Accell Group Books Rising Results For 2007

HEERENVEEN, the Netherlands – Nice weather conditions and growing e-Bikes sales have pushed up Accell Group’s turnover in 2007. Despite an earlier publication that 2007 would be less profitable than expected Accell Group today announced an increase in profit by 33% to € 24.4 million. The turnover went up with 10.3% to € 476.1 million.

René Takens, Chairman of the Accell Group Executive Board: “Last year was very successful for us. The operating margin increased as a result of the extra bicycle sales and the positive product mix. We are also pleased that we could announce the acquisition of Ghost in Germany earlier this week. This top brand in Germany will make a considerable contribution to our further growth in the German market.”

Positive Outlook for 2008

“Deliveries from a number of Accell companies were delayed in the second half of the year due to too late delivery of parts. This situation is almost resolved at this point. The outlook for 2008 is also positive for Accell Group and, barring unforeseen circumstances, we expect further growth in turnover and net profit from ordinary operations.”

The turnover in the bicycle / bicycle parts & accessories segment increased by 11.5% to € 431.5 million, compared to € 386.9 million in 2006. This increase was driven primarily by the continuing strong demand for electric bikes and an increase in sales in Germany and France. In addition, Accell Group acquired the Belgium trading company Brasseur in the first quarter of 2007. The increase in operating activities and the acquisition of Brasseur boosted the balance sheet total to € 277.6 million, compared with € 245.6 million in 2006.

943,000 Bikes Sold

The number of bicycles sold increased to 3% to 943,000 in 2007, from 917,000 in 2006. The average bicycle sales price also increased, to € 367, from € 339 in 2006. The result from ordinary operations in this segment came in at € 48.6 million, compared with € 36.9 million in 2006.

The Dutch bicycle brands Batavus, Koga and Sparta benefited from the exceptionally good cycling weather in the first half of 2007. “And while in the fall of 2007 the weather was disappointing and we had to deal with too late delivery of components, the company booked organic profit growth of 5% in the final six months of the year with the company’s order portfolio at a record level by the beginning of 2008”, explains Takens.

German Market Favourably

Turnover at Winora and Hercules in Germany was up in the past year largely as a result of sound market developments and Winora’s custom-made programme. Wiener Bike Parts’ growth in sales of parts and accessories were very sound in both Germany and France. “Currently, the German market for bicycles is developing favourably”, according to Takens.

Velib Brings € 6 Million

Accell Group reports a positive year in France with its international top brand Lapierre. Mercier’s production activities were integrated with those of Lapierre in 2007. Under Lapierre’s responsibility, bicycles are being produced in France and Hungary for JC Decaux, which is developing bicycle projects to improve mobility in major French cities. The major project for public bicycles in Paris (Vélib’) generated a great deal of publicity and brought Accell Group additional turnover of around € 6 million.

Seattle Bike Supply (SBS) in the United States booked a further increase in turnover. In 2007, the company kicked off the distribution of Batavus bikes via the SBS network. The SBS dealer network had already started distributing Lapierre bicycles in North America. Exports of the SBS brand Redline (BMX bikes) to Europe are also progressing steadily, largely as a result of the cooperation with Batavus, the expansion of the sponsoring of national teams and international cyclists and the BMX tournament at this year’s Olympic Games in Beijing.

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