Tandem Group PLC reported revenue grew 10.5 percent in 2014, but that only 30 percent of the growth came from its bicycle business, which continues to face challenging conditions in the United Kingdom's independent bicycle dealer (IBD) channel.

The UK company, which sells bicycles, light electric vehicles (LEV), soccer golf, and table sports products reported total said revenue reached £31.3 million ($41 mm) for the year ended Dec. 31, 2014, up £3 million ($4 mm) from the year ended Dec. 31, 2013. Pro Rider Limited, an online dealer of scooters, e-bikes and other mobility products acquired last summer for £2.58 million plus earn outs, contributed £1.4 million of the growth. Gross margin grew 130 basis points to 30.5 percent.

Profit, excluding approximately $1 million in  restructuring, currency exchange and pension costs, increased by 55.9 percent to £1.28 million. Pro Rider Limited contributed £136,000 in operating profit. Net profit after taxes, borrowing costs and the exclude items rose more than 4.5 times to £1.63 million.

Sales of bicycles, bicycle accessories and mobility products grew 6.1 percent to £16.1 million ($21 mm), as the addition of Pro Rider and growth at the Dawes bicycle brand and corporate sales more than offset a decline at the Claud Butler brand. Operating profit, excluding allocation of corporate charges and exceptional costs, rose 83.6 percent to  £874,000.

Tandem's Sports, Leisure and Toy business grew revenues 15.5 percent to £15.2 million ($20 mm) and operating profit nearly 40 percent to £1.45 million. The business consists of MV Sports & Leisure Ltd, which sells kids bikes and two-wheel toys under two dozen licensed brands as well as soccer, golf, billiards and table sports products.

Tandem Chairman Mervyn Keene said the IBD market “remained tough and challenging” and that IBDs remained reluctant to increase inventory in the first quarter of 2015. As a result, Tandem expects growth this year to come primarily from corporate sales and Pro Rider, which sells scooters, electric bicycles and electric golf trolleys from its own websites and via third party sites.