Tandem Group Plc · LSE:TND
Tandem — Investor Presentation (March 2023)
28 slides from Tandem's investor presentation, Mar 29, 2023
Slide 1: Investor Pack
m Group pic Tandem Group pic
Slide 2: Disclaimer
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer DISCLAIMER to purchase or subscribe for, any shares in the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with a
Slide 3: Agenda
AGENDA • About Us • 2022 Finance Update • 2022 Overview • 2023 Outlook • New Warehouse • New Shop & ERP System • ESG • 2023 Round-Up • Q&A
Slide 4: About Us
ABOUT US UK based designers, developers, importers, distributors and retailers of sports, leisure, home & garden and mobility equipment. Extensive product range across 4 business divisions: 1. Toys, Sports & Leisure: licensed wheeled toys, outdoor play, football training, golf 2. Bicycles: adult, ju
Slide 5: 2022 Finance Update
2022 FINANCE UPDATE
Slide 6: 2022 Financial Performance
2022 Financial Performance Strong Balance Sheet Positive Cash Balance Stock Level Control Net assets Cash and cash equivalents Inventories £26.8m £3.3m £4.8m (+£4.1m YoY) (-£3.1m YoY) (-£3.3m YoY) Investing In Our Future Remaining Profitable Reducing Pension Deficit Property, plant & equipment EBITD
Slide 7: 2022 Financial Outlook
2022 Financial Outlook Results and forecast FY21 FY22 FY23 forecast FY24 forecast Revenue £40.9m £26.7m £30.0m £33.0m Gross profit £12.1m £7.8m £8.9m £9.9m Costs (incl exceptionals) £7.1m £6.7m £7.4m £7.8m Finance costs £0.2m £0.2m £0.4m £0.4m Profit before tax £3.8m £0.9m £1.1m £1.7m
Slide 8: Dividends
2022 Dividends Dividend per share (pence) 12.00 Dividend yield 10.00 2022 3.8% 8.00 6.57 6.57 6.00 5.50 @277.5p 3.04 4.00 2021 2.89 2.00 2.00 3.12 3.43 3.43 1.6% 1.42 1.56 @515.0p - 2018 2019 2020 2021 2022 Interim Special Final
Slide 9: 2022 Overview
2022 OVERVIEW
Slide 10: Retail Landscape
2022 RETAIL LANDSCAPE Challenging Environment • Tough economic climate/cost of living crisis • Downturn in demand post-COVID • Overstocks in the market • High freight costs / custom checks • Supplier price increases between 5% and 25% • Restricted FOB opportunities • Rising interest rates
Slide 11: Toys, Sports & Leisure
2022 TOYS, SPORTS & LEISURE Headlines • Sales down vs prior year in this division but • 5 out of top 8 character licensed properties ahead of 2020 • All of the top preschool licenses • Within this, golf brands were behind both 2021 and 2020, but still more than double those in • CoComelon +205% sale
Slide 12: eMobility
2022 eMOBILITY Headlines • Sales were down from £7.0m in 2021 to £3.8m • Successfully launched our new retail showroom in 2022 under the Electric Life banner • In Q4, sales of eBikes and eScooters • Introduced 5 innovative and market leading outperformed Q4 of 2021 international brands to our D2C of
Slide 13: Bicycles
2022 BICYCLES Headlines • Sales were down from £10.2m in 2021 to £4.8m • Designed in the UK new range of 12 Falcon junior in 2022 bikes for launch in 2023 • The Bicycle Association reported 2022 as a 20 • Launched on Citrus Lime giving access to 500 leading year low for UK mechanical bike sales cycl
Slide 14: Home & Garden
2022 HOME & GARDEN Headlines Milestones • Sales -55% vs prior year / exceptional success • Appointed Buying, Marketing & Digital expertise during COVID-19 • New Jack Stonehouse website redesign / Garden • Own websites contributed 30% division turnover & Leisure website migration in Q4 • Top 5 catego
Slide 15: 2023 Outlook
2023 OUTLOOK
Slide 16: 2023 Outlook: Toys, Sports & Leisure
2023 OUTLOOK TOYS, SPORTS & LEISURE • Constraints on consumer spending leading to retail caution • Freight back down to pre-pandemic levels • Supplier costs negotiated down to pre pandemic levels or within 5% • Maximising existing account opportunities with forward thinking retailers delivering cons
Slide 17: 2022 & 2023 New & Trending Licenses
2023 OUTLOOK TOYS, SPORTS & LEISURE 2022 & 2023 New & Trending Licenses
Slide 18: 2023 Movie Releases
2023 OUTLOOK TOYS, SPORTS & LEISURE 2023 Movie Releases
Slide 19: 2023 Outlook: eMobility
2023 OUTLOOK eMOBILITY • Largest growth potential for the group • eBike sales YTD more than 3 times ahead of the comparative period last year • Positioning ourselves as leaders in the value segment for eBikes and eScooters in the UK, through: • Leveraging our strong national and independent retail r
Slide 20: 2023 Outlook: Bicycles
2023 OUTLOOK BICYCLES • Increase our market share capitalising on weakening competition • Continuing to drive new IBD accounts and secure new, exciting corporate partners • Maximising D2C opportunities by offering our bike ranges through own brand e-commerce and retail channels • Offering a more str
Slide 21: 2023 Outlook: Home & Garden
2023 HOME & GARDEN • Experts recruited for marketplaces & buying functions • Expanding new categories, capitalising on new trending products • Driving range authority in A/W 2023 smoothing out seasonality • Identifying new strategic Far East own brand sources • Growing domestic third party branded p
Slide 22: New Warehouse
2023 OUTLOOK NEW WAREHOUSE New Warehouse • Perfectly located adjacent to our existing premises • Doubled our capacity to 160,000 sq/ft • Commercial and strategic benefit • Cost saving efficiencies being realised • Solar panel installation • BREEAM compliant • Completely self-sufficient - all premise
Slide 23: New Shop & ERP System
SHOP & ERP New Shop • New specialist eMobility on-site shop opened to the public • Offers the UK’s largest range of e-mobility products • Fully trained mechanics in market leading eBike systems - Bosch, Shimano • Securing D2C partnerships with sector leading brands (Orbea, Whyte, Inokim, Quella), in
Slide 24: ESG Update
ESG UPDATE
Slide 25: ESG
ESG Supply chain and supplier engagement • Move towards either 100% recycled paper and board packaging, or FSC accredited packaging • Reduction in plastic packaging • Engagement in ethical audit programmes in toys such as SMETA, BSCI, and ICTI Ethical Toy Programme Carbon footprint reducing initiati
Slide 26: 2023 Round-Up
2023 ROUND-UP
Slide 27: Summary
SUMMARY 1. Strong Balance Sheet: Providing financial stability 2. Increase Market Share: New accounts, marketplaces and e-commerce platforms 3. Drive Operational Efficiencies: Warehouse consolidation, ERP system 4. Capitalise on Growth: Opportunity presented by the eMobility revolution 5. Maximise C
Slide 28: Q&A
Q&A