Brompton’s profits have almost disappeared after lower UK and European sales

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Brompton’s profits are almost wiped out after a challenging year in which the British bike maker sold below expectations amid “global economic uncertainty”.

In the year The folding specialist, founded by Andrew Ritchie in 1975, made pre-tax profits of just £4,602m for the 12 months to March 31, down from £10.7mn a year earlier.

Group turnover fell 5.3 per cent to £122.6mn, dragged down largely by lower sales in the UK and Europe, according to reports from Companies House. The company recorded a loss after tax of £1mn.

The results show a sharp decline in fortunes for Brompton, which has grown to become the UK’s biggest bike maker in recent years and started at £2,399 in October. G lineIt has bigger tires than the rest of the lineup and more powerful brakes to handle off-road trails.

Brompton He said the decline in sales was due to the tough economic climate and challenges in the cycling industry, following an increase in demand for bikes and cycling products during the Covid-19 pandemic. The company said it had missed “budget sales” and struggled to cut costs quickly as most were fixed.

The privately-held business, which employs 844 staff, has raised £19mn in a May 2023 funding round led by BGF’s £3bn UK investment fund, backed by five major banks. Pay the debt and accelerate brand development.

It sells its products through stores, online, distributors, distributors and franchises, with exports accounting for 80 percent of unit sales. It said it continued to shift to more premium products, which partially offset the fall in revenue by selling fewer bikes.

However, operating expenses rose 15% to £62.7mn, just over half of revenues, due to increased spending on staff and marketing related to its growth ambitions. Bike unit sales totaled 84,899, down 8.2 percent from a year ago.

At that time, the company became a “B Corporation”, a movement that promotes a balance between profit and sustainable business practices.

Brompton did not immediately respond to a request for comment.