High street cycling retailer Evans Cycles' annual accounts show a pre-tax loss of £5.2 million in the latest signal of challenging times for the bike industry.
The accounts for the year to April 2022 show greater losses in 2021-22 compared with the £2.7 million of the year before. Evans also reported a 50 per cent drop in revenue from £91.6 million to £45.3 million, the company suggesting this is related to a restructuring following its purchase by Mike Ashley's Frasers Group in 2018.
Last month, it was reported that Ashley, who previously owned Newcastle United, was close to adding ProBikeKit to the group's retail empire, the online cycling retailer likely to be handled through Frasers' Evans Cycles subsidiary.
Notes in the most recent accounts suggest Evans' online sales operation was only fully inegrated in 2021 and director Adedotun Adegoke explained that mean online sales went from being recognised in revenue to "the company receiving royalty income from other group entities for online sales under the company's brand name".
"Management believes the company has performed strongly in the period even with the well-publicised supply chain issues with bicycles," he added, acknoweldging the problems the bike industry has struggled with since the pandemic.
Evans' accounts show a cut to staffing numbers in the most recent financial year, from 829 to 490, aggregate remuneration dropping from £19.4 million to £9.3 million too. One thing that was on the rise, however, was store numbers, Evans increasing its offering from 48 to 57.
Overall, Frasers Group revenue was up 34 per cent from £2 billion to £2.6 billion in 2022 as it went from a £28 million loss to a £183 million profit.
2023 has been a troubling year for the bike industry as a whole, major UK-based distributor Moore Large entering liquidation in March before Livingston-based 2pure entered administration at the back end of last month.
In January, one of Evans' rivals, Halfords, suggested the cycling market was down 20 per cent year-on-year as the cost of living crisis hit consumers' appetite for high-ticket discretionary purchases.
Just last week, we reported that Yorkshire-based bike manufacturer Planet X was refusing to comment on administration rumours as a Notice of Intention to appoint an administrator was applied for by a director.
Come Friday evening however, the future of Planet X was "secured", and the jobs of all 33 employees saved, after it was sold to Winlong Garments Limited, funded by Baaj Capital LLP.
Dan joined road.cc in 2020, and spent most of his first year (hopefully) keeping you entertained on the live blog. At the start of 2022 he took on the role of news editor. Before joining road.cc, Dan wrote about various sports, including football and boxing for the Daily Express, and covered the weird and wonderful world of non-league football for The Non-League Paper. Part of the generation inspired by the 2012 Olympics, Dan has been 'enjoying' life on two wheels ever since and spends his weekends making bonk-induced trips to the petrol stations of the south of England.