Tandem Group's shares surge on promise of increased 2017 profitability
Shares in Tandem Group are up almost a third as investors liked its confident assessment that, despite a degree of macro-economic uncertainty, the group will show increased profitability in 2017.
FTSE AIM All-Share
738.77
09:05 07/10/24
Tandem Group
162.50p
16:50 04/10/24
It added that group operating profit after exceptional items was seen to be ahead of the prior year, with revenue for the 12 months to 31 December 2016 up 12% on the year to £38.4m.
"Margins were under pressure during the second half of the year as a result of sterling weakness and increased import duty on some of our products as we previously reported," the company said in a trading update.
"To compensate for this we implemented a price increase in the latter part of the year, negotiated better buying prices with suppliers and where this could not be achieved, re-sourced to new factories," it added.
"As a result of these actions we expect to see an improvement in margin in 2017."
At 10:18 GMT, shares in AIM-quoted Tandem were up 29.27% to 132.5p each.