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Bicycle and leisure equipment retailer Tandem said it expected to post a 'materially higher' annual profit after its margins were boosted by increased enthusiasm for cycling during the pandemic.
Revenue for the year through December was around £37.1 million, the company said, down from £38.8 million posted for 2019.
Revenue in the third quarter had continued to be pressured by caution among retailers, offsetting demand for bicycles and outdoor products. In the fourth quarter, however, revenue had risen by about 6% year-on-year-on-year.
Gross profit margins continued to be stronger due to an increased proportion of domestic sales in Tandem's wheeled toy business where margin was traditionally, coupled with higher bicycle and golf sales.
Operating expenses fell by about 11%, principally as a result of the Covid-19 impact, with reduced exhibition costs and travel for much of the year.
Turning to its dividend, Tandem noted that a pension revaluation had resulted in a 5% ongoing increase in pension contributions agreed.
'There is a provision that in any calendar year should dividend payments exceed pension deficit contributions, an additional contribution, equal to the excess, will be paid into the scheme,' it added.
'However, the board's objective to operate a progressive dividend policy and to increase the dividend as trading results and funds permit remains in place.'
At 8:06am: (LON:TND) Tandem Group PLC share price was 0p at 510p