**Summary of Tandem Group PLC Interim Results for H1 2025**
Tandem Group PLC, a UK-based designer, developer, distributor, and retailer of sports, leisure, and mobility equipment, announced its unaudited interim results for the six months ended 30 June 2025. The Group reported increased revenues and profitability, alongside a reduction in net debt, despite ongoing macroeconomic challenges.
**Key Financial Highlights**
**Revenue Growth** Group revenue increased by 14.3% to £11.2 million compared to £9.8 million in H1 2024.
**Gross Profit** Gross profit rose by 21.4% to £3.4 million, with a gross margin improvement to 30.9% from 28.8% in H1 2024, driven by strong inventory management, cost reductions, and favorable foreign exchange movements.
**Adjusted EBITDA** Adjusted EBITDA turned positive to £81k, compared to a loss of £248k in H1 2024.
**Loss Before Interest and Taxation** Reduced to £167k from £405k in H1 2024.
**Net Debt Reduction** Net debt decreased by 17.9% to £3.2 million from £3.9 million in H1 2024.
**Net Assets** Remained stable at £23.3 million.
**Operational Performance**
**Diversification Strategy** The Group expanded its product portfolio, introduced new ranges, and strengthened licensing partnerships, particularly in Toys, Golf, Cycling, and Home & Garden.
**Inventory Management** Disciplined inventory management and cost control helped safeguard and expand margins.
**Product Innovation** Launched 165 new products in H1 2025, with 48 more scheduled for H2, totaling 213 new launches for the year.
**Sourcing Strategy** Improved sourcing strategy reduced costs and lead times through closer supplier collaboration and the relocation of the Hong Kong office.
**Segment Performance**
**Toy Sports & Leisure (TSL)** Outdoor toy sales were down 3% vs last year, but new product launches and strong licensed brands like Bluey, Hot Wheels, and Paw Patrol supported revenues.
**Bikes** Bike sales grew by 50% vs last year, driven by favorable weather and new product launches. The Squish brand saw a 64% sales increase, and electric bikes remained a core growth driver.
**Golf** Golf sales were down 3% vs last year due to phasing of orders, but new products and refreshed ranges supported forward orders.
**Home & Garden (HMGD)** Sales increased by 16% vs last year, boosted by exceptionally hot weather and new product categories like outdoor heating and home décor.
**Online and Direct-to-Consumer** Jack Stonehouse sales grew by 68% vs H1 2024, and marketplaces delivered 5% revenue growth.
**Outlook**
**Trading Update** July and August 2025 showed a 11% year-to-date sales growth, and full-year trading is expected to be in line with market expectations.
**Dividend Policy** The Board plans to resume dividend payments when profits permit in the future.
**Strategic Focus** Continued emphasis on diversification, operational efficiency, and innovation to drive sustainable long-term growth.
**Challenges and Opportunities**
**Macroeconomic Environment** Consumer confidence remains subdued due to unemployment, rising costs, and cost-of-living pressures, but lower interest rates and stable shipping rates provide some optimism.
**Future Prospects** The Group is cautiously optimistic about improving conditions in the latter half of 2025 and beyond, with a strong focus on newness and innovation to drive growth.
In summary, Tandem Group PLC demonstrated resilience and growth in H1 2025, with improved financial performance and strategic advancements positioning the Group for sustainable long-term success.