BikeBiz Bicycle and cycling retail news
As increasing reports of Cotswold Outdoor owner PAI Partners circling Evans Cycles for a potential acquisition hit the headlines, the nationwide cycle retailer has posted a strong set of financials for 2014.
For the year period up until November 1st 2014, operating profit hit £4.4m – an increase of 70 per cent on the previous year (£2.6m) thanks to "increased sales and excellent cost control."
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) was £7.5m versus £5.7m in the previous year, representing a 32 per cent increase.
Five new stores were opened during the period (Plymouth, Preston, Maidstone, Chelmsford and Maidenhead) bringing the nationwide total to 52 (47 in 2013). That increase in store numbers coupled with growth in existing stores and the website saw 11.9 per cent turnover increase versus the year before.
Evans employees numbers grew to 1,179 from 1,116 and the Company’s net assets were £10m as of 1st Nov (£6.8m in 2013).
After paying tribute to long term relationships with key suppliers, Evans Cycles had this to say on outlook: "The main risks and uncertainties faced by the business relate to the wider UK economic climate and the strength of the cycling market in particular. The Directors do not believe that either of these factors are a significant risk to the performance of the Company for the foreseeable future."
Evans gave BikeBiz a statement on any potential takeovers at the end of last year.
