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(Sharecast News) - Sports equipment company Tandem Group warned on Wednesday that full-year profits were set to come in well behind expectations as a result of weak toy and garden products sales.
Tandem said full-year revenues were now expected to be between £22.0m and £23.0m, with the higher end of this range being subject to expected freight-on-board orders being shipped in December.
As a result, pre-tax losses were seen at £900,000 to £1.3m, with this range again being dependent on the timing of its expected FOB orders.
"The economic environment in the consumer sector continues to pose significant challenges, reflecting the broader issues faced by many UK businesses and in the closing months of the year, the domestic sales market has proven to be more challenging than had previously been anticipated, with the impact of suppressed consumer spending further complicating the landscape," cautioned Tandem.
Tandem stated declining trends in toy and FOB sales persisted for the remainder of the year, significantly affecting overall profit levels, while its home and garden division also continued to face "notable challenges" throughout 2023, largely attributed to adverse weather conditions that starkly contrasted with the more favourable climate experienced in 2022.
As of 1045 GMT, Tandem shares had sunk 20% to 114.0p.
Reporting by Iain Gilbert at Sharecast.com
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