Lengthy-standing British motorcycle producer Raleigh has posted losses of greater than £30 million.
The Nottingham-based logo has printed in newly launched corporate accounts that its losses deepened fourfold yr on yr, from £6,826,000 in 2022 to £30,146,000 in 2023. The trade used to be winning in 2021.
Raleigh’s managing director, Chris Slater, stated the corporate were suffering from overstocking around the trade, however is in a “strong position”, regardless of the losses.
“The uplift in the market driven by Covid has seen some contraction and volumes have returned to pre-Covid levels,” Slater stated in an accompanying word, 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 greater via 3.4% within the reporting duration, up from £55.7 million to £57.7 million. The corporate’s internet running bills, alternatively, totalled £84.4 million, made up most commonly of gross sales and administrative prices.
On the finish of 2023, Raleigh used to be “right sized” as a part of a trade evaluate via its mother or father corporate, the Accell Crew. This integrated task cuts, shutting down the logo’s portions and equipment trade, and shutting its warehouse operations, partnering as a substitute with an exterior supplier.
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Raleigh’s newest corporate accounts display its group of workers 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 word.
“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.”
Based in 1887, Raleigh used to be got in 2012 via the Netherlands-based Accell Crew, whose different manufacturers come with Haibike, Lapierre and Babboe.
Accell Crew’s pre-tax losses amounted to €416,553,000 (£346,673,878) for 2023. This used to be a stark decline at the corporate’s efficiency in 2022, when it posted a €45,174,000 (£37,687,087) benefit.
A document from the control board stated “difficult market circumstances” had impacted the trade.
“The bicycle industry is currently undergoing a transformation and is facing ongoing challenges,” the board stated. It went directly to cite “increased pressure on costs and supply chains” amongst its exams, in addition to “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.”
