Reductions of up to 90% at Evans Cycles as it posts £22.8m losses

If you're in the market for a new bike, or indeed anything else cycling-related, you could do worse right now than heading to the Evans Cycles website. The Frasers Group retailer has posted a major sale with reductions of up to 90% on bikes and equipment.

It comes in the wake of the company's latest financial report which showed a pre-tax loss of £23.2 million in the financial year to April 2023, up from a loss of £5.3 million the year before. This decreased to £22.8 million post tax.

The largest savings to be found on its website are in clothing, with some active wear reduced by up to 90%, and even premium cycling jerseys down up to 80%. The Endura women's Pro SL Lite jersey, for example, which is reduced from £74.99 to £15.

There are some major reductions on premium bikes too, with the Cannondale SystemSix Hi Mod Ultegra Di2 reduced by £2,551 to £5,949, and the Trek Madone SL7 down £1,501 to £5,999.

Creditors owed within 12 months had increased to £145.2 million, up from £58.2 million the year before, according to Evans's statement of financial position.

Overall EBITDA, it says (that is, earnings before interest, tax, depreciation and amortisation), has fallen to a loss of £14.1 million from a loss of £4 million, with the company directors levelling the blame at ongoing supply issues.

An increase in company floor space had actually seen revenue increase from £45,348,000 to £45,800,000, according to the report, but 'administrative expenses' been a major contributor to the increase in losses.

"Management believes the company has performed strongly in the period, even with the well publicised supply chain issues with bicycles," the report stated.

The company's financial losses and the sale are part of what has been an ongoing saga throughout the cycling industry, with numerous suppliers and retailers having had to close their doors over the past few years.

Driven largely by the aforementioned supply chain issues, but not helped by Brexit, historic companies such as Moore Large have closed down, while highly regarded children's bikes manufacturer Islabikes announced it would wind down back in October.

In the same month retail giant Wiggle-CRC was forced to enter administration. It eventually found a home at Frasers Group, where it is now a stablemate of Evans Cycles.

There do not seem to be any major sales taking place on its website.

Companies across the industry have been urged to 'survive to 25', with analysts optimistic that supply issues will finally start to play themselves out next year, engendering a long-awaited pick-up for suppliers and retailers.