Tandem Group
Website:
Tandem Group
Index:
AIM
EPIC: TND
Supersector:
Personal and Household Goods
Sector:
Leisure Goods
Subsector:
Recreational Products and Vehicles
Market Cap:
£9.38M
Payout Frequency: Annual
Tandem Group Dividend Analysis and Summary
Dividend declaration (ex-dividend date: 04/06/2026)
- Proposed dividend: 3.0p per share (reinstated final dividend)
- Ex-dividend date: 04/06/2026
- Record date: 05/06/2026
- Payment date: 06/07/2026
- Approval: subject to AGM on 17/06/2026
- Earnings cover: FY25 basic EPS 15.5p ? cover of approx. 5.2x
- Estimated cash cost: c. £0.165m (c. 5.49m shares x 3.0p), small relative to FY25 operating cash inflow of £2.4m
Financial backdrop and coverage
- FY25 revenue £26.2m (+6.2%); underlying PBT £0.69m; statutory net income £0.85m
- Gross margin improved to 31.1%; Adjusted EBITDA £1.31m
- Net debt reduced to £1.9m (from £4.3m); cash £1.54m; interest cover 3.5x
- Operating cash flow strengthened (net inflow £2.4m), supported by inventory and payables movements
- Pension cash outflow £0.61m; deficit cut to a de minimis £16k
Analysis: sustainability and growth trajectory
- Coverage is strong (c. 5x on EPS; ample versus cash generation), and the absolute dividend outlay is modest. On current metrics, the payout looks prudent and sustainable.
- Reinstatement signals returning confidence after balance-sheet repair (net debt more than halved) and margin improvement; however, management frames this as a cautious restart rather than a formal progressive policy.
- Scope for gradual growth exists if FY26 trading momentum continues and margin discipline holds. Watch for normalisation of the FY25 working-capital tailwind, which buoyed cash flow.
- Capital allocation remains conservative: deleveraging, tight inventory, low capex, and ongoing pension funding; these support maintaining a covered payout before contemplating higher distributions.
Structural or policy-related changes
- Leadership: Chair transition (Steve Grant stepping down; Jonathan Crookall to become Chair at the AGM). No explicit change to dividend policy indicated.
- No M&A, demergers, buybacks, or share consolidations announced.
Risks and flags relevant to dividend stability
- End-market exposure: Toys/Sports & Leisure declined 17.5% in FY25; demand remains sensitive to UK consumer conditions.
- FX and freight risk from Asia sourcing (USD exposure) despite hedging; potential shipping route disruptions tied to Middle East tensions could lift costs.
- Borrowings persist (though reduced); interest costs mitigated by a 2% cap on a portion of debt.
- Pensions: while the deficit is minimal, future market moves could require higher contributions and absorb cash.
- Growth initiatives (international bike rollout, D2C expansion) may increase working-capital needs, potentially competing with distributions in a softer demand scenario.
Read more
Tandem Group Annual Dividend Yield - 5.76%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/05/2022 |
30/06/2022 |
Final |
6.57p |
GBX |
| 06/10/2022 |
15/11/2022 |
Interim |
3.43p |
GBX |
Total (Annual Dividends Per Share):
10.00p
Dividend Yield =
Annual Dividends Per Share (10.00p)
÷ Share Price (173.5p)
= 5.76%
Tandem Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/06/2026 |
06/07/2026 |
Final |
3.0000p |
GBX |
| 11/05/2023 |
06/07/2023 |
Final |
6.57p |
GBX |
| 06/10/2022 |
15/11/2022 |
Interim |
3.43p |
GBX |
| 12/05/2022 |
30/06/2022 |
Final |
6.57p |
GBX |
| 07/10/2021 |
15/11/2021 |
Interim |
3.43p |
GBX |
| 13/05/2021 |
01/07/2021 |
Final |
5.50p |
GBX |
| 08/10/2020 |
10/11/2020 |
Interim |
3.12p |
GBX |
| 14/05/2020 |
02/07/2020 |
Special |
2.00p |
GBX |
| 14/05/2020 |
02/07/2020 |
Final |
3.04p |
GBX |
| 10/10/2019 |
11/11/2019 |
Interim |
1.56p |
GBX |
| 16/05/2019 |
03/07/2019 |
Final |
2.89p |
GBX |
| 11/10/2018 |
12/11/2018 |
Interim |
1.42p |
GBX |
| 17/05/2018 |
04/07/2018 |
Final |
2.75p |
GBX |
| 12/10/2017 |
13/11/2017 |
Interim |
1.35p |
GBX |
| 18/05/2017 |
03/07/2017 |
Final |
2.60p |
GBX |
| 13/10/2016 |
14/11/2016 |
Interim |
1.30p |
GBX |
| 26/05/2016 |
04/07/2016 |
Final |
2.50p |
GBX |
| 08/10/2015 |
07/11/2015 |
Interim |
1.25p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2023 |
|
6.570 |
|
GBX |
6.570 |
-34.300 |
| 2022 |
3.430 |
6.570 |
|
GBX |
10.000 |
11.980 |
| 2021 |
3.430 |
5.500 |
|
GBX |
8.930 |
9.430 |
| 2020 |
3.120 |
3.040 |
2.000 |
GBX |
8.160 |
83.370 |
| 2019 |
1.560 |
2.890 |
|
GBX |
4.450 |
6.710 |
| 2018 |
1.420 |
2.750 |
|
GBX |
4.170 |
5.560 |
| 2017 |
1.350 |
2.600 |
|
GBX |
3.950 |
3.940 |
| 2016 |
1.300 |
2.500 |
|
GBX |
3.800 |
204.000 |
| 2015 |
1.250 |
|
|
GBX |
1.250 |
|
Tandem Group Dividend Calculator
Tandem Group Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
-19.03%
|
| Years of Growth |
–
|
| Payout Ratio |
–
|
| Buyback Yield |
-0.63%
|
| Shareholder Yield |
1.14%
|
| P/E Ratio (TTM) | 11.04 |
|---|
| Forward P/E | 16.35 |
|---|
| P/FCF | 3.89 |
|---|
| Earnings Yield | 9.06% |
|---|
| FCF Yield | 25.71% |
|---|
| ROE | 3.4% |
|---|
| ROCE | 3.15% |
|---|
| Profit Margin | 3.25% |
|---|
| Operating Margin | 3.53% |
|---|
| Gross Margin | 31.09% |
|---|