28 May 2020 – trading update
A trading update has been provided although it remains difficult to predict how the year as a whole will turn out. The impact of Covid-19 on trading has been mixed. Bicycle sales have been materially higher, with revenue 77% ahead of last year and the forward order book significantly higher, although restocking quickly enough has been a problem. Online sales have also been strong and outdoor products have sold well. The national retailer business has been hit, with the majority of toy shops closed and there has been a material impact on revenue. National retailers have also been slower to place new orders and the national retailer order book is approximately 21% behind last year. Overall, revenue is slightly ahead of the prior year but the overall order book is approximately 3% behind last year. The company expects revenue to fall behind the prior year during the summer period. A further update is anticipated at the AGM on 25 June. We feel that the shares remain cheap and 2020 should be a very profitable year. BUY.