Later start to the season fails to scupper Accell Group's latest financials

Raleigh owner sees turnover and profit increase despite long winter

Accell Group has got off to a better start in 2013 compared to the same period in 2012, according to its latest financials.

While light on actual figures, the statement – covering the first months of the year – said turnover had risen. Some of that was down to the acquisition of Raleigh last year, but operational profit had risen due to organic growth as well, it said.

The news comes weeks after the firm revealed it would cut jobs in the Netherlands. Around 60 jobs will be lost there, due to a merger of the production for Batavus bikes (in Heerenvenn) and Sparta (formerly in Apeldoorn). Structural cost savings will be in the region of €2 to €3 million annually from 2014 onwards.

Accell is working on a wider integration of Raleigh. To that end it has acquired Raleigh’s distributor in Finland. Accell subsidiaries in the US – Raleigh America, SBS, Currie Technologies and Lapierre North America – will now cooperate closely for ‘more synergy and efficient benefits’. Also, manufacture and assembly in Cancada will cease at the end of the current season.

Chairman of Accell Group’s Board of Directors René Takens said: “The first months of the year have shown us that the general bicycle trends are still positive. However the long winter period and reluctance in willingness to buy among consumers has resulted in a late start of the bicycle season and lower than expected sales.

"There remains a lot of interest for electric bicycles, especially in Germany. Regarding the sports and traditional bicycles we expect to catch up on the lag in supply in the coming months. We therefore maintain our outlook for 2013 and expect a further increase in turnover and net operating profit, barring unforeseen circumstances.”

Accell employs 2,776 people worldwide across 18 countries.

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