Evans Cycles has posted a 58 per cent drop in operating profits thanks to a tough market, according to its annual trading update for the year to October 31, 2016.
The retailer’s EBITDA fell to £2 million in that 12-month period, but its revenue went up by 1.9 per cent to £135.8 million.
Speaking to Retail Week, chief executive Andy King said these results reflected a trading period before he took the helm in November and that it’s “history now”.
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“There have been a number of adverse conditions in the market in recent years such as oversupply, poor weather and roadworks in London, but now there are some really positive elements that will help the overall market grow but also help us grow ahead of that market,” he told Retail Week.
King added that Evans Cycles has since recorded consecutive double-digit like-for-like sales growth plus good gross margin and gross profits.
Former chief executive Nick Wilkinson resigned in September after five years of leading Evans Cycles.
The retailer also opened three new stores last year, bringing its store count to 60.