Tandem Group plc
Investor presentation September 2019
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Tandem Group plc Investor presentation September 2019 1 - - PowerPoint PPT Presentation
Tandem Group plc Investor presentation September 2019 1 DISCLAIMER This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the
Investor presentation September 2019
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This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall any part of it nor the fact of its distribution formpart of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. This document has not been verified, does not purport to contain all information that a prospective investor may require and is subject to updating, revision and
without notice. In furnishing this document, the Company does not undertake or agree to any obligation to provide readers with access to any additional information or to update this document or to correct any inaccuracies in, or omissions from, this document that may become apparent. Recipients of this presentation should each make their own independent evaluation of the Company and should make such other investigations as they deem necessary. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its
any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. This document contains forward-looking statements concerning the financial condition, results of operations and businesses of Tandem Group plc (“the Company”). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this
this presentation. Neither the Company nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred fromthe forward-looking statements contained in this presentation.
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OPERATION S AN D PRODUCT RAN GES MV Sports
7 MV Sports & Leisure is our UK based sports, leisure and toy business providing sales, product development and administrative functions The MV Sports Hong Kong office based in Kowloon provides quality assurance, quality control, factory inspections, sourcing and sales support 70,000 square foot warehouse and offices in Birmingham 40 employees based across two locations FOB sales generally managed by the Hong Kong office
Operat ations
Products designed in the UK with manufacturing
the Far East
OPERATION S AN D PRODUCT RAN GES MV Sports
Licenc nces: s: Avengers Infinity War 1*, Avengers*, Barbie*, Batman*, Ben 10*, Bored, Bumblebee*, Disney Pixar Cars*, Disney Pixar Finding Dory*, Disney Princess*, Electrick, E-Moto, Fireman Sam*, Frozen*, Grow & Go, Hatchimals*, Hot Wheels*, Incredibles 2*, Jo JoSiwa*, Jurassic World Fallen Kingdom*, Justice League*, The Lion King*, L.O.L Surprise!*, Marvels Avengers*, Minnie Mouse*, Miraculous*, My Little Pony*, Nella the Princess Knight*, Nerf*, Paw Patrol*, Peppa Pig*, Pikmi Pops*, PJ Masks*, Powerpuff Girls*, Rusty Rivets*, Shopkins*, Spiderman*, Star Wars*, Stunted, Superwings*, Teletubbies*, Teenage Mutant Ninja Turtles*, Toy Story*, Thomas & Friends*, Transformers*, Trolls*, Twista, U-Move, Wigwam, Wired, Zoomies
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* under licence
OPERATION S AN D PRODUCT RAN GES MV Sports
Product ducts
and accessories
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www.mvsports.com
OPERATION S AN D PRODUCT RAN GES MV Sports
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Own brand nd product ducts High specification pre-school scooters and ride-ons Widely acknowledged as being the oldest golf company in the world
www.bensayers.co.uk
Stunt scooters and accessories
OPERATION S AN D PRODUCT RAN GES MV Sports
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Own brand nd product ducts (cont.) nt.) High specification pre-school scooters and ride-ons Leading UK supplier of outdoor play products Well renowned scooter, pool and multi-games table brand
www.hedstrom.co.uk
OPERATION S AN D PRODUCT RAN GES MV Sports
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Own brand nd product ducts (cont.) nt.) Scooters, electric scooters, glideboards and glidekarts UK’s leading range of kids football training products High quality, fun skateboards
OPERATION S AN D PRODUCT RAN GES MV Sports
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Custom
rs include lude:
OPERATION S AN D PRODUCT RAN GES MV Sports
Marketing ng
– Trade fairs (London, Nuremberg) – TV advertising to maintain position as market leader in licensed wheeled toys – Press advertising – Page contributions to major retailers – Customer specific marketing initiatives – Website marketing and own brand online retailing – Recognised market leader in wheeled toy innovation and product development
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OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles
15 Tandem Group Cycles is still based in Birmingham, more than 90 years since Dawes Cycles began All products expertly designed and developed in the UK 3rd party warehousing used 11 employees based in the UK Manufacturing
Operat ations
Strong focus on heritage and well established brands
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Squish
Brand ands and produ duct cts – Lightweight children’s bicycles – Independent bicycle dealers (RRP £230 - £500) – Launched 2017, rapid growth since – 14-26” wheel – Exciting designs
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www.squish.bike
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Dawes
Brand ands and produ duct cts – Family cyclists and touring – Independent bicycle dealers (RRP £70 - £1,500) – Long established, respected heritage brand – Launching additional ebikes in 2020 – Quality and value
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www.dawescycles.com
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Claud Butler
Brand nds and produ duct cts – MTB and ‘urban’ type bicycles – Independent bicycle dealers (RRP £250 - £1,800) – Competitive price points – Limited edition models with spot buying opportunities – ebike development in 2020
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www.claudbutler.co.uk
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Falcon
Brand ands and produ duct cts – Family cycles – National Retailers (RRP £150 - £1,000) – Long established heritage brand – New ebikes introduced in 2019 – Strong consumer awareness
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www.falconcycles.co.uk
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Boss
Brand ands and produ duct cts – Youth and adult cycles – National Retailers (RRP £180 - £500) – Focus on MTB – Lifestyle brand – Targeting a more “serious” national retailer customer
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www.bosscycles.co.uk
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Townsend
Brand ands and produ duct cts – Children’s bicycles – National Retailers (RRP £50 - £130) – Long established, well known brand with 130 year history – Entry level but with focus on value – Strong brand recognition
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www.townsendcycles.co.uk
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Elswick
Brand ands and produ duct cts – Heritage style bicycles for all ages – National Retailers (RRP £75 - £800) – Well renowned cycling brand – Traditional with a modern edge – Targeting leisure cyclists
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www.elswickbikes.co.uk
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles: Zombie
Brand ands and produ duct cts – Children’s and youth BMX bikes – National Retailers (RRP £130 - £230) – Focus on BMX and dirt jump – Take advantage of current market trends – Built for strength and long life
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www.zombiebikeco.com
OPERATION S AN D PRODUCT RAN GES Tandem Group Cycles
Sales s and d Marketing rketing – Team of UK sales representatives supported by telesales – Roadshows, events and trade fairs – Dealer support and POS – Promotional material – Customer specific marketing initiatives – Strong customer service – Website marketing Customer mers – 65% independent retailers/distributors – 35% national retailers
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OPERATION S AN D PRODUCT RAN GES Expressco Direct
25 Located in Northampton, Expressco is our online, direct to consumer business All products developed in the UK 33,000 square foot warehouse with additional 3rd party space utilised on an ad-hoc basis 24 employees based in the UK, supported by Hong Kong office for sourcing, QA and QC Manufacturing
Operat ations
OPERATION S AN D PRODUCT RAN GES Expressco Direct: Garden Comforts
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Brand nds and produ duct cts – Focus on garden and outdoor products – Home of own brand ‘Airwave’ gazebos and party tents – Parasols and spas – Garden furniture and storage – Outdoor play
www.garde w.garden-camp camping. ng.com com
OPERATION S AN D PRODUCT RAN GES Expressco Direct: H
www.j w.jac ackst stone
house.c .com
w.athome homeco comf mforts.c s.co.uk
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Brand nds and produ duct cts – Indoor home, electrical and furnishings – Own brand ‘Jack Stonehouse’ radiator covers – Heating and cooling – Small electrical appliances – Furniture, lighting and mirrors
OPERATION S AN D PRODUCT RAN GES Expressco Direct: Pro Rider Mobility
www.pro w.prori ride dermo mobili bility. y.co com
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Brand nds and produ duct cts – Mobility scooters and mobility accessories – Rise & Recline chairs – Own brand ‘Pro Rider’ – Distributor for Drive, Freerider, Kymco, Pride, Sunrise and TGA – Strong aftersales and service capabilities
OPERATION S AN D PRODUCT RAN GES Expressco Direct: Pro Rider Leisure
www.pro w.prori ride derle leisur sure.c .com
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Brand nds and produ duct cts – Electric and manual golf trolleys – eBikes and manual own brand ‘British Eagle’ bikes – Ride-ons and fitness – Distributor for ‘Bioflow’ sports bands – New product development for 2020
OPERATION S AN D PRODUCT RAN GES Summary
Core competencies
management
Group synergies
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GROUP STRATEGY Major objectives
To
hance shareho arehold lder er value lue by:
performance is recognised
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GROUP STRATEGY Building brands and licences
Our ur ob
ectives tives are e to:
wheeled products
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GROUP STRATEGY Acquisitions and disposals
Whil ilst st our r focus us is for r org rgan anic ic growth rowth we conti tinue ue to have e an
istic c approa proach ch to M& M&A:
Acquisitions: uisitions:
Dispo sposa sals: ls:
potential has been reached 34
GROUP STRATEGY Infrastructure and resources
We will inve vest st as appropriat ropriate e to enable ble our object ectiv ives es to be achieved ieved by:
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GROUP STRATEGY Conclusions
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To Torealise aliseour
rategy egy we we:
environment
carefully control our cost base
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FIN AN CIALS AN D TRADIN G UPDATE Summary 6 months to 30 June 2019
38 Group Revenue
+ 27%
Gross Profit
+ 30%
Gross Profit %
+ 80 bps
Basic EPS
3.0p v (7.0)p
Net Profit
£155k v £(356)k
Dividend
+ 10%
FIN AN CIALS AN D TRADIN G UPDATE Profit & Loss Account
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FIN AN CIALS AN D TRADIN G UPDATE Profit & Loss Account commentary
licence performance
re-sourcing, new products and concentration on profitable product lines
resource management
contracts from credit to charge in the period
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FIN AN CIALS AN D TRADIN G UPDATE Balance sheet
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FIN AN CIALS AN D TRADIN G UPDATE Balance sheet commentary
saleable
growth, no material bad debts
position (£(2.0)m v £(3.5)m)
during the period, full valuation to be carried out at year end
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FIN AN CIALS AN D TRADIN G UPDATE Outlook
indoor, sports and leisure
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FIN AN CIALS AN D TRADIN G UPDATE Dividend
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