StockMarketWire.com - Sports and mobility equipment retailer Tandem posted a rise in first-half profit after sales climbed 14%, helping to buffer pressure on margins from supply shortages.

Pre-tax profit for the six months through June increased to £1.91 million, up from £1.41 million year-on-year.

Gross profit margin fell to 31.5% compared, down from 32.8%, primarily as a result of increased supplier and freight costs, not all of which could be passed onto customers.

Still, the higher sales volumes helped gross profit rise 9% to £6.1 million.

Tandem declared an interim dividend of 3.43p per share, up 10% year-on-year.

'The challenges previously reported have continued over the last two months since our AGM update,' it said.

'Global demand remains high with shipping containers still in short supply.'

'Input costs, having risen significantly during the year to date, have yet to return to more reasonable levels.'

'We continue to manage these challenges well, where necessary deferring shipments and seeking alternative shipping routes to minimise cost whilst seeking to maintain timely supply of product. ' Revenue to 31 August 2021 was about £27.6 million, compared to £24.2 million for same period in the prior year.

'Therefore, the outlook for the remainder of 2021 remains positive and the Board are confident that with revenue to 31 August 14% ahead of the prior year and a current sales order book of approximately £30 million, the G=group will deliver another strong year.'




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