Beloved British bike maker reports £30m loss
Turbulent industry conditions push Raleigh deep into the red
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.
Get The Leadout Newsletter
The latest race content, interviews, features, reviews and expert buying guides, direct to your inbox!
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.”
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
Tom joined Cycling Weekly as a news and features writer in the summer of 2022, having previously contributed as a freelancer. He is fluent in French and Spanish, and holds a master's degree in International Journalism, which he passed with distinction. Since 2020, he has been the host of The TT Podcast, offering race analysis and rider interviews.
An enthusiastic cyclist himself, Tom likes it most when the road goes uphill, and actively seeks out double-figure gradients on his rides. His best result is 28th in a hill-climb competition, albeit out of 40 entrants.
You must confirm your public display name before commenting
Please logout and then login again, you will then be prompted to enter your display name.
-
Visma-Lease a Bike are producing their own kit under Yellow B logo
Dutch team’s deal with Agu ended in December after brand experienced financial difficulty
By Tom Thewlis Published
-
Former American cycling star vows to 'reinvigorate' US road racing with $156,000 Growler race prize pot
Keegan Swenson and Lauren De Crescenzo return to defend titles in second edition of Levi Leipheimer's event
By James Shrubsall Published
-
Brompton profits plummet from £10.7m to £4,600 as industry 'turmoil' continues
Folding bike company sold fewer bikes than expected in 'challenging year'
By Tom Davidson Published
-
'It's a dog-eat-dog world': Inside the British racing scene's fight for sponsors
How much money do teams need? How do they find sponsors? And is it really tougher today than before? We asked those who are always on the hunt
By Tom Davidson Published
-
'A herculean task' - Paddy McGuinness completes 300-mile Raleigh Chopper ride, raising over £7m for charity
'Every morning when I woke up, everything was aching,' says TV presenter after five-day challenge
By Tom Davidson Published
-
Bike subscription business to close due to 'escalating costs'
Buzzbike has operated in Manchester and London since 2016, but will halt its fleet this week
By Tom Davidson Published
-
'Decline in cycling' cited as Halfords profits fall
Store chain sees profits drop 25% year-on-year
By Tom Davidson Published
-
'The first 30 miles were just crazy' - Paddy McGuinness on first day of ultra cycling challenge aboard Raleigh chopper
TV and radio personality completed Peak District training session with Sir Chris Hoy before setting off on mammoth charity ride for BBC Children in Need
By Tom Thewlis Last updated
-
Rapha focused on increasing 'profitability and resilience' as losses deepen by over £10 million, meaning seven years in the red
The British brand have not posted a pre-tax profit since 2017
By Adam Becket Published
-
To the Chopper - Paddy McGuinness to ride custom Raleigh in ultra-endurance cycling challenge
Television presenter set to ride 300 miles for BBC Children in Need 2024
By Tom Thewlis Published