Brompton boss Will Butler-Adams blamed a ‘really sad state of affairs’ in the global bicycle market when the wheels were withdrawn.
Profits for the year to the end of March were just £4,602, compared with £10.7 million a year earlier.
Demand surged during the pandemic, but manufacturers overestimated how long the boom would last and are now left with unwanted goods.
Sales at Brompton, where folding bikes are popular with many commuters, fell 5 percent to £122.6 million, according to the accounts.
Excess stock: Brompton’s profit for the year to the end of March was just £4,602, compared to £10.7m a year earlier
Costs rose 15 percent to £62.7 million, due to higher staff and marketing spend to meet expected growth, which did not materialise.
It was also hit by higher raw material and logistics costs. As a result, Brompton canceled dividend payments.
Butler-Adams told The Guardian: “The sector is still in turmoil and will not improve this year. It won’t be as bad as in 2024, but there is still a surplus.’
UK sales fell by almost £2 million to £31.7 million. In Europe they fell 21 percent to £24.6 million.
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