Tandem Group Reports 14.3% Revenue Growth and Return to Profitability in Interim Results

Tandem Group H1 2025: revenue up, margins up, debt down

Tandem Group has delivered a stronger first half, with revenue growth, better margins and lower net debt. The Group remains loss-making at the statutory level, but it nudged back into positive adjusted EBITDA. Trading since the period end is encouraging, and the Board says full-year performance is in line with market expectations.

Here is what stood out from the interim results for the six months ended 30 June 2025.

Headline numbers you need to know

Metric	H1 2025	H1 2024	Comment
Revenue	£11.175 million	£9.787 million	Up 14.3%
Gross profit	£3.449 million	£2.818 million	Up 21.4%
Gross margin	30.9%	28.8%	Improved on cost control and FX
Adjusted EBITDA	£81,000	£248,000 loss	Return to positive adjusted EBITDA
Operating (loss)/profit before exceptional costs	£80,000 loss	£405,000 loss	Loss narrowed
Exceptional costs	£87,000	£nil	Retirement-related employment costs
Operating (loss)/profit after exceptional costs	£167,000 loss	£405,000 loss	Improved year-on-year
(Loss) before tax	£378,000 loss	£606,000 loss	Improved year-on-year
Cash	£396,000	£805,000	Lower, see financing flows
Net debt	£3.2 million	£3.9 million	Down 17.9%
Net assets	£23.3 million	£23.3 million	Stable

Definitions: Gross margin is gross profit divided by revenue. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and exceptional costs.

Profitability is edging back, but not all the way

This was a cleaner, better half. Revenue rose 14.3% to £11.2 million and gross profit grew 21.4% to £3.4 million as margins improved to 30.9%. Management credits tighter inventory management, cost reductions and favourable foreign exchange.

Operating expenses rose to £3.5 million (from £3.2 million), mainly due to the absence of a rates credit seen in 2024, higher employer National Insurance, and more advertising to support sales. Even so, losses narrowed: operating loss before exceptionals was £80,000, and after £87,000 of exceptional costs related to a director retirement, the operating loss was £167,000. Adjusted EBITDA turned positive at £81,000 versus a £248,000 loss last year.

The bottom line is still red – a £378,000 loss before tax – but the direction of travel is favourable.

Cash, borrowings and the balance sheet

Net debt fell to £3.2 million from £3.9 million, a tidy 17.9% reduction. Cash at period end was £396,000 (H1 2024: £805,000), with operating cash inflow of £1.1 million offset by a £2.0 million outflow from financing activities as invoice finance usage reduced materially. Total borrowings decreased to £3.627 million (H1 2024: £4.736 million).

The balance sheet looks solid: net assets sit at £23.3 million, underpinned by £14.8 million of property, plant and equipment and continued pension deficit reduction (£147,000, down from £584,000).

Category performance: where growth came from

Bikes: strong growth despite a discounted market

• Group bike sales up 50% vs last year (YTD Aug: +38%).
• Squish brand up 64% vs last year (YTD Aug: +42%).
• Electric bikes: four new models launched; sub-£2,000 range now 19 models; own-brand e-bikes up 60% vs last year and two-thirds of category sales; Brompton coming to D2C in H2.
• Hoy Bikes to launch in H2, with over 100 dealers already onboarded.

That is an impressive set given ongoing deep discounting in the UK cycling market as competitors clear legacy stock. Favourable weather and refreshed ranges helped.

Home & Garden: heatwave tailwinds

• Sales up 16% vs last year (YTD Aug: +33%).
• Demand accelerated for cooling, awnings and parasols during the warmest spring and summer on record.
• 65+ new SKUs launched, expanding into outdoor heating, rugs, storage and home décor; nine further heating products coming in H2.

Weather helped, but the broader range and D2C execution are doing some heavy lifting here too.

Toys and Golf: mixed, but stabilising

• Toy Sports & Leisure: outdoor toy sales down 3% (YTD Aug: -8%). Better weather and promotions supported sell-through, with retailers now placing new orders. Two new licences added in H1 (Dora and Paw Patrol 3), with key brands like Bluey, Hot Wheels, Disney, Peppa Pig and Paw Patrol performing well.
• Golf: down 3% (YTD Aug: +3%) due to order phasing. Ben Sayers is winning share with new sets and bags; Pro Rider up 4% on refreshed trolley colours.

Direct-to-consumer and marketplaces are working

• Jack Stonehouse (D2C) sales up 68% vs H1 2024 (YTD Aug: +75%).
• Marketplaces up 5% vs H1 2024 (YTD Aug: +18%).
• Website transactions up 52% year-on-year, with higher average order values and improved conversion.

This is important. A stronger D2C and marketplace mix typically supports margins and customer insights. The Group also cites cost and lead-time benefits from its sourcing strategy and the October 2024 relocation of the Hong Kong office.

Outlook: in line with expectations, with momentum into H2

Management flags consumer confidence still weak (GfK index -18) and rising business costs, but notes lower interest rates and stable, low shipping rates. July and August showed sales growth, with year-to-date sales up 11% year-on-year. The Board expects full-year trading to be in line with market expectations.

The Board is not proposing an interim dividend and will consider resumption when profits permit.

My take: a cleaner, more resilient Tandem

What I like

• Margin expansion to 30.9% and a swing to positive adjusted EBITDA, driven by better inventory discipline and buying.
• Net debt down 17.9% to £3.2 million, aided by reduced invoice finance usage – balance sheet discipline is visible.
• Bikes and Home & Garden are delivering, with product innovation (213 launches in 2025) and stronger D2C execution underpinning growth.

What to watch

• Still loss-making at the statutory level: £378,000 pre-tax loss and £211,000 finance costs in the half. The step from EBITDA-positive to profit will require sustained margin discipline and overhead control.
• Cash balance is modest at £396,000. Management is clearly managing working capital tighter, but continued positive cash generation will matter.
• Consumer backdrop remains fragile. Weather helped H1; H2 needs the new product cadence and D2C momentum to carry the load.

Potential catalysts in H2

• Launch of Hoy Bikes and further e-bike expansion, plus Brompton entering D2C.
• Additional Home & Garden ranges (heating and storage) in peak season for those categories.
• Continuation of July-August sales momentum – currently +11% YTD – and any update on inventory turns.

Overall, this is a credible half from Tandem Group: revenue growth, better margins, lower net debt, and a return to positive adjusted EBITDA. It is not mission accomplished yet, but the operational progress and product pipeline give a fair platform for the second half.