Evans Cycles’ full-year revenue rose but its pre-tax profits took a hit as the bikes specialist continued to invest in its website and stores.
Pre-tax profit fell 5% to £893,000 in the year to October 29, down from £941,000 in 2010 and £4m in 2009, as it invested in its supply chain network, stores and staff.
However, EBITDA surged 29% to £4.1m last year while turnover grew 12% to £94m.
The reporting period includes the first six months of Nick Wilkinson’s tenure as chief executive. The former boss of KKR-backed Maxeda DIY in the Netherlands joined in May, taking over day-to-day running of the company from chairman Nick Evans.
Wilkinson said he was happy with the results and that consumers are looking for value, “which is about great products and great brands”.
“We were working against a tough backdrop and we were not immune to the headwinds, so it was a year of hard-won growth,” he said.
He said that like-for-likes were up in the period and have continued to grow in the current year.
The retailer has launched a mobile site since year end and Wilkinson said it has performed above expectations. He said Evans Cycles’ website is “well regarded” by its customers. “The balance of stores and online is really important to selling to customers,” said Wilkinson.
Evans Cycles opened three new stores in 2011, taking the retailer’s total to 45, while it continued to refit stores and “significantly extended” shops in Manchester and Birmingham.
It expects to open a further three or four this year.
Wilkinson said the store refits make the shops more modern.
He said Evans Cycles is benefiting from the boom in popularity of cycling. “It helps that cycling is on-trend at the moment,” he said, citing the Olympics and Tour de France as events that help drive interest.
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