Tandem, the London-listed toys and bikes company, had been bracing for a potentially damaging Toy Story market flood, but today it has reassured investors that its own wares are still selling well and that it actually expects to exceed expectations for the whole year.
Strong demand for cycles has boosted its optimism and Tandem, whose products include Falcon bikes, Dr Who skateboards and Ben 10 scooters, said revenues held steady in the six months to July 31 at £19m.
Its trading statement highlighted revenue from the Dawes cycle business, which showed "exceptional growth, well ahead of market performance" and Tandem noted "increasing demand" for bicycles", particularly the flagship brands of Claud Butler and Dawes.
In spite of a catalogue of challenges, including US dollar volatility and increases in freight and raw material prices, Tandem expects profit before tax for the half year to be ahead of last year. For the year as a whole, which runs to January 31, the company expects results to be "well ahead of market expectations."
It brought relief to shareholders on the Toy Story front, commenting:
"Despite the fears that Toy Story merchandise would saturate the market for Autumn/Winter 2010 following the movie release, revenue from our licensed properties, including Ben 10 wheeled toys, is likely to exceed our earlier expectation."
The shares are up almost 10%, or 11p, at 128p in late trading.
