Long-standing British bike manufacturer Raleigh has posted losses of more than £30 million.
The Nottingham-based brand has revealed in newly released company accounts that its losses deepened fourfold year on year, from £6,826,000 in 2022 to £30,146,000 in 2023. The business was profitable in 2021.
Raleigh’s managing director, Chris Slater, said the company had been affected by overstocking across the industry, but is in a “strong position”, despite the losses.
“The uplift in the market driven by Covid has seen some contraction and volumes have returned to pre-Covid levels,” Slater said in an accompanying note, dated 19 December 2024.
“This has left the market in an overstocked position and we have experienced price pressures in the market place.”
Raleigh’s turnover increased by 3.4% in the reporting period, up from £55.7 million to £57.7 million. The company's net operating expenses, however, totalled £84.4 million, made up mostly of sales and administrative costs.
At the end of 2023, Raleigh was “right sized” as part of a business review by its parent company, the Accell Group. This included job cuts, shutting down the brand’s parts and accessories business, and closing its warehouse operations, partnering instead with an external provider.
Raleigh’s latest company accounts show its staff headcount fell from 163 to 130 in 2023.
“These changes have left the company in a strong position when the market returns to a more normal and stable state,” Slater wrote in his note.
“The directors anticipate that the market place will continue to be very competitive during the coming year. Raleigh retains a solid competitive position with considerable brand strength, an independent bicycle dealer network and a strong presence on the High Street.”
Founded in 1887, Raleigh was acquired in 2012 by the Netherlands-based Accell Group, whose other brands include Haibike, Lapierre and Babboe.
Accell Group’s pre-tax losses amounted to €416,553,000 (£346,673,878) for 2023. This was a stark decline on the company’s performance in 2022, when it posted a €45,174,000 (£37,687,087) profit.
A report from the management board said “difficult market circumstances” had impacted the business.
“The bicycle industry is currently undergoing a transformation and is facing ongoing challenges,” the board said. It went on to cite “increased pressure on costs and supply chains” among its tests, as well as “high inflation and inventory levels”.
“In the short term the market outlook continues to be impacted by a high level of inventories across the industry and distribution channels,” the board added. “Liquidity will remain a key focus of the company.”
