Brompton has partnered with capital investors BGF to confirm the folding bike manufacturer's first equity capital raise for 35 years, totalling £19 million of investment.
The move sees BGF, one of the UK and Ireland's "most experienced growth capital investors", with £3.5 billion invested in over 500 companies since 2011, take a minority stake "to support Brompton's ambition to create urban freedom for happier lives".
Speaking about the investment, Brompton CEO Will Butler-Adams said it is important the brand "moves faster" to help reduce carbon emissions in cities.
"Over the last two decades, Brompton has grown organically at circa 20 per cent a year, funded by reinvesting our profits," he explained. "For the year ended March 2023, turnover grew 21 per cent to £130m, supported by the launch of the Superlight T
Line and Electric P Line products.
"We export 80 per cent 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."
Adding to Butler-Adams' comments, Daina Spedding of BGF said they are "incredibly excited to be backing an iconic British brand that is rich in heritage and engineering prowess".
"From the outset, there has been a clear synergy between Brompton and BGF, with shared long-term goals and a focus on sustainable growth that is good for both people and planet," she said.
"We look forward to supporting the business as it continues to expand into new markets and invest in new technologies and manufacturing capabilities to meet ever-growing demand for its revolutionary cycling range."
In February, Butler-Adams bemoaned "bloody Brexit" among other challenges for the ongoing problems within the bike industry. Noting the hit on the company's pre-tax profit for the year ending March 2022, down 24 per cent to £7.3 million despite revenues
rising 40 per cent year-on-year, he put the fall down to wage inflation and a rise in the cost of materials.
https://road.cc/content/news/brompton-confirms-ps19-million-investment-301281
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