Long-established British bicycle manufacturer Raleigh has posted a loss of more than £30 million.
The Nottingham-based brand revealed in its latest company accounts that its losses had quadrupled year-on-year, from £6,826,000 in 2022 to £30,146,000 in 2023. The business became profitable in 2021.
Raleigh managing director Chris Slater said the company had been affected by excess inventory across the industry but was in a “strong position” despite the losses.
“The COVID-19-driven market rally has seen some contraction, with volumes returning to pre-COVID levels,” Slater said in an accompanying report on Dec. 19, 2024.
“This has resulted in excess inventory in the market and we are experiencing price pressure in the market.”
During the reporting period, Raleigh’s turnover increased by 3.4%, from £55.7 million to £57.7 million. However, the company’s net operating expenses totaled £84.4m, consisting mainly of selling and administrative costs.
Raleigh was deemed “right-sized” in late 2023 as part of a review of parent company Accell Group’s business. This includes job cuts, the closure of the brand’s parts and accessories operations and the closure of its warehouse operations in favor of working with external suppliers.
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Raleigh’s latest company accounts show that its staff will fall from 163 to 130 by 2023.
“These changes position the company well when markets return to a more normal and stable state,” Slater wrote in the note.
“The directors expect the market to continue to be very competitive in the coming year. Raleigh maintains a strong competitive position through considerable brand strength, a network of independent bicycle dealers and a strong presence on the high street.”
Founded in 1887, Raleigh was acquired by the Dutch Accell Group in 2012, whose other brands include Haibike, Lapierre and Babboe.
Accell Group’s pre-tax loss in 2023 amounted to €416,553,000 (£346,673,878). This is a significant decline from the company’s results in 2022, when it reported a profit of €45,174,000 (£37,687,087).
A report from the management board said “difficult market conditions” were affecting business.
“The bicycle industry is currently undergoing a transformation and faces ongoing challenges,” the board said. It went on to cite “increased cost and supply chain pressures” as well as “high inflation and inventory levels” in the test.
“In the short term, the market outlook continues to be affected by high inventories across the industry and distribution channels,” the board added. “Liquidity will remain a key focus for the company.”
