Tandem Group FY25 trading update – revenue up, profit ahead of expectations
Tandem Group plc has kicked off 2026 with a confident trading update. For the year to 31 December 2025, the Group delivered revenue of £26.2 million, up 6.2% year on year, and says profit before tax and exceptional items is expected to be slightly ahead of market expectations.
In plain English, that means sales grew, margins improved, and earnings beat what analysts had pencilled in. Given the gloomy consumer backdrop, that is a tidy result.
Key figures and divisional growth at a glance
| Metric | FY25 | Comment |
|---|---|---|
| Revenue | £26.2 million | Up 6.2% year on year |
| Profit before tax (excl. exceptional items) | Not disclosed | Slightly ahead of market expectations |
| Toys, Sports and Leisure revenue | Not disclosed | Down 17.5% year on year |
| Bicycles revenue | Not disclosed | Up 37.6% year on year |
| – Electric bikes | Not disclosed | Up 30.0% |
| – Mechanical bikes | Not disclosed | Up 47.6% |
| – Children’s bikes | Not disclosed | Up 10.7% |
| Golf revenue | Not disclosed | Up 8.6% year on year |
| Pro Rider (within Golf) | Not disclosed | More than 26% growth |
| Home & Garden revenue | Not disclosed | Up 30.1% year on year |
Definitions: profit before tax (PBT) is earnings before corporation tax; exceptional items are one‑off gains or costs that are not part of normal trading.
What drove the beat – cost control, FX tailwinds and a strong H1
Management credits disciplined inventory management, tighter cost control, and favourable foreign exchange movements for supporting the year. The first half was particularly strong and set a solid platform. While the second half saw broader consumer weakness persist, the Group still executed well enough to lift profitability.
The mix shift helped too. Areas with momentum – notably bicycles, Home & Garden, and parts of Golf – outweighed softness in Toys, Sports and Leisure. That combination of cost discipline and product mix is exactly how a multi-category business can protect margins when consumer confidence is patchy.
Division deep dive – bikes power ahead, Home & Garden benefits from weather
Bicycles – robust growth across electric, mechanical and kids
Bicycle revenue finished 37.6% ahead of the prior year, comfortably outperforming wider sector trends. Electric bikes grew 30.0% on the back of new ranges, while mechanical bikes surged 47.6%. Children’s bikes added 10.7%, helped by late-year momentum and the introduction of the new HOY range developed with Sir Chris Hoy.
This breadth matters. It suggests demand is not reliant on one niche and that product development is landing with customers across price points and categories.
Home & Garden – strong weather-assisted uplift
Home & Garden delivered 30.1% growth. Early demand for heating products set the tone, and an exceptionally hot summer pulled through cooling and outdoor garden sales. Trend-led launches across patio heaters, storage cabinets, planters, clocks and indoor storage resonated through the year.
Weather tailwinds helped, but the product refresh looks to have done real work in unlocking share.
Golf – steady Ben Sayers, standout Pro Rider
The Golf division grew 8.6%. Ben Sayers held steady, while the Pro Rider portfolio was the headline act, delivering more than 26% year-on-year growth. New ranges landing in Q4 FY24 underpin that momentum and point to sensible innovation cadence.
Toys, Sports and Leisure – softer demand but strategic progress
TSL revenue fell 17.5%, reflecting softer demand in discretionary categories, retailer purchasing behaviour and the timing of ranging and promotions. That is the main blemish in the update. Even so, Tandem highlights strategic progress, with encouraging licensed wheeled products and improved traction in own-brand sports and leisure ranges.
Retail partner engagement and product mix improvements are doing some heavy lifting here, even if the headline number is down.
Outlook for FY26 – steady revenue, better margins
Trading at the start of 2026 is in line with management expectations. Tandem is targeting revenue growth in FY26 broadly in line with FY25, with further improvements in margins and profitability. In practice, management is signalling a flat-ish top line but better earnings through efficiency and mix.
Growth levers include newly secured national retail partnerships, stronger distribution relationships, ongoing investment in licensed wheeled goods, scooters, bikes and selected home and outdoor ranges, plus European expansion opportunities. The Group cites a strong balance sheet and disciplined inventory as support for the plan.
Why this matters for investors
- Beat on earnings – PBT before exceptional items is expected to be slightly ahead of market expectations. That typically supports sentiment given the consumer backdrop.
- Mix shift to growth categories – Bicycles and Home & Garden showed powerful growth, offsetting TSL weakness. Diversification is proving useful.
- Execution under pressure – Inventory discipline, cost control and FX tailwinds combined to protect margins. That operational grip is encouraging.
- Pipeline and partnerships – National retail partnerships and European opportunities hint at incremental distribution-led growth without heavy capex.
Watch-outs remain. The consumer environment is still challenging, TSL is under pressure, and weather helped Home & Garden – a benefit that may not repeat. FX tailwinds can reverse, and the RNS does not disclose absolute profit, cash or margin figures. We will need the full results to judge the scale of the profit improvement and balance sheet strength.
What to watch in March – margins, cash and inventory
The final results will be published on 23 March 2026, with a results presentation to follow at www.tandemgroupplc.co.uk/investor-presentations. Here is what I will be scanning for:
- Gross margin and operating margin – how much of the cost and FX benefit dropped through.
- PBT before exceptional items – the absolute figure and year-on-year change, not disclosed today.
- Cash, net debt and working capital – evidence of the “strong balance sheet” and inventory discipline.
- Segmental profitability – particularly whether Bicycles and Home & Garden are lifting Group margins.
- Order book and Q1 commentary – any signs of carry-through from new ranges and retail partnerships.
- Dividend policy – not disclosed in this update.
My take – a solid update with clear momentum where it counts
This is a solid update. Revenue growth of 6.2% to £26.2 million and a profit beat in a tough market speaks to good execution. The bicycle business is doing the heavy lifting across electric, mechanical and children’s, while Home & Garden shows that product innovation plus favourable weather can move the needle.
The TSL decline is the main negative, but management is leaning into licensed wheeled goods and own-brand ranges, which should be higher quality over time. With revenue in FY26 expected broadly in line but margins set to improve, the focus now shifts to delivery on mix, partnerships and European expansion.
In short, Tandem enters 2026 with its operational ducks in a row. The March numbers will tell us how far that improvement has flowed into cash and sustainable earnings.
Key dates and contacts
- FY25 results publication: 23 March 2026
- Results presentation: www.tandemgroupplc.co.uk/investor-presentations (after publication)
- Investor queries: [email protected]
