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Brompton’s profits were almost wiped out after a challenging year in which the British bicycle 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 £10.7mn a year earlier.
Group turnover fell 5.3 per cent to £122.6mn, largely dragged down by lower sales in the UK and Europe, according to Companies House filings. The company recorded a loss after tax of £1mn.
The results mark a sharp decline in fortunes for Brompton, which in recent years has grown to become the UK’s largest bike maker and in October launched the £2,399 G Line, which has bigger wheels than the rest of its line-up and more powerful brakes to handle off-road trails.
Brompton said the drop in sales had been 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. It added that the company had missed “budgeted sales” and struggled to cut costs swiftly because most of them were fixed.
The privately owned business, which employs 844 staff, raised £19mn in May 2023 in a funding round led by BGF, a £3bn UK investment fund backed by five large banks, to pay down debt and accelerate the brand’s growth.
It sells its products through stores, online, dealers, distributors and franchisees, with exports accounting for 80 per cent of unit sales. It said it continued to see a shift towards more premium products, which had partly offset the fall in revenue as it sold fewer bikes.
However, operating costs rose 15 per cent to £62.7mn, equivalent to just over half its revenues, because of increased spending on staff and marketing relating to its growth ambitions. Bike unit sales reached 84,899, down 8.2 per cent on a year earlier.
During the 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.
