Shares in Tandem Group PLC (AIM:TND) fell 7% after the bikes, scooters, golf and garden swing maker pointed to various sizeable challenges to trading, but said it still expected to report results in line with expectations.
In a statement ahead of its annual shareholder meeting, the owner of Claude Butler, Dawes, Ben Sayers and Hedstrom brands highlighted challenges including a trebling of freight costs due to Red Sea disruption, wet weather and high interest rates.
"Despite these headwinds, our commitment to strategic planning and the group's resilience continues to position us favourably for the remainder of the year," it said.
Overall sales are up 3% compared to the prior year as of May 31, 2024, with Toys, Sports, and Leisure division sales up 22%, but Home & Garden sales down 19% and eMobility down 15%.
Golf division sales, including electric golf trolleys, were up 14%, while bicycle sales rose 9%, with the Squish brand children's bikes up 21%.
Sales in the eMobility division have struggled compared to the high benchmark set in the previous year when eBike sales tripled, though underlying demand for eBikes "remains robust", Tandem said, expressing confidence in the long-term growth potential of this division.
On eScooters, after Ireland's legalisation management are hopeful that the UK will follow suit, though the immediate aftermath of a UK general election raises doubts about how soon this would happen.