Brompton going tits up?

[Canuk]

Are they going to fold?

Bent double at that one

 

[wynne]

My pleasure!

 

[bontybonty]

Th point of running a company is to take profit. No profit no company.

 

[d8mok]

Th point of running a company is to take profit. No profit no company.

Not exactly true.

 

[bikeworkshop]

If it's your own business, your just trying to make a living. (i know this)

If you've got shareholders and you break even, they will want to sell up and move elsewhere.
Then your capital evaporates so you have to borrow at a higher %

Pooof

 

[paton]

They had some ambitious plans.....
https://www.ashford.gov.uk/news/lat...-revolutionary-bicycle-factory-of-the-future/

https://www.kentonline.co.uk/ashfor...-100m-boost-to-towns-economy-has-been-301092/

https://www.bgf.co.uk/insights/brompton-bicycle-investment/

https://www.kentonline.co.uk/ashfor...ory-faces-more-delays-due-to-weak-eco-309732/

 

[paton]

Despite what they were saying 8 years ago.....

 

[bontybonty]

Just one guy can trade year on year for a wage and this can be considered success
I ran a small firm like this most of my working life. A break even or loss year in tough times can also be considered success.
The problem arises when a vanishing point comes into view. At any level ultimate failure has to be avoided.
The phrase fail fast holds true.
If Brompton does fail it will likely restart
from administration the next day

 

[d8mok]

As Russell said above. There is more to these numbers than a 99% fall in profit when the rest isn't much different. Someone far smarter than me obviously has a plan.

 

[bontybonty]

The mention of £19 million in venture capital may explain issues. Classic path is to regain your stake plus a hefty return by loading up with debt and lease back deals. Interest and leases then pull the fim over