Accell Group provides business update, withdraws dividend proposal

The Accell Group is withdrawing the dividend proposal 2019 of  €0.30 per ordinary share.

The dividend withdrawal is part of a package of managerial measures taken to ensure business continuity for the coming period. The delay in component delivery from Asia combined with the effect of lockdowns, resulting in bike shop closures and a drop in demand across Europe, has caused Accell to “proactively cut costs and manage for cash”, in order to partly offset the anticipated negative impact of the COVID-19 outbreak on its net turnover and profit in the first half of 2020.

“Typically, the first half-year is for Accell Group and for the European bicycle industry as a whole the most important part of the year,” said a statement. “As a consequence, we have now scaled down our bicycle production capacity with nearly 70%. So far, our parts and accessories business has not been affected.

“We have drawn €50 million under the existing accordion facility to our term loan (increasing it to €125 million). Given the exceptional circumstances, we are in close and constructive contact with our syndicate banks to keep them informed of the impact of the pandemic on our business and financial position. We also intend to make full use of the various Government relief measures in all relevant countries.”

Accell Group is proceeding with its Annual General Meeting on 22nd April 2020 as scheduled. However, in view of health and safety issues for everyone involved with the AGM and the ban on group gatherings as issued by the Dutch government, it is encouraging shareholders not to attend in person but to follow it through the live webcast and to exercise their voting rights by giving a proxy.

Further details can be found on the corporate website.