Brompton going tits up?

[Canuk]

Any gen on Mercian? They've been very quiet since their 'reboot'...

 

[bikeworkshop]

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!

There's a risk of the "tupperware effect", where the product lasts long enough that the market ends up saturated.
I think this is what happened to Islabikes, and if you compare their used prices with Brompton used, it looks similar.

 

[Russell]

Turnover year on year is down 5% and unit sales down 8%. The collapse of their profitability is not due to a lack of sales.

 

[Woz]

They recently launched a 20" model in addition to the usual 16" to give a better ride

Evolution and cutting edge development right there.

 

[Canuk]

Turnover year on year is down 5% and unit sales down 8%. The collapse of their profitability is not due to a lack of sales.

In the article it seems the cost cutting and profit slashing of their competition has hammered sales. Hard to compete when the likes of Dahon are offering 50 percent discounts.

 

[Betsy]

They're also very stealable which keeps your sales buoyant in the short term while they're replaced on the insurance but once you've been jousted off by Roadmen a few times scuffing your new Trickers country boots in acorn brown, tearing your A.P.C corduroy trousers and putting a hole on your favourite Nigel Cabourn Mallory jacket.. you buy a Dahon

 

[LondonClassic]

Pedicting a further year of turmoil is a long way from the end of the line. Bromptons balance sheet looks pretty decent to me, and they took equity fund investment of £19M last year. Those guys don't bet on donkeys.

If you're inyterested the last half decade of baseline accounts are here.

The EBITDA looks pretty decent to me. They're investing in new models and took on more staff. You would expect to take a hit on profit.

So I think the thread title is more than slightly alarmist.

 

[Russell]

Their accounts show a small drop in turnover of 5% from £129m to £122m and a drop in unit sales of 8% from 92k bikes in 2023 to 85k bikes in 2024. Neither of these explain a £10.7m drop in profits or correlate with the line that competition has hit sales hard.



gross profit is only down £3m.

‘Administrative expenses’ up £8m? Hmmmmm.

 

[bikeworkshop]

Ooo £8m bonus for the chief exec

 

[wynne]

Are they going to fold?