News Article

Accell Adjusts 2007 Profit Forecast

Home

HEERENVEEN, the Netherlands – The earlier expected 35% increase in 2007 net profit has been adjusted to 25% – 35% today by Accell Group. Earlier this year, at the presentation of the financial results for the first half of 2007, Accell Group still expected the full-year to show: a further increase in turnover and a rise in net profit from ordinary operations of approximately 35%. The value of Accell Group shares at Euronext dropped

HEERENVEEN, the Netherlands – The earlier expected 35% increase in 2007 net profit has been adjusted to 25% – 35% today by Accell Group. Earlier this year, at the presentation of the financial results for the first half of 2007, Accell Group still expected the full-year to show: “a further increase in turnover and a rise in net profit from ordinary operations of approximately 35%.”

The value of Accell Group shares at Euronext dropped  considerably in the last two weeks. The negative trading conditions on the global stock markets, together with the adjusted profit forecast for 2007 pushed down Accell’s current share value to under € 27. Last July the shares reached a 52-week-high of € 38.25.

“The full-year result is influenced by strongly changing weather conditions”, commented Accell Group CEO René Takens. “Dealers’ sales were lower during the summer months, due to the wet weather, particularly in the Netherlands. The availability of bicycles from the new model year is affected by delayed deliveries from Shimano and a number of larger frame suppliers.”

“The new collections for the coming season have been well received and the order portfolio is also well filled. Based on the expected and largely organic operational profit increase of 25%-35%, 2007 will be another successful year for Accell.”

The profit forecast does not include the provision announced with the first-half results, which was taken as a result of the court ruling relating to the NMa fine. Meanwhile, an appeal has been lodged against this court ruling, as Accell Group believes it has not committed any violations and finds the € 4.6 million fine from the Dutch competition authority incorrect and excessive.

Comment on this article