Times remain tough in the bicycle industry. Over the past year and a half, several bicycle and e-bike manufacturers have gone bankrupt, including Stella, Amslod and VanMoof. Things are also going in the wrong direction for one of the largest manufacturers of folding bicycles, the British Brompton.
The British bicycle brand Brompton is celebrating its 50th anniversary this year, but the well-known maker of folding bicycles cannot escape the current malaise in the bicycle industry. Brompton has submitted its new annual accounts and The Guardian writes about the disturbing figures. Brompton saw its profits completely evaporate in one year.
According to the annual accounts, which ran until March 31, 2024, the company made a profit of 4,602 British pounds. In other words: just enough for one e-bike. That was up from no less than 10.7 million pounds a year earlier. The company’s turnover fell by more than 5 percent and sales fell by 8 percent. The red numbers will therefore quickly come into view.
Chaos in the bicycle industry, too large stocks
Like other bicycle manufacturers, Brompton is struggling with disappointing sales, which have led to a large surplus of bicycles. Given the ailing bicycle market for the remainder of 2024, Brompton’s next annual figures will not be much brighter. Several bicycle manufacturers and bicycle shops have also gone bankrupt in the United Kingdom in recent months.
“The cycling industry is still in chaos and that is not likely to change any time soon. Although 2025 will be slightly better than 2024, excess stock remains,” Brompton CEO Will Butler-Adams told The Guardian. “The industry has shot itself in the foot, but the long-term trends are in our favor.”
To keep its head above water, Brompton is making several cuts. For example, plans for a new head office have been postponed. GBP 16 million was also raised from an investment fund to have enough money to survive.
Cycling for commuting
Brompton is hopeful that a turnaround will come. Butler-Adams believes his company can respond to the increasing demand for bicycles for commuting in large cities. There is stiff competition in this area, not only from cheap e-bikes from new players, but also from electric shared bicycles.
The CEO has pinned his hopes on major cities such as Paris, London, New York and Seville, which are increasingly investing in cycle paths. “They want people to be more active. Cycling is good for health and air quality.”
Larger size folding bike
Last September, Brompton introduced a new line of folding bicycles with a larger size. The new Brompton G Line has 20-inch wheels instead of 16 inches, and there is also an electric version. It is not yet clear how well the G Line sells.
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Source: www.bright.nl
