Brompton profits plunge 99% in ‘tough year’
Brompton confirmed that as of 31 March 2024, it had net assets of £65.1m, up from £49.4m the previous year, primarily due to a cash injection from an equity fundraise in May of 2023
Brompton has revealed its profits plunged 99% to just £4,602 in what its managing director called a “tough year” in a sector that is battling excess stock.
According to its most recent accounts filed with Companies House, it comes as sales fell 5.2% to 5.3% to £122.6m as it sold 8.2% fewer bikes than it did the year before.
The foldable bicycle manufacturer also saw higher operating costs, which increased 15% to almost £63m related to staff and marketing costs.
Brompton confirmed that as of 31 March 2024, it had net assets of £65.1m, up from £49.4m the previous year, primarily due to a cash injection from an equity fundraise in May of 2023.
Speaking to The Guardian, Brompton MD Will Butler-Adams warned that the sector is unlikely to recover in 2025 and will continue to face the problem of excess stock.
He said: “The industry is still in turmoil and will not get better this year. It will not be as bad as 2024 but there is still excess stock.”
