Tandem Group PLC on Thursday reported ‘challenging’ trading in the 24 weeks to June 2022 as sales and demand across its divisions fell.

Shares in Tandem were down 16% at 251.00 pence on Thursday morning in London.

The Solihull, England-based sports product distributor said that trading in the 24 weeks was 31% behind the previous year.

It explained that both national retailer and independent bicycle sales were disappointing, with turnover 55% behind that of the same 24-week period a year prior.

During the pandemic, the company benefited from ‘unprecedented’ demand. This demand has since diminished, leaving Tandem with high stock levels against a backdrop of ‘overstocked’ customers. It intends to address this issue with promotions and special offers in the remainder of the year.

eMobility experienced similarly disappointing results, with turnover down 26% compared to the prior year. Nonetheless, Tandem said it believes the segment has the ‘largest upside potential’.

The Home & Garden division also saw a decline. Revenue in the segment was 56% lower as the previous year. The company blamed changing online shopping habits and the cost of living crisis for the decline.

More positively, revenue in the Toys, Sports & Leisure business was in line with the comparative period. Licensed brand sales were ahead of the prior year, however, own brands were behind.

The current order book is £10.0 million, well behind the £35.4 million recorded this time last time but at a similar level to the £10.8 million seen at the same point in 2020. Tandem said it expects the remainder of 2022 to be ‘challenging’.

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