Brompton struggling

They still made a profit so not nearly as bad as it could be. Ok…4k profit,but it’s better than a loss

Hopefully they’ll be able to ride out the storm.

Very good.

It would be a shame if they folded

Didn’t they just build or start building a huge new factory with complicated planning issues? Not surprised their profit is low, that’s what happens when you invest a lot in one year.

That was my first thought, they built a massive factory recently, so might explain

Sales fell 5.3% to £122.6m as it sold 8.2% fewer bikes,

That's the source.  Plans to move to new headquarters 'on hold' - but I find it hard to believe they've not spent a fair bit already which probably contributed to to reduced profits.

this is feb 22 and they were supposedly sitting on £11m in cash and increasing the workforce -

https://www.theguardian.com/lifeandstyle/2022/feb/25/brompton-bikes-plans-100m-wetland-factory-on-stilts

I guess there will be a period of restructuring while they find a way to reduce size in a few easy moves, I see the banks have taken a stake to carry them in the short term.

And they’ve just introduced their first truly new bike for decades.  They almost certainly sunk a decent amount of cash into that too.

The ones they’ve recalled?

Yeah, that's a lot of capital to be paying off.

not a shock given how expensive they are

They are kind of a bit old fashioned now are they not? Ie most people who can be bothered biking on a thing like that will just be on e scooters

I’m always gobsmacked they have such a high turnover. Are they big globally?

And those new headquarters - seemed like a vanity project - there’s a reason production-line companies have big square boxes on non-descript business parks.

Niche but they have fans in the US, Japan and elsewhere.

I’d probably have bought another but my work C2W had stayed at £1000 which would only get a basic A-Line that’s worse than my old 2012 that I paid £700 for at the time.

Whilst they like to big up the cycling facility improvements on the big cities like London, the cycling facilities for the commute from my town into the metropolis of Derby are still utterly shite. It's blindingly obvious there's a need for a riverside cycle and walking path all th way down the side of the R Derwent.  But I'll be retired, or probably  old and dead, before that actually gets sorted.  So the car will continue to rule when the alternative is risking death on the A6.

I'm sure that sort of problem existing 10x in each medium sized town and small city in the country.

I hope they come through. From what I’ve seen they work hard at providing good jobs and a good product.

And those new headquarters – seemed like a vanity project

IIride/Orro moved into fancy custom built new premises just a year before going t1ts.

Hope  Brompton will survive, have a very devout following in metropolises around the world (Asia particularly) and make bikes that are truly great fun to ride and win folding reviews every year

Suspect they also have some sensible advisers who will keep them on the right track

They are kind of a bit old fashioned now are they not? Ie most people who can be bothered biking on a thing like that will just be on e scooters

In an age where you have to book a (conventional) bike on to a train a folder does make good sense for lots of commutes, less spacious homes and people who want something for local utility and leisure use, but part of the problem is that Brompton increasingly have competition. It's also worth noting that they do have some more affordable models like the bogo A-line (£1k). plus they're so well made (with spares available) that a fair chunk of their competition comes from their own products recirculating on the used market.

the New G-line is a wee bit pricey, but there is a leccy version too that is £3.5k which is arguably about on par price wise with other commuter E-bikes, I think they have a reasonable product line to fit the market, the trouble is that the idea that they're expensive and old fashioned is out there and doesn't help, they have competition that undercut them on price, and I think 2025 is going to be a year when budgets will be even more constrained. I'm not sure their marketing is quite doing the job currently.

They sold 85,000 bikes, 1600 per week. Anyone who uses a train will know their value (can be taken on any train at any time). I imagine many of those purchases will be repeats. The T-line was sold out for over a year, the G-line is still new (not a fan based on weight, but ride is good).

I imagine they’ve paid off debt so have no profits on reasonable margins. They have very little competition, although the key patents have expired so it’s time for innovation. The T- and G-lines are that innovation. The T-line is properly light enough to be carried from a platform (but not as light as a Hummingbird).

And I ride two of the competitors they killed off years ago (Tactic Panache and Mezzo), having sold my Brompton for half what I could have got for the same bike ten years later!