Folding bike specialist Brompton’s desires to grow even faster than its 20% organic expansion in recent years has sparked a £19 million (A$25.51 million) capital injection for the UK company.
Growth capital investor BGF recently took a minority stake in the English manufacturer, securing £19 million in equity capital to further accelerate growth.
In an article in Cycling Industry News, Brompton CEO Will Butler-Adams says: “Over the last two decades, Brompton has grown organically at circa 20% a year, funded by reinvesting our profits.
“For the year ended March 2023, turnover grew 21% to £130m (A$242.94 million), supported by the launch of the Superlight T Line and Electric P Line products.
“We export 80% of our bikes to 46 countries and, in November 2022, made our one-millionth bike, a great achievement.
“But this is not enough, we need to move faster. The impact of climate change is being felt by us all and the greatest carbon emissions come from our cities where most of the world’s population now lives.
“Our team at Brompton are brimming with ideas to accelerate our growth through product innovation, storytelling, outstanding stores and having fun with our amazing community. But if we are really going to go for it, we need to strengthen our balance sheet to give us the confidence to be more ambitious.”
Orbea Achieved Growth Goal
Another rapidly growing manufacturer, Spanish brand Orbea, declared this month it has achieved its goal to expanded enough to be a key player in the international bike industry.
The company used its recent annual general assembly to highlight its growth figures, doubling its workforce in three years to a total 1,000 employees, including 80% based in Spain’s Basque Country.
Orbea has previously declared its objective to grow sufficiently large to be a major global player and become one of the most sought-after brands by cyclists worldwide.
It proclaimed at the general assembly “as of today we have reached those goals” and the company is now fast-tracking the recruitment of international talent.
Orbea recorded a 20% rise in profit after tax from 2021 to 2022, the seventh successive year it has achieved significant sales growth.
It achieved a turnover totalling €400 million (A$649.68 million) last year, with 85% of that figure generated through export markets.