StockMarketWire.com - Bicycle and other leisure equipment retailer Tandem said its profits had risen 'considerably' in the year to date amid a jump in sales.

The company, however, said pressure on stock availability, higher freight rates and bicycle supply constraints had put pressure on its margins.

Revenue for the five months through May had risen around 24% year-on-year, the company said in a trading update.

'Profitability was also considerably ahead of the prior year augmented by our cost base not yet returning to pre-Covid levels,' it added.

Tandem said grading had remained robust since its last update in February, albeit against a much stronger prior year comparative.

In the B2B businesses, revenue from sports, leisure and toy ranges was up around 32% and sales in the Ben Sayers golf business had more than doubled.

Bicycle revenue was up about 21%, with ebike revenue more than doubling.

'One of our biggest challenges continues to be stock availability, particularly on bicycles, which once more is being hindered by worldwide shipping capacity and container availability,' Tandem said.

'Freight costs have increased again in recent weeks and global demand for components, particularly for bicycles, remains high which has impacted our margin.'

'We also continue to be concerned by ongoing cost increases, with significant rises in input costs such as steel, oil, plastic and cardboard all of which also put pressure on margin.'

'Further, we remain mindful that Covid-19 is a continuing problem in some of our supplier countries.'




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