Accell Group Expects Further Growth in 2010

HEERENVEEN, the Netherlands – During last week’s annual general shareholders meeting, Accell Group announced that further growth in turnover and profit is expected for 2010. Accell Group therefore maintains its previous outlook and stated: “Sustained interest in recreation, mobility, health and the environment will continue to stimulate the use of bicycles.”

René Takens, Chairman of the Board of Directors of Accell Group said: “After a relatively long winter, we saw bicycle sales picking up again as from the middle of March. Turnover is currently at the same level as last year.” Last year the bike holding company registered a total turnover of € 572.6 million. Earnings were 6% up (5% organic growth) compared to 2008.

Accell CEO Takens further stated in his trading update for the shareholders meeting: “The bicycle is popular and the consumer likes to invest in a product that brings joy, is healthy and offers easy and affordable mobility, particularly in urban areas.” In 2009 Accell Group saw its bicycle sale grow with 7% to a total turnover of € 433.5 million. 986,000 bikes were sold compared to 974,000 in 2008.

According to Takens, last year’s bleeder for Accell Group, its fitness division, is recovering from a 25% drop in turnover to close to € 30 million and a loss of € 2.5 million. He said: “The turnover of our fitness products has risen compared to last year. Therefore, we appear to have seen the worst for this segment.”

The Amsterdam stock market-listed company saw its 2009 profit grow with a big 15% to € 32.7 million. On his expectations for this year Takens said: “We maintain our expectation that for the full year 2010, turnover and result will increase, barring unforeseen circumstances.”

Accell’s trading update further noted: “Consumers were particularly interested in electric and sports bicycles. The trends that we saw in the bicycle segment in the last few years are therefore continuing unabated. The turnover in the bicycle parts & accessories segment increased compared to last year. Both the proprietary brand XLC and the extension of the portfolio with high-end brands have contributed to this.”