Pro Rider Mobility’s parent group sees mixed trading as it warns investors of fall in group revenue
Tandem Group plc, the parent group of mobility brand Pro Rider Mobility, has forewarned investors that despite a growth in its bike sales since the COVID-19 outbreak, its overall national retailer order book is significantly behind the previous year.
Listed on the London Stock Exchange’s Alternative Investment Market (AIM), the Tandem Group designs and distributes a range of brands in the sports, leisure and mobility arena, as well as retailing through its own direct-to-consumer channels via its Expressco Direct arm.
On the 28th May, the Group reported that bicycle sales were up 77 per cent ahead of the previous year as more consumers turned to cycling during the lockdown and noted that its forward order book is “significantly higher.”
The spike in demand for its bicycle ranges, however, has strained its supply chain.
Tandem also revealed that whilst online sales have been “strong”, its national retailer order book is down over 20 per cent against last year with national retailers slowing the pace of new following the lockdown.
In addition, the Group highlighted that despite seeing few cancellations in its national retailer business, it has experienced a number of delays with orders which has impacted revenue.
According to the trading report, Tandem expects group revenue to fall behind the prior year during the summer, largely in part to a struggle to source bicycles, as well as a lack of free on board orders from retailers.
“At this stage, it remains difficult to ascertain the overall impact on the full year but we will make a further update at the AGM and continue to update the market as and when we have greater visibility,” concluded Tandem.
Following the trading report, the company saw its share price decline by 7 per cent to 240p at 8am on the 29th May.
