Brompton’s annual bike sales fell to their lowest level since 2021, as the bike industry continues to face difficulties.
The sales fell by 7.5% to 78,530 bicycles in the year to March 31, compared with 84,899 the previous year.
However, the folding bike company reports a sharp rise of 2,735% in pre-tax profit, according to results seen by the Financial Times.
This increase, from £4,602 in 2024 to £130,500, is due to the sale of higher-priced models and a thriving subscription service.
The G Line off-road bike, launched in October 2024 and priced at £2,599, accounted for nearly 10% of annual turnover.
Sales of the G Line bike are expected to grow even further with its launch in Asia.
> Review: Brompton G Line with Roller Frame 8-speed
The bike subscription service, which allows cyclists to rent a Brompton for £35 per month, also grew by 45% during the year.
Chief executive, Will Butler-Adams, said there were “ongoing challenges” in the sector.
“Exactly where we don’t quite know, but we’re going to be up both in turnover and profit. Having had three years of tough trading, we’re beginning to see a recovery.”
Revenues fell by less than 1% to £121.5m.
Further growth is also expected as the new electric “e-Motiq” range debuted in Europe this October, with prices starting from £2,999.
“Ongoing challenges in the industry are causing many dealers to hesitate when it comes to making further investments in stock, which has a knock-on impact on our individual bike unit sales,” said Butler-Adams.
He added that direct sales to consumers was growing, and that insolvencies could help them survive, as “we’ve cleaned out 30 per cent of the people making bikes.”
He also warned the UK government not to “stifle” growth, as last year’s minimum wage and national insurance contribution increases cost the company £2m and led to 40 job losses.
16 thoughts on “Brompton reports lowest annual sales since 2021 as CEO warns government not to “stifle” growth”
Some very stupid usage of
Some very stupid usage of percentages there.
0.1% profit margin is pretty sucky no matter how you look at it. (130k / 120m)
“Pre-tax profits grew by -100
“Pre-tax profits grew by -100,100% from -£1 to £1,000”
Essentially, they broke even.
Essentially, they broke even. Which is far better than much of the global bike industry post Covid
At least Brompton is making a
At least Brompton is making a profit. So many other bicycle makers aren’t. I must say that the G-line is a good idea, though my nephew (who works at Brompton) says they are heavy.
130k of profit vs 120m of
130k of profit vs 120m of revenue is actually a terrible result. Still, it gives them some space to survive until next year.
Let’s hope they do recover. Personally I couldn’t be further from their target user, but they do deserve credit for genuine innovation and out-of-the-box (wordplay absolutely intended) thinking.
It represents a turn from
It represents a turn from several bad years. And a large part of global bike industry would love to break even
Revenue was only 1% down on
Revenue was only 1% down on the previous year – with a small increase in profit.
What’s unclear is the impact on financials of brompton’s new £100m Eco HQ / Factory in Ashford / Kent.
“we’ve cleaned out 30 per
“we’ve cleaned out 30 per cent of the people making bikes.” – meaning?
I have tried to find a cheaper well-made alternative, but there seems to be much less choice now.
Also, many hundreds – or thousands? – of people bought bikes during the Covid lockdowns and in the year or two after, bikes which are well made and will not need to be replaced for many years. How close to saturation is the British market?
Is the market driven by
Is the market driven by people wanting another shiny toy or by people who currently don’t have a bike at all?
Like so much of modern manufacturing there is overcapacity pandering to the consumer market.
And both completely
And both completely irrelevant to the point on Brompton financial results. People might have a couple of BSO’s in the shed unlikely to have multiple Brommy’s.
I was referring to Tim’s
I was referring to Tim’s saturation comment.
Are Bromptons sold to those with proper bikes (as an N+1) who see the benefits of a (good) folder or those who don’t own bike but think that a folder might be a good solution to their commute? Are the latter more likely to buy a cheap clone to test the water? Likewise are most BSO owners going to spend thousands or hundreds on the clone, if they see tne light? Which any way it’s a niche market with low opportunity for repeat business.
I suppose one challenge that
I suppose one challenge that Brompton have is that people only buy one… they’re well made and very reliable, so apart from the (mostly proprietary) spare parts and accessories, repeat business is low.
mark1a wrote:
Plus they don’t have the upgrade temptations of other manufacturers, there are small differences in gearing and weight but effectively it’s much the same bike across the range, people aren’t going to be hankering after the next model up the same way, say, an Allez owner hankers after a Tarmac.
I think you’re both right on
I think you’re both right on this. If I’d known when I bought my C-Line how useful it was going to be (beyond just for the multi-modal commute I had in mind) I might have plumped for the lighter model – but I’m unlikely to trade in to achieve that now. OTOH, when I owned an Allez, I didn’t actually want a Tarmac as they looked too similar.
The only thing stopping me
The only thing stopping me from owning another Brompton, is insufficient disposable income.
Thankfully the 6 speed is pretty capable & tucks away great at work.
But that G Line, I definitely would if I didn’t have kids, pets and bills ?
Or are a lot of Bromptons
Or are a lot of Bromptons gathering dust behind the sofa like ours? My wife bought it to commute to the station and from the station at the other end to her office, but finds it far to heavy to be easily portable. Once folded up it doesn’t roll easily – like a heavy suitcase with wheels does – and she found it a total pain to manage. In my view, complacency and a lack of focus on portability have really limited their usefulness to half the population. I rarely see women riding them.