Brompton going tits up?

C

Canuk

Senior Retro Guru
It seems that after two years of heavy discounting, the little wheel bike company success is over. I have a soft spot for Moulton and Brompton, but this year their profits are down 99%!!!!

WTF is happening to the cycle trade?

'The boss of Brompton Bicycle has predicted that 2025 will be another year of turmoil for the bike industry after profits at the British folding bicycle maker dived by more than 99% amid a wave of discounting by rivals.'
 
Canuk said:
It seems that after two years of heavy discounting, the little wheel bike company success is over. I have a soft spot for Moulton and Brompton, but this year their profits are down 99%!!!!

WTF is happening to the cycle trade?

'The boss of Brompton Bicycle has predicted that 2025 will be another year of turmoil for the bike industry after profits at the British folding bicycle maker dived by more than 99% amid a wave of discounting by rivals.'
Click to expand...

1% of a profit is still a profit.
As long as you break even, you can trade forever.

It does sound a little like a warning though but I would think brompton can afford to lose a few million before they turn turtle.

Chain reaction lost money every year iirc, and ended up with £150,000,000 debt.

All you need is a good business plan to take to the bank manager, get afew mil more credit.

And he probably owns a brompton, not a Nukeproof🤣
 
Everyone I know who was ever in the cycle trade ( probably more than a dozen acquaintances and friends) is no longer in it. Admittedly that covers 40 odd years but never the less in my mind it suggests it has always been a tough business. I wish Brompton well and I wish I could afford one !
 
Rapparee87 said:
Profits were £4600, no there's not a typo or a missing zero or two. Down from £10,700,000.
Click to expand...

Mind you I'm seeing that with Covid effect - loads of sales in the first couple of years, followed by a dip the next couple, averaging it all out.

Consequently if you kept your stock stable, you'd see a fat profit 22/23 followed by a break- even (at best) 23/24.

Adding up to 2 normal years.

Those businesses that didn't carry forward the surplus takings in 22/23 will be dead by next year imo
 
bikeworkshop said:
1% of a profit is still a profit.
As long as you break even, you can trade forever.
Click to expand...
This can be true. But usually applies to small businesses where the owner is hands on.

But it's also squeaky bum time for owners, investors, creditors, management and employees.

What happens is confidence drops, the good employees jump ship, creditors tighten terms, investors withdraw and decline sets in.


Whilst they are a marvellous piece of kit, they are just too darn expensive for anyone other than those who like their brand name toys and the London City set. Remember, most people see the bicycle as being cheap and see alternatives in the local travel centre for £200. Those in the know will buy a Dahon for half the price.

Add in the credit crunch and office folk working from home and it's easy to see why sales have dropped
 
I agree with most of the above, but their sales in the far East and China have been very strong. Admittedly it's a niche product, but in the age of everything/everywhere internet always on, niche is profitable.

I must admit that if I saw a 99% drop in profits, my arse would be touching cloth directly.

There are some grim predictions for a global turndown in 2025, exacerbated no less by team Trump/Musk turning the screw on tariffs and imports. My brother in law would for a well known whisky distiller and they are absolutely bricking it. Better get the rounds in while you still can!
 
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