Company Faces Ongoing Struggles as Rival Discounting and Overproduction Weigh on Market

Brompton Bicycle, the renowned British manufacturer of folding bikes, has seen its profits plummet by over 99%, with the company predicting further difficulties in 2025 for the bike industry. The significant drop in earnings follows a period of intense price-cutting by competitors, leading to widespread discounting and excess stock.

For the financial year ending in March 2024, Brompton’s profits fell from £10.7 million to just £4,602, a figure lower than the cost of its premium T Line Explore model. The company experienced a 5.3% drop in sales, amounting to £122.6 million, as demand for its high-end bikes decreased during the ongoing cost-of-living crisis. The number of bikes sold also fell by 8.2%.

Will Butler-Adams, Brompton’s managing director, attributed the profit decline to a struggling global bicycle market, highlighting the oversupply of bikes following inflated demand during the Covid-19 lockdowns. “The industry remains in turmoil and won’t recover this year. Although it may not be as severe as 2024, there is still too much stock,” said Butler-Adams.

The global bicycle market, particularly in Europe and the US, has been impacted by poor sales and the need for significant discounts as manufacturers and retailers attempt to reduce surplus inventory. Several bike brands and retailers, including UK-based companies such as Mercian and Orange Mountain Bikes, have gone out of business in the last two years.

Brompton, in particular, has been affected by aggressive price cuts from struggling competitors, along with increased competition from electric bike rental schemes like Lime and more affordable Chinese alternatives. In the UK, the bike retail sector has been further squeezed by the closure of independent chains such as Cycle Republic and Cycle Surgery, with larger retailers like Evans also scaling back.

In response to these challenges, Brompton has paused its plans to relocate to a new headquarters in Ashford, Kent, and cancelled its annual dividend after a £1.2 million payout the previous year. In early 2024, the company secured £16 million in funding from BGF, a bank-backed investment firm, which now holds an 8.5% stake in Brompton.

Despite these hurdles, Butler-Adams remains confident in Brompton’s future, citing its focus on practical, commuter-friendly bicycles as a key advantage. He is optimistic about the long-term outlook for the bike industry, as cities worldwide, including London, New York, and Paris, invest in cycling infrastructure to promote public health and environmental sustainability.

“The momentum for cycling is growing globally,” he explained. “Though the industry has faced setbacks, governments are pushing for more active transport, which will eventually benefit the sector.” Looking ahead, Brompton is excited about its new G Line model, particularly the electric version, seeing it as an opportunity to invest and innovate during a challenging period.