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Brompton boss Will Butler-Adams put the situation down to a “really sad situation” in the global bike market as the wheels stopped being sold.
Profits for the year to the end of last March were just £4,602 compared with £10.7 million the previous year.
Demand surged during the pandemic, but producers overestimated how long the boom would last and now have unwanted goods on their hands.
Sales at Brompton, which makes folding bikes popular with many commuters, fell 5 per cent to £122.6m, according to the accounts.
Overstock: Brompton’s profits for the year to the end of last March were just £4,602 compared with £10.7m the previous year.
Costs rose 15 per cent to £62.7m amid an increase in spending on staff and marketing to meet expected growth, which did not appear.
It was also affected by higher raw material and logistics costs. As a result, Brompton eliminated dividend payments.
Butler-Adams told The Guardian: “The industry is still in crisis and it will not get better this year.” “It won’t be as bad as in 2024, but there is still overstock.”
UK sales fell almost £2m to £31.7m. In Europe they fell 21 per cent to £24.6 million.
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