Long-standing British bicycle manufacturer Raleigh has announced a significant £30 million loss for 2023, marking a stark contrast to its previous profitability in 2021.
The Nottingham-based company, in newly released financial reports, revealed that its losses had deepened dramatically, soaring from £6.8 million in 2022 to £30.1 million in 2023. Despite this downturn, Raleigh’s turnover saw a modest increase, rising by 3.4% from £55.7 million to £57.7 million.
Raleigh’s Managing Director, Chris Slater, attributed the loss to a combination of factors, particularly an overstocked market and ongoing price pressures. “The surge in demand driven by the COVID-19 pandemic has now subsided, and the market has returned to pre-pandemic levels,” Slater explained in a note accompanying the company’s financial statements, dated December 19, 2024. “This has led to significant overstocking in the industry and subsequent price pressures.”
Despite the financial setbacks, Slater remained optimistic about Raleigh’s future, emphasizing that the company is “in a strong position” moving forward. He noted that the restructuring efforts undertaken by Raleigh’s parent company, Accell Group, had better positioned the company to weather future market conditions.
As part of a strategic business review, Raleigh has undergone significant restructuring, including job cuts and the closure of its parts and accessories division. Additionally, the company outsourced its warehouse operations to external providers. This restructuring resulted in a reduction of Raleigh’s workforce, with the headcount dropping from 163 employees to 130 by the end of 2023.
Raleigh’s cost of operations, including sales and administrative expenses, amounted to £84.4 million in 2023. Although turnover increased, the company’s operating expenses significantly outpaced revenue, contributing to the loss.
Looking ahead, Slater expressed confidence that Raleigh remains well-positioned in a competitive market. “The directors anticipate that the market will continue to be highly competitive in the coming year. However, Raleigh retains strong brand equity, an independent dealer network, and a solid presence on the High Street,” he said.
Founded in 1887, Raleigh was acquired in 2012 by the Netherlands-based Accell Group, which also owns other prominent bicycle brands such as Haibike, Lapierre, and Babboe. The Accell Group itself reported a staggering €416.6 million (£346.7 million) pre-tax loss for 2023, a sharp decline from the €45.2 million (£37.7 million) profit it posted in the previous year.
Accell’s management attributed the group’s poor performance to “difficult market circumstances,” including high inflation, inventory backlogs, and pressure on costs and supply chains. In a report, the company noted that the bicycle industry is undergoing a major transformation and faces significant challenges. “The market outlook remains affected by high levels of inventory across the industry, and liquidity will continue to be a key focus for the company,” the board said.
As Raleigh and its parent company look to navigate these turbulent industry conditions, the future remains uncertain, but both remain committed to adapting to a rapidly changing marketplace.
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