Brompton secures £19 million investment and will use money to 'be more ambitious'
British folding bike company backed by investment from BGF
Brompton, the iconic British folding bike company, has secured £19 million in investment from BGF.
Announced on Tuesday morning, the deal sees BGF, formerly known as the Business Growth Fund, take a minority stake in Brompton. The press release states that the company will remain independent, however, "owned by the founder Andrew Ritchie, the current CEO Will Butler-Adams, their friends, family, and its staff".
Butler-Adams said that Brompton - which makes one of the best folding bikes on the market - needed to "strengthen our balance sheet to give us the confidence to be more ambitious".
“Over the last two decades, Brompton has grown organically at circa 20% a year, funded by reinvesting our profits," he said. "For the year ended March 2023, turnover grew 21% to £130m, supported by the launch of the Superlight T Line and Electric P Line products.
"We export 80% of our bikes to 46 countries, and in November 2022 made our one-millionth bike, a great achievement. But this is not enough, we need to move faster. The impact of climate change is being felt by us all and the greatest carbon emissions come from our cities where most of the world’s population now lives.
“Our team at Brompton are brimming with ideas to accelerate our growth through product innovation, storytelling, outstanding stores and having fun with our amazing community. But if we are really going to go for it, we need to strengthen our balance sheet to give us the confidence to be more ambitious.”
The bike manufacturer's accounts, published on Companies House earlier this year, show that turnover increased 40% to £106.9m ($128.7m) in the year up to 31 March 2022, up from £76.1m ($91.6m)
Get The Leadout Newsletter
The latest race content, interviews, features, reviews and expert buying guides, direct to your inbox!
However, pre-tax profits fell 28% to £7.1m ($8.5m) from £9.7m ($11.7m).
According to its report, this was down to a several factors, including a massive increase in funding for research and development, higher staffing costs, and rising costs associated with supply chain delays and manufacturing, as well as inflation.
Daina Spedding, an investor at BGF, said that there was "clear synergy" between her fund and Brompton.
“We are incredibly excited to be backing an iconic British brand that is rich in heritage and engineering prowess, with an outstanding track record of profitable, global growth," she said. "From the outset, there has been a clear synergy between Brompton and BGF, with shared long-term goals and a focus on sustainable growth that is good for both people and planet.
"We look forward to supporting the business as it continues to expand into new markets and invest in new technologies and manufacturing capabilities to meet ever-growing demand for its revolutionary cycling range.”
Thank you for reading 20 articles this month* Join now for unlimited access
Enjoy your first month for just £1 / $1 / €1
*Read 5 free articles per month without a subscription
Join now for unlimited access
Try first month for just £1 / $1 / €1
Adam is Cycling Weekly’s news editor – his greatest love is road racing but as long as he is cycling, he's happy. Before joining CW in 2021 he spent two years writing for Procycling. He's usually out and about on the roads of Bristol and its surrounds.
Before cycling took over his professional life, he covered ecclesiastical matters at the world’s largest Anglican newspaper and politics at Business Insider. Don't ask how that is related to riding bikes.
-
Forget distance covered, these are the key stats to note in your Strava Year in Sport
We asked a coach how to best analyse our end of year Strava data
By Tom Davidson Published
-
'She should show a bit more respect' - Lotte Kopecky responds to Demi Vollering comments
The pair seemingly had one last fractious year together at SD Worx-Protime in 2024
By Tom Davidson Published
-
'There are simple remedies in order to be inclusive': Paralympian says cycling still has work to do in order to improve on diversity and inclusion
Blaine Hunt says inclusion issues for Paralympians far greater than athletes being asked to wear tracksuits on a recent visit to Buckingham Palace to meet King Charles
By Tom Thewlis Published
-
Brompton recalls its T-Line folding bikes in North America due to steering loss
British bicycle manufacturer Brompton is recalling its T-Line folding bike model from the North American market following incidents where riders lost steering control.
By Anne-Marije Rook Published
-
Brompton CEO Q&A: 'People see us as a little, quirky, odd bike'
Will Butler-Adams tells Cycling Weekly about his first steps in cycling, his admiration for Elon Musk, and what to expect from Brompton in 2024
By Tom Davidson Published
-
‘Our industry ought to be the sustainability leader, and yet it’s not,’ says Brompton CEO
Will Butler-Adams calls on bike industry to reduce waste and rethink materials
By Tom Davidson Published
-
The world's most expensive folding bike? Bidding for 'oldest' Brompton starts at £25,000
The 42-year-old model is believed to be the "oldest badged Brompton" and is still in good nick
By Adam Becket Published
-
Brompton profit falls as turnover rises on high demand in post-pandemic world
The British folding bike company is selling more bikes than ever around the world
By Adam Becket Published
-
879 miles and 83 hours on a folding bike: London cyclist completes Lands End to John O'Groats on a Brompton
James Stannard completed 1,415 kilometre route on folding Brompton bike without support
By Tom Thewlis Published