Brompton boss Will Butler-Adams blamed a ‘really sad state of affairs’ in the global bicycle market as the wheels came off sales.
Profits for the year to the end of last March were just £4,602 compared to £10.7million a year earlier.
Demand surged in the pandemic, but producers overestimated how long the boom would last, and now have unwanted goods on their hands.
Sales at Brompton, which makes folding bicycles popular with many commuters, fell 5 per cent to £122.6million, according to accounts.
Excess stock: Brompton’s profits for the year to the end of last March were just £4,602 compared to £10.7m a year earlier
Costs surged 15 per cent to £62.7million amid increased staff and marketing spending to meet expected growth, which failed to appear.
It was also hurt by higher raw materials and logistics costs. As a result, Brompton axed dividend payments.
Butler-Adams told The Guardian: ‘The industry is still in turmoil and will not get better this year. It will not be as bad as 2024 but there is still excess stock.’
UK sales dropped nearly £2million to £31.7million. In Europe they fell 21 per cent to £24.6million.
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