Tandem Group PLC (LON:TND) shares jumped higher on Wednesday as it hiked its full-year dividend and said its order book is “considerably ahead” of last year.
The AIM-listed bicycle maker, which also makes toys and has a licensing deal with The Walt Disney Company (NYSE:DIS), raised its dividend by 5% to 4.31p per share as it returned to a net cash position.
READ: Tandem shares sprint higher amid bullish outlook for 2019
The maker of Dawes bicycles and Ben Sayers golf clubs said revenue fell by nearly 12% to £36.8mln and operating profit before finance costs and taxation dipped 6% to £2.2mln. but the company said the new year has started “very strongly”.
Tandem’s chairman Mervyn Keene said: “We are optimistic about the outlook for 2019.”
He added. “Whilst we are mindful of macro-economic uncertainties, we expect to achieve significant turnover growth and we continue to be extremely confident in our ability to deliver profitability to our shareholders.”
In lunchtime trading, shares in Tandem Group were 20% higher at 205p.