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Brompton’s profits were almost wiped out after a challenging year in which the British bike maker sold less than expected amid “global economic uncertainty”.
The fold-up specialist, which was founded in 1975 by Andrew Ritchie, reported pre-tax profits of just £4,602 for the 12 months to March 31, down from £10.7m a year earlier.
The group’s turnover fell 5.3 per cent to £122.6m, mainly dragged down by lower sales in the UK and Europe, according to Companies House filings. The company recorded a post-tax loss of £1m.
The results mark a sharp decline in fortunes for Brompton, which in recent years has grown to become the UK’s biggest bike maker and in October launched the £2,399 G line, which has bigger wheels than the rest of its line and more powerful brakes. to handle off-road trails.
Brompton said the sales decline was driven by a tough economic climate and “challenges in the cycling industry” following a boom in demand for bikes and cycling products during the Covid-19 pandemic. He added that the company had missed “budgeted sales” and struggled to cut costs rapidly because most of them were fixed.
The privately owned business, which employs 844 staff, raised £19m in May 2023 in a funding round led by BGF, a £3bn UK investment fund backed by five major banks, to pay down debt and to accelerate brand growth.
It sells its products through stores, online, dealers, distributors and franchises, with exports accounting for 80 percent of the unit’s sales. It said it continued to see a shift to more premium products, which had partially offset the drop in revenue as it sold fewer bikes.
However, operating costs rose 15 per cent to £62.7m, equivalent to just over half of its revenue, due to increased staffing and marketing costs linked to its growth ambitions. Bike unit sales totaled 84,899, down 8.2 percent from a year ago.
During this period, the company became a “B Corporation”, a move that promotes a balance between profits and sustainable business practices.
Brompton did not immediately respond to a request for comment.
