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Brompton's profits have been almost wiped out after a challenging year as the British bike maker sold less than expected amid “global economic uncertainty”.
The fold specialist, which was founded by Andrew Ritchie in 1975, reported pre-tax profits of just £4,602 for the 12 months to March 31, down from £10.7m the previous year.
Group sales fell 5.3 per cent to £122.6 million, largely affected by lower sales in the UK and Europe, according to Companies House filings. The company recorded a loss after tax of £1 million.
The results represent a sharp decline in the fortunes of Brompton, which has grown in recent years to become the UK's largest bike maker and launched in October the £2,399. ing linewhich has larger wheels than the rest of its lineup and more powerful brakes to handle off-road trails.
Brompton The company said the sales decline was driven by the harsh economic climate and “challenges in the cycling industry” after demand for bikes and cycling products boomed during the Covid-19 pandemic. She added that the company missed “budgeted sales” and struggled to cut costs quickly because most of them were fixed.
The privately owned company, which employs 844 staff, raised £19 million in May 2023 in a financing round led by BGF, a £3 billion British investment fund backed by five major banks, to back the project. Pay off debts Accelerating brand growth.
It sells its products through stores, online, dealers, distributors and franchisees, with exports accounting for 80 percent of unit sales. It said it was still seeing a shift toward more premium products, which partly offset lower revenues as it sold fewer bikes.
However, operating costs rose 15 per cent to £62.7m, equivalent to just over half its revenue, due to increased spending on staff and marketing in relation to growth ambitions. Bike unit sales reached 84,899, down 8.2 percent from the previous year.
During this period, the company became a “B Corporation,” a movement that promotes a balance between profits and sustainable business practices.
Brompton did not immediately respond to a request for comment.
