benefit of FY25 taxation credits was £850,000 compared to a loss of £60,000 for the year ended 31 December 2024.

Adjusted EBITDA

Adjusted EBITDA (Earnings Before Interest, Taxation, Depreciation, Amortisation and Exceptional Costs) was £1,306,000 for the year ended 31 December 2025, compared to £1,132,000 in the prior year.

Capital expenditure

Total expenditure on property, plant and equipment incurred during the year was £7,000 (year ended 31 December 2024 - £86,000).

Cash flows, working capital and net cash

Net cash inflow from operating activities before movements in working capital for the year ended 31 December 2025 was £789,000 compared to £612,000 in the year ended 31 December 2024.

Cash inflow from operations was £2,655,000 compared to a outflow of £347,000 last year, reflecting the strong management of working capital.

Net cash outflows from investing activities were nil in 2025, against £86,000 in the previous year.

There was a net cash outflow from financing activities of £2,205,000 in 2025, which compared to an inflow of £1,692,000 in 2024, as the invoice finance facility was reduced.

As a result of these movements the closing cash position at 31 December 2025 was £1,543,000 compared to £1,385,000 at 31 December 2024.

Net debt, comprising cash and cash equivalents less invoice financing liabilities and borrowings, was £1,901,000 at 31 December 2025, compared to £4,322,000 at the end of the previous year.

Dividends

In light of the Company's improved financial performance and strengthened cash flow position during the year, the Board has resolved to recommend the payment of a dividend of 3.0 pence per share.

While the Board remains mindful of the ongoing global economic and geopolitical uncertainties, it believes that the Company's financial position supports a prudent return to shareholders while maintaining appropriate financial flexibility.

Profit per share

Basic profit per share was 15.5 pence per share for the year ended 31 December 2025 compared to a basic loss per share of 1.1 pence per share for the year ended 31 December 2024.

Product range overview 

Turnover has been split into four segments: Toys, Sports & Leisure, Bicycles, Golf and Home & Garden.  

Toy, Sports & Leisure 

While being disappointed in the 2025 revenue reduction of 17.5%, the Group has made an encouraging start to the new financial year within its Toys, Sports & Leisure division, with trading across both FOB and domestic channels ahead of the prior year comparative period. This performance provides a solid base from which to progress, particularly given the continued volatility within the UK retail environment and ongoing pressure on consumer spending. The Board believes the division's diversified customer base and balanced channel mix position it well to respond to these conditions.

Alongside its core wheeled goods offering, the division is progressing a strategic expansion into adjacent categories through the introduction of a new car accessories range. This development leverages existing sourcing capabilities, brand relationships and distribution channels, while broadening the Group's addressable market and reducing reliance on any single product segment. The Board considers this initiative to be a logical extension of the division's expertise and one that should support incremental growth opportunities over the medium term. 

Product development remains centred on innovation, disciplined range management and the continued expansion of the licensed portfolio. The 2026 programme includes several globally recognised brands, notably Toy Story, Dora and Marvel Avengers, together with additional properties currently under evaluation. These introductions are expected to reinforce the Group's position within the UK licensed wheeled goods market and enhance the overall strength of its product pipeline. 

The Group is also working in collaboration with Netflix on the planned launch of K-Pop Demon Hunters. As a contemporary entertainment property with international appeal, it is expected to provide a platform for future product development within the licensed wheeled category. Established licences, including Disney's Stitch, the BBC's Bluey and Hot Wheels, continue to trade in line with expectations and remain important contributors to divisional performance, supported by sustained consumer demand and strong brand equity. 

Overall, the Board believes the division enters the year with a strengthened portfolio of products, licences and growth initiatives, providing a sound foundation for continued progress despite the uncertain trading backdrop. 

Bicycles 

In 2026, total bicycle sales, including electric bikes, outperformed the broader market, delivering 37.5% year-on-year growth despite a challenging trading environment across all customer channels. 

Growth was recorded across all categories, with electric bikes up 30.0%, complemented by a particularly strong performance in mechanical bikes, which grew 47.6%. Within the mechanical segment, children's bikes rose 10.7%, driven by continual consumer demand.

Looking ahead, we will continue to strengthen our market leading position in affordable electric bikes through targeted range expansion and strategic price-point positioning. six new electric models will be introduced, increasing our portfolio to 20 e-bikes across eMTB, eHybrid, eHeritage, and eFolding categories. These new additions will focus on the key sub-£1,100 segment, while full availability of our strong-performing new additions from 2025 will support ongoing category growth.

The successful introduction of a new lightweight Hoy Bikes range, developed in partnership with Olympic gold medallist Sir Chris Hoy, complements the award-winning Squish range and further reinforces the division's leadership in the lightweight kids' category. In 2026, we will continue to capture additional market share by expanding the Squish dealer base and explore broadening the reach of the Hoy brand into adult bike categories. 

Following excellent mechanical bike performance in 2025, the division will build further momentum through six new entry-level adult and junior models, alongside a refreshed BMX range. The updated line-up features modern specifications, refined geometry, and contemporary colourways, maintaining competitive positioning while remaining accessible to entry-level customers. Similarly to electric bikes, we will also benefit from full year availability of our 2025 hybrid and MTB range launches.

International expansion is a key strategic priority. In 2026, our bicycle ranges will be launched in overseas markets, increasing global brand exposure and generating incremental revenue to support long-term volume growth. This initiative is backed by the appointment of an experienced Head of International Sales to lead market development and execution. 

Strategic brand partnerships continue to develop, underpinning our direct-to-consumer website, Electric Life alongside own brand range of bikes. Established collaborations with premium brands including Orbea, Whyte, and Tern, alongside newer additions such as Trek, Brompton, and Amflow, broaden the product offer and enhance customer choice. 

Through focused product development, competitive pricing, and strong retailer and D2C relationships, the cycling segment is well positioned to deliver sustainable growth and strengthen market leadership in the year ahead. 

Golf 

Our Golf segment grew by 8.6% year-on-year, driven by exceptional performance across the Pro Rider range, which rose over 26%, while the Ben Sayers range maintained a steady contribution across the year.  

During 2025, we launched a fully redesigned range of Ben Sayers package sets and bags, capturing the brands heritage within the value-performance segment. This refreshed offering has been well received by both our off-course and on-course retailers, positioning the business to benefit from the continued growth of new-to-market golfers, alongside increasing participation from junior and female players in 2026. 

In 2026 we will continue to maintain a strong entry price point electric trolley proposition through the Ben Sayers and Pro Rider brands, offering market-leading products that are strategically and successfully managed across both retail partners and direct-to-consumer channels. 

Home & Garden 

Our Home & Garden segment, focused on direct-to-consumer retailing of outdoor living and homeware products, continued to operate in a competitive and evolving market environment. In 2025, the division strengthened its performance through a broader product mix, and exceptional seasonal conditions supporting overall revenue momentum, which grew by 30.1%. The expanded range now across key indoor and outdoor categories including heating and cooling solutions, outdoor storage, furniture, parasols and complementary home accessories, helping to reduce reliance on seasonal demand patterns. 

For 2026 we remained focused on enhancing our sourcing strategy to support this growth. Close collaboration with domestic sourcing partners enabled greater flexibility and faster response times, while deeper relationships with Far East suppliers delivered improved cost efficiencies and stronger stock availability. These measures have improved resilience across the supply chain and supported consistent product availability throughout the year. 

Innovation and product development continue to underpin the segment's strategy. By introducing relevant, design-led ranges that reflect current lifestyle trends, we aim to meet evolving customer expectations across both indoor and outdoor living. Our Home & Garden offering is designed to help customers refresh and enhance their spaces with products that combine style, practicality and compelling value, positioning the division well for continued development in the year ahead. 

Key performance indicators

A wide variety of daily key performance indicators are produced for all of the Group's businesses to enable monitoring of performance against budget and the previous year. The key performance indicators that the Directors consider salient to the Group's performance are shown below:

	31 December 2025	31 December 2024
Gross profit margin	31.1%	29.9%
The ratio of gross profit to sales expressed as a percentage
Turnover per employee	£358,000	£337,000
The total of sales invoiced to customers, excluding value added tax, divided by the average number of employees during the period
Net operating expenses before exceptional costs % of sales	27.4%	26.6%
The ratio of net operating expenses before exceptional costs to the total of sales invoiced to customers, excluding value added tax, expressed as a percentage
Interest cover	3.5	2.7
The ratio of operating profit before exceptional costs to net interest payable on bank loans, overdrafts and invoice finance facilities
Shareholders' return	3.6%	(0.3%)
The ratio of profit/(loss) to shareholders' funds at the start of the year expressed as a percentage
Basic earnings/(loss) per share - pence	15.5	(1.1)
The net profit/(loss) divided by the weighted average number of ordinary shares in issue during the year

Content Marketing

Supporting our wider growth strategy, we continue to invest in marketing content generation across the Group's product portfolio. This approach allows us to deliver clear, consistent and compelling product messaging to a broad range of stakeholders, including key accounts, partners and our own retail platforms. We are leveraging AI-enabled tools to enhance the creation, optimisation and personalisation of content, helping us work more efficiently while maintaining quality and relevance. Our focus remains on producing engaging and authoritative assets across multiple channels and formats, including visual and dynamic motion content, developed for use both online and across social media platforms, clearly showcasing product features, benefits and exclusive points of difference. 

Feedback from our retail accounts has been positive and demonstrates the progress made in improving both the quality and impact of our content. The utilisation of this content is strengthening brand awareness, driving higher levels of customer engagement and improved conversion across our digital and retail sales channels whilst supporting sustainable growth across the business in the year ahead. 

Consumer Channels

The Group delivered a strong performance across its consumer channels, achieving a 25% increase compared to the previous year. Growth was driven by continued momentum across our own websites, including Jack Stonehouse, Electric Life, Tandem Group Cycles and Ben Sayers, which delivered a 27% uplift compared with the prior year. Sales through third-party consumer marketplaces increased by 23%, compared to the prior year supported by platforms including Amazon Seller and eBay, as well as the online channels of major retail partners B&Q, Tesco, The Range and Wayfair. 

Looking ahead to 2026, we continue to explore new strategic partnerships and platform opportunities to accelerate growth and broaden our market reach. This year we are undertaking expansion into Europe through dedicated resource, and a newly appointed Head of European Sales, to accelerate growth across the region.      

Sourcing & Logistics

Our Hong Kong office remains a vital sourcing hub for the Group, supporting efficiency, cost savings, and product quality. Following the relocation to Kowloon East, a dynamic and growing business district in late 2024, we have achieved cost efficiencies, which we expect to continue in the year ahead. In addition to facilitating the Group's product sourcing, the team ensures rigorous technical and quality control. It also supports strong supplier relationships, negotiates competitive pricing, and streamlines logistics to enhance cost efficiency and long-term supply chain stability. 

Pension schemes

The Group operates two defined benefit pension schemes with both schemes closed to new members. There are no active members in either scheme.

The collective deficit of the schemes at 31 December 2025 decreased to £16,000 compared to £358,000 at 31 December 2024. The reduction in the deficit is largely due to the contributions to the Tandem scheme during the year of £448,000.

The pension schemes continued to utilise the Group's cash resources with payments in respect of the schemes totalling £605,000 (year ended 31 December 2024 - £526,000). The total comprised deficit contributions of £448,000 and £nil in respect of the Tandem and Casket schemes respectively (year ended 31 December 2024 - £397,000 and £nil) and government levies and administration costs of £157,000 (year ended 31 December 2024 - £129,000).

The latest triennial valuation date for the Tandem scheme was 1 October 2025 and the Casket scheme 5 April 2025. The valuations are in the process of being completed and details will be provided in the 2027 Annual Report.

Colleagues

We currently employ 73 colleagues in the Group who remain our most important asset. The Group continues to offer a breadth of cost saving solutions for colleagues and their families, along with access to a discounted range of our clean energy transportation products.

Annual General Meeting

The Group's 2025 Annual General Meeting will be held on 17 June 2026 at the Group's Castle Bromwich offices at 35 Tameside Drive, Castle Vale, Birmingham B35 7AG.

Strategy

We aim to accelerate growth across all operating divisions by responding proactively to changing market dynamics. This includes expanding our product offering, growing our customer base, and enhancing our direct-to-consumer proposition. Building upon last year we will continue by improving website performance, enhancing marketing content, ongoing product development, and sourcing efficiencies. Across our product portfolio we will continue to secure attractive licensing agreements and build high-quality own-brand ranges to strengthen our market positioning.

The Chairperson's statement provides an overview of the current outlook for the Group in the forthcoming year.

Principal risks and uncertainties

The management of the business and the nature of the Group's strategy are subject to a number of risks and uncertainties. The principal risks facing the business are as follows:

Economic conditions

The current economic environment in the UK presents significant challenges, which could adversely impact the Group's revenue and financial performance.

Suppliers

To maintain competitive pricing, the Group has outsourced production primarily to Asia. This approach introduces risks, including operational issues at factories, potential changes in import duties, and the possibility of increased costs due to freight and shipping delays. The Group mitigates these risks by maintaining a local office in Hong Kong, where a dedicated team works closely with suppliers. Additionally, the Group has contingency plans in place and diversifies its sourcing to Europe to reduce dependency on any single region.

Fluctuations in currency exchange rates

A substantial portion of the Group's purchases are denominated in US dollars, exposing the Group to fluctuations in foreign exchange rates. The Group manages this exposure by utilising forward foreign exchange contracts and has adopted formal hedge accounting practices. However, if these hedging activities are insufficient, the Group's financial performance and position could be negatively affected.

Interest rates

If interest rates increase, this could have an impact on the Group's finance costs. However, the Group has entered into an interest rate cap mechanism for £3 million on a depreciating basis of borrowings capped at 2%.

Licences

Several of the Group's brands are licensed from global licensors, typically under agreements lasting two to three years. If these licences are not renewed, the Group would secure additional new and on-trend licences to prevent any reduction in revenue.

Competition

The Group operates in highly competitive markets, leading to constant pressure on margins and the risk of not meeting customer expectations. To address these risks, the Group has implemented comprehensive strategies across supply chain management and product development.

Volatility in financial markets may require further cash contributions to our pension funds

The Group has commitments under two defined benefit pension schemes. The Group is obliged to make contributions to the schemes based on actuarial valuations, which in turn are based on long-term assumptions to calculate scheme liabilities. Volatility of the financial markets can also affect the value of the assets in the schemes. This may lead to a requirement to increase the cash contributed by the Group to the schemes. If the Group is required to make significant additional contributions, the financial position of the Group may be materially affected with a significant reduction in operating cash flows. In turn, this may adversely impact future developments of the business.

Financial risks

The main risks arising from the Group's financial instruments are interest rates, liquidity, credit and foreign currency. The Board reviews and agrees policies for managing each of these risks. 

P Kimberley

Chief Executive Officer
20 March 2026

Consolidated income statement

		31 December 2025			31 December 2024
	Note	Before non-underlying items £'000	Non-underlying items £'000	After non-underlying items £'000	Before non-underlying items £'000	Non-underlying items £'000	After non-underlying items £'000
Revenue	3	26,153	-	26,153	24,619	-	24,619
Cost of sales		(18,023)	-	(18,023)	(17,253)	-	(17,253)
Gross profit		8,130	-	8,130	7,366	-	7,366
Operating expenses		(7,162)	-	(7,162)	(6,552)	-	(6,552)
Operating profit before exceptional costs		968	-	968	814	-	814
Exceptional costs		-	(87)	(87)	-	(409)	(409)
Operating profit		968	(87)	881	814	(409)	405
Finance costs		(276)	(37)	(313)	(304)	(71)	(375)
Profit before taxation		692	(124)	568	510	(480)	30
Tax expense		384	(102)	282	(7)	(83)	(90)
Net profit/(loss) for the year		1,076	(226)	850	503	(563)	(60)
Profit/(loss) per share	4			Pence			Pence
Basic				15.5			(1.1)
Diluted				15.4			(1.1)

Consolidated statement of comprehensive income

	31 December 2025 £'000	31 December 2024 £'000
Net profit/(loss) for the year	850	(60)
Other comprehensive income:
Items that will be reclassified subsequently to profit and loss:
Foreign exchange differences on translation of foreign operations	(56)	11
Cashflow hedging contracts	(50)	100
Items that will not be reclassified subsequently to profit or loss:
Revaluation of property, plant and equipment	1,970	-
Deferred taxation on the revaluation of property, plant and equipment	(492)	-
Actuarial (loss)/gain on pension schemes	(71)	44
Movement in pension schemes' deferred tax provision	17	(11)
Other comprehensive profit/) for the year, net of tax	1,318	144
Total comprehensive profit for the year attributable to equity shareholders	2,168	84

Consolidated balance sheet

	Note	31 December 2025 £'000	31 December 2024 £'000
Non current assets
Intangible fixed assets		5,461	5,494
Property, plant and equipment		16,607	14,939
Deferred taxation		374	564
		22,442	20,997
Current assets
Inventories		4,437	5,930
Trade and other receivables		6,494	6,376
Derivative financial asset held at fair value		76	201
Current tax assets		8	37
Cash and cash equivalents		1,543	1,385
		12,558	13,929
Total assets		35,000	34,926
Current liabilities
Trade and other payables		(5,448)	(4,945)
Borrowings		(254)	(2,262)
Derivative financial liability held at fair value		(1)	-
Current tax liabilities		-	(1)
		(5,703)	(7,208)
Non current liabilities
Borrowings		(3,190)	(3,445)
Pension schemes' deficit		(16)	(358)
		(3,206)	(3,803)
Total liabilities		(8,909)	(11,011)
Net assets		26,091	23,915
Equity
Share capital		1,503	1,503
Shares held in treasury		(124)	(135)
Share premium		776	729
Other reserves		8,976	7,187
Profit and loss account		14,960	14,631
Total equity		26,091	23,915

Consolidated statement of changes in equity

	Share capital £'000	Shares held in treasury £'000	Share premium £'000	Cash flow hedge reserve £'000	Merger reserve £'000	Capital redemption reserve £'000	Revaluation reserve £'000	Translation reserve £'000	Profit and loss account £'000	Total £'000
At 1 January 2024	1,503	(135)	729	100	1,036	1,427	3,860	653	14,638	23,811
Net loss for the year	-	-	-	-	-	-	-	-	(60)	(60)
Re-translation of overseas subsidiaries	-	-	-	-	-	-	-	11	-	11
Forward contracts	-	-	-	100	-	-	-	-	-	100
Net actuarial gain on
pension schemes	-	-	-	-	-	-	-	-	33	33
Total comprehensive income for the year attributable to equity shareholders	-	-	-	100	-	-	-	11	(27)	84
Share based payments	-	-	-	-	-	-	-	-	20	20
Total transactions with owners	-	-	-	-	-	-	-	-	20	20
At 1 January 2025	1,503	(135)	729	200	1,036	1,427	3,860	664	14,631	23,915
Net profit for the year	-	-	-	-	-	-	-	-	850	850
Re-translation of overseas subsidiaries	-	-	-	-	-	-	-	(56)	-	(56)
Revaluation of property	-	-	-	-	-	-	1,970	-	-	1,970
Deferred taxation on revaluation of property	-	-	-	-	-	-	-	-	(492)	(492)
Forward contracts	-	-	-	(50)	-	-	-	-	-	(50)
Net actuarial loss on pension schemes	-	-	-	-	-	-	-	-	(54)	(54)
Total comprehensive income for the year attributable to equity shareholders	-	-	-	(50)	-	-	1,970	(56)	304	2,168
Reclassified to cost of inventory	-	-	-	(75)	-	-	-	-	-	(75)
Exercise of share options	-	11	47	-	-	-	-	-	-	58
Share based payments	-	-	-	-	-	-	-	-	25	25
Total transactions with owners	-	11	47	(75)	-	-	-	-	25	8
At 31 December 2025	1,503	(124)	776	75	1,036	1,427	5,830	608	14,960	26,091

Consolidated cash flow statement

	31 December 2025 £'000	31 December 2024 £'000
Cash flows from operating activities
Net profit/(loss) for the year	850	(60)
Adjustments:
Depreciation of property, plant and equipment	305	285
Amortisation of intangible fixed assets	33	33
(Profit)/loss on sale of property, plant and equipment	(7)	267
Contribution to defined benefit pension plans	(448)	(397)
Finance costs	313	375
Tax expense	(282)	90
Share based payments	25	19
Net cash flow from operating activities before movements in working capital	789	612
Change in inventories	1,493	(769)
Change in trade and other receivables	(118)	(1,200)
Change in trade and other payables	501	1,010
Cash used in from operations	2,665	(347)
Interest paid	(276)	(304)
Tax received/(paid)	30	(28)
Net cash flows from operating activities	2,419	(679)
Cash flows from investing activities
Purchases of property, plant and equipment	(7)	(86)
Sale of property, plant and equipment	7	-
Net cash flows from investing activities	-	(86)
Cash flows from financing activities
Loan repayments	(255)	(38)
Movement in invoice financing	(2,008)	1,730
Exercise of share options	58	-
Net cash flows from financing activities	(2,205)	1,692
Net change in cash and cash equivalents	214	927
Cash and cash equivalents at beginning of year	1,385	447
Effect of foreign exchange rate changes	(56)	11
Cash and cash equivalents at end of year	1,543	1,385

Notes to the results

1.   General information

The financial information set out in this announcement does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated balance sheet at 31 December 2025, the Consolidated statement of changes in equity, the Consolidated cash flow statement and the associated notes for the period then ended have been extracted from the Group's financial statements upon which the auditor's opinion is unqualified and does not include any statement under section 498 of the Companies Act 2006.  The statutory accounts for the year ended 31 December 2025 will be delivered to the Registrar of Companies following the Group's Annual General Meeting.

2.   Basis of preparation

The consolidated financial statements of the Group have been prepared under the historical cost convention and in accordance with UK adopted international accounting standards. The principal accounting policies adopted by the Group, which remain unchanged, are set out in the statutory financial statements for the year ended 31 December 2025.

Non-underlying items

Non-underlying items are material items which arise from unusual non-recurring or non-trading events. They are disclosed in aggregate in the Consolidated income statement where in the opinion of the Directors such disclosure is necessary in order to fairly present the results for the period. Non-underlying items comprise exceptional costs, the finance cost related to the Group's pension schemes calculated in accordance with IAS19 and the impact of the movement of the ineffective proportion of the hedge.

Key areas of estimation uncertainty

Impairment of goodwill

The annual impairment assessment in respect of goodwill requires estimates of the value in use of cash generating units to which goodwill has been allocated to be calculated.  As a result, estimates of future cash flows are required, together with an appropriate discount factor for the purpose of determining the present value of those cash flows. 

Financial instruments valuation

Derivatives are used to minimise the impact of foreign exchange and interest rate fluctuations on the Group. An asset or liability is recognised representing the fair value of the instruments in place at the year end. The fair value is calculated using certain estimates and valuation models by reference to significant inputs including; implied volatilities in foreign currency and interest rates and historical movements in foreign currency exchange and interest rates.

Pension scheme valuation

The liabilities in respect of defined benefit pension schemes are calculated by qualified actuaries and reviewed by the Group, but are necessarily based on subjective assumptions.  The principal uncertainties relate to the estimation of the discount rate, life expectancies of scheme members, future investment yields and general market conditions for factors such as inflation and interest rates. Profits and losses in relation to changes in actuarial assumptions are taken directly to reserves and therefore do not impact on the profitability of the business, but the changes do impact on net assets.

Inventory provisioning

The Group reviews the net realisable value of and demand for its inventory on an ongoing basis to ensure recorded inventory is stated at the lower of cost or net realisable value.  Factors that could impact estimated demand and selling prices are the timing and success of future technological innovations, competitor actions, suppliers prices and economic trends.  If total inventory losses differ, the Group's consolidated net income in the year would have improved or declined, depending upon whether the actual results were better or worse than expected.

Bad debt provision

At each reporting period, the Directors review outstanding debts and determine appropriate provision levels.  The recovery of certain debts is dependent on the individual circumstances of customers.  At the year end there are a number of debts which remain outstanding past their due date, which the Directors believe to be recoverable.

Intangible asset valuation

In attributing value to intangible assets arising on acquisition, management has made certain assumptions in terms of cash flows attributable to intellectual property and customer relationships. The key assumptions relate to the trading performance of the acquired business, royalty rates applied in the royalty relief calculation and discount rates applied to calculate the present value of future cash flows. The Directors consider the resulting valuation to be a reasonable approximation as to the value of the intangibles acquired.

Freehold property revaluation

In ascertaining an accurate estimate of the value of freehold property, the Directors utilise the latest professional valuation conducted along with available information on local property value movements since the valuation date.

Key judgements

Going Concern

The financial statements are prepared on the going concern basis.

The Group has cash reserves and finance facilities available and the Board continually monitor a rolling cashflow forecast for the business as a whole. Given the Group's low fixed cost base and the facilities available to it, the Board therefore considers the Group will continue to be able to meet its liabilities as they fall due.

On that basis, the Directors are confident that they will be able to manage the business in such a way that it will continue to operate and trade for at least 12 months from the date of the signing of the financial statements and have therefore prepared these financial statements on a going concern basis.

Deferred tax assets

In determining the deferred tax asset to be recognised the Directors carefully review the recoverability of these assets on a prudent basis and reach a judgement based on the best available information.  Estimates and judgements used in the financial statements are based on historical experience and other assumptions that the Directors and management consider reasonable and are consistent with the Group's latest budgeted forecasts where applicable.  Judgements are based on the information available at each balance sheet date.  Although these estimates are based on the best information available to the Directors, actual results may ultimately differ from those estimates.                       

Cash flow hedging

In determining the proportion of forward foreign exchange contracts that are effective hedges against currency fluctuations, the Directors produce detailed forward forecasts to carefully determine the requirements of a particular foreign currency to match future planned supplier payments.

In determining the proportion of the interest rate hedge contracts that are effective against base interest rate fluctuations, the Directors measure the level of borrowing against the remaining value of the contracts.

3. Segmental analysis

Due to the integration of a number of functions across the Group it is not possible to accurately report operating segments in full, turnover has been analysed into four key segments being Toys, Sports & Leisure, Bicycles, including Electric, Golf and Home & Garden. 

		2025	2024
		(£000)	(£000)
Toys, Sports & Leisure		10,203	12,362
Bicycles, including electric		10,154	7,380
Golf		2,766	2,548
Home & Garden		3,030	2,329
		26,153	24,619
Turnover by geographical destination is detailed below.
		2025	2024
		(£000)	(£000)
UK	25,161		22,547
Europe	977		2,050
Rest of World	15		22
		26,153	24,619

4. Profit per share

The calculation of loss per share is based on the net loss and ordinary shares in issue during the year as follows:

	31 December 2025		31 December 2024
	£'000		£'000
Net profit/ (loss) for the year	850		(60)
Weighted average shares in issue (excluding shares held in treasury) used for basic earnings per share	5,488,754		5,471,959
Weighted average dilutive shares under option	33,065		15,440
Average number of shares used for diluted earnings per share	5,521,819		5,487,399
	Pence		Pence
Basic Profit/ (Loss) per share	15.5		(1.1)
Basic Profit/ (Loss) per share	15.4		(1.1)

The impact on the loss per share of the share options for the year ended 31 December 2024 is anti-dilutive.

5. Dividend

In light of the Company's improved financial performance and strengthened cash flow position during the year, the Board has resolved to recommend the payment of a dividend of 3.0 pence per share.

While the Board remains mindful of the ongoing global economic and geopolitical uncertainties, it believes that the Company's financial position supports a prudent return to shareholders while maintaining appropriate financial flexibility.

6. Annual report and accounts and final results presentation

The annual report and accounts will be posted to shareholders shortly and, along with the final results presentation, will be available on the Company's website, www.tandemgroup.co.uk.

7. Annual General Meeting

The Annual General Meeting will be held at 11:00 on 17 June 2026 at 35 Tameside Drive, Castle Bromwich, Birmingham, B35 7AG. 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

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.

 

END