Group predicts organic turnover growth in H2 2012

High-end sports bikes and e-bikes drive Accell results

Accell Group is predicting higher turnover for the second half of 2012 and – for the full year – higher turnover compared with 2011.

Net operating income is expected to be lower in 2012 than in 2011 for the Dutch group, however, also predicting a decrease in net profit for the full year 2012 compared to 2011.

The owner of Raleigh, Haibike, Diamondback, Koga and Lapierre*, said that 2012’s improved weather means less stock will have to be sold at higher discounts.

“During the summer the weather conditions were better than last year in most countries in which Accell Group sells bicycles and bicycle parts," said Accell Group CEO René Takens. "This led to a continuation of first half year growth in almost all countries. We now also saw a slight growth in the Netherlands. Sales of bicycle parts and accessories have increased, both organically and through acquisitions.Turnover from the small scale fitness activities remained stable while the result improved due to cost savings.

"The integration of the acquisitions of Raleigh and Diamondback in April is at full speed. The synergy effects are yet limited, while there are (integration) costs and financing costs. Due to partial pass on of cost increases and acquisition effects the net operating result will, despite higher turnover in the second half of the year, not exceed that of 2011, which means that the decline in result we saw in the first half of the year will not be compensated by the second half of the year. For the longer term we expect a positive development of results.”

Operating costs are at a similar level compared to 2011, the group said.

Accell sounded a note of continued caution over Europe particularly, where predictions are hard to make accurately due to the troubled economic climate.

Electric bikes and sports bikes are performing particularly well for Accell, the group added: "The medium to long term outlook remains positive. There is a structural good demand for bicycles for mobility, health and physical exercise. In particular, this will continue to thrive sales of electric bikes and innovative sports bikes in the upper segment."

*Accell Group’s best known brands include Atala, Batavus, Diamondback, Ghost, Haibike, Hercules, Koga, Lapierre, Loekie, Raleigh, Redline, Sparta, Tunturi, Winora and XLC.

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