Tandem Group PLC (AIM:TND), the AIM-listed designer and distributor of sports, leisure and mobility equipment, rose 6% to 178p on Monday, making it one of a handful of risers on the small-cap market, after the company reported profits ahead of expectations and reinstated its dividend.
Group revenue for the year ended 31 December 2025 rose 6.2% to £26.2 million, with bicycles emerging as the standout performer.
Bicycle revenues surged 37.5% to £10.2 million, driven by a 47.6% increase in mechanical bike sales and a 10.7% rise in children's bikes, which the company said outperformed the broader sector.
Golf and Home & Leisure also grew, with golf up 8.6% to £2.8 million and Home & Leisure up 30.1% to £3.0 million, the latter helped by record heatwaves that boosted demand during key selling periods.
The one drag was Toys, Sports & Leisure, where revenues fell 17.5% to £10.2 million, reflecting softer demand, shifts in retailer purchasing patterns and the timing of promotional activity.
Gross profit margin improved by 120 basis points to 31.1%, lifting gross profit to £8.1 million from £7.4 million a year earlier.
Underlying profit before tax reached £692,000, up from £510,000 in 2024, while statutory net income came in at £850,000, swinging from a loss of £60,000 the prior year after the benefit of deferred tax credits.
Diluted earnings per share were 15.4 pence, compared with a loss of 1.1 pence in 2024.
Net debt more than halved to £1.9 million from £4.3 million, and the board proposed reinstating the dividend at 3.0 pence per share following two years without a payout.
Net assets rose to £26.1 million, supported by a property revaluation of £15.9 million.
The company said trading momentum entering 2026 had been positive, with early sales tracking in line with board expectations.