Brompton Bicycle has warned of another difficult year ahead after its pre-tax profits fell to just £4,602 in the 12 months to the end of March – a stunning fall from the £10.7m it made the previous year.
The company now finds itself recording a gross profit below the retail price of the T Line Explore 12 Speed foldable, which is listed at £4,749 on its website.
Annual sales were also hit, falling by 5.3 per cent to £122.6 million. Brompton sold 84,899 bicycles in 2024, down from 91,875 the previous year, a decline attributed to continued global economic uncertainty, swelling inventories in the bicycle industry, and increased staffing and marketing expenses.
Despite the difficult conditions, Brompton confirmed that exports accounted for 80 per cent of its turnover, up from 74 per cent in 2023. It also reported a significant swing towards its higher-margin T Line and P Line models, which helped offset some of the volatility. Lost revenue from lower total sales.
In early 2024, Brompton raised £19m from BGF, securing around 8 per cent of the company for the fund and valuing the business at £200m, including new investment. The additional capital was intended to support growth and a planned relocation from its existing facility in Greenford, west London, to a new high-rise factory in Kent, initially scheduled to open in 2027. Planning setbacks have delayed these ambitions, although the company It says the new site will help regenerate local wetlands and encourage more cycling and walking in Ashford.
Brompton reached a milestone last November with the production of its one millionth bike. Founded by Andrew Ritchie in 1975 while overlooking the Brompton Oratory in London, the company joins other British bike brands grappling with tougher trading conditions after the pandemic boom subsided, with notable collapses in the sector including Mercian and Orange Mountain Bikes.