| Brompton Bicycle puts £100m factory on ice as bosses blame weak economy Posted by ChrisB at 21:14, 27th January 2026 |     |
From Telegraph, via MSN
Brompton Bicycles has put plans for a £100m factory on hold as it battles against a weakening economy.
The UK company, which makes folding bicycles popular with commuters, said it needed to see a “meaningful recovery in market conditions” before it could press ahead with the project.
The manufacturer received approval for the site in Ashford, Kent, in January last year, where it promised to create 2,500 jobs.
The factory, first proposed by the bicycle manufacturer Brompton in February 2022 in the wake of a sales boom during Covid, would be built on stilts, as the site is designated as a flood zone.
However, Will Butler-Adams, the chief executive, said the project had been paused indefinitely following “consecutive years of challenges” for the cycling sector.
“While the project remains firmly on the table, it is currently on hold as we need to see a meaningful recovery in market conditions before moving forward,” he told KentOnline.
He added: “Given the scale and long‑term commitment of Ashford, it’s important that we proceed at a moment when the commercial environment is stronger and better supports the investment.”
Brompton, founded in London in 1976, said in its latest accounts that sales fell to their lowest level since 2021 in the year to the end of March 2025.
The business sold 78,530 bikes during the period, down 7.5pc year-on-year, as bosses blamed “wider global economic uncertainty and continued challenge in the cycling industry”.
Donald Trump’s tariffs have proven to be a particular problem for the business because it sources parts from countries including Taiwan, China, Belgium and Germany.
Mr Butler-Adams has previously hit out at the US President’s trade war by suggesting it is naive to force British companies to build their products in America.
All of its bikes are currently made in its headquarters in Greenford, West London.
“You could build the factory,” Mr Butler-Adams said last year. “You could buy the equipment. But the know-how, the engineering, the skills and experience – you’d have to open up your immigration if you want to sort that out, and obviously that’s not at the top of the agenda for any of the political parties.”
Mr Butler-Adams has also said “rising labour and overhead costs continue to pressure margins” after Rachel Reeves raised both employer National Insurance contributions and the minimum wage last April.
He warned the UK Government not to stifle growth by imposing further costs on business, telling the Financial Times that changes under Labour had cost the company £2m and led to 40 job losses.
Despite the slowdown in sales, Brompton revealed that overall revenues slipped by just 0.9pc to £121.5m last year as it released its first large-wheel bike – the G line – in Britain and Europe.
However, pre-tax profits were only £130,500, up from £4,602 a year earlier.
The company had been forced to slash prices as it grappled with excess stocks after overestimating demand in the wake of the pandemic.
Mr Butler-Adams said in its latest accounts: “Looking forward, the outlook remains optimistic, with normalisation in the cycling industry after consecutive years of challenges, the impending launch of the G line in new markets, and continued investment in new product lines, which the Brompton Group is excited to release soon.”
The UK company, which makes folding bicycles popular with commuters, said it needed to see a “meaningful recovery in market conditions” before it could press ahead with the project.
The manufacturer received approval for the site in Ashford, Kent, in January last year, where it promised to create 2,500 jobs.
The factory, first proposed by the bicycle manufacturer Brompton in February 2022 in the wake of a sales boom during Covid, would be built on stilts, as the site is designated as a flood zone.
However, Will Butler-Adams, the chief executive, said the project had been paused indefinitely following “consecutive years of challenges” for the cycling sector.
“While the project remains firmly on the table, it is currently on hold as we need to see a meaningful recovery in market conditions before moving forward,” he told KentOnline.
He added: “Given the scale and long‑term commitment of Ashford, it’s important that we proceed at a moment when the commercial environment is stronger and better supports the investment.”
Brompton, founded in London in 1976, said in its latest accounts that sales fell to their lowest level since 2021 in the year to the end of March 2025.
The business sold 78,530 bikes during the period, down 7.5pc year-on-year, as bosses blamed “wider global economic uncertainty and continued challenge in the cycling industry”.
Donald Trump’s tariffs have proven to be a particular problem for the business because it sources parts from countries including Taiwan, China, Belgium and Germany.
Mr Butler-Adams has previously hit out at the US President’s trade war by suggesting it is naive to force British companies to build their products in America.
All of its bikes are currently made in its headquarters in Greenford, West London.
“You could build the factory,” Mr Butler-Adams said last year. “You could buy the equipment. But the know-how, the engineering, the skills and experience – you’d have to open up your immigration if you want to sort that out, and obviously that’s not at the top of the agenda for any of the political parties.”
Mr Butler-Adams has also said “rising labour and overhead costs continue to pressure margins” after Rachel Reeves raised both employer National Insurance contributions and the minimum wage last April.
He warned the UK Government not to stifle growth by imposing further costs on business, telling the Financial Times that changes under Labour had cost the company £2m and led to 40 job losses.
Despite the slowdown in sales, Brompton revealed that overall revenues slipped by just 0.9pc to £121.5m last year as it released its first large-wheel bike – the G line – in Britain and Europe.
However, pre-tax profits were only £130,500, up from £4,602 a year earlier.
The company had been forced to slash prices as it grappled with excess stocks after overestimating demand in the wake of the pandemic.
Mr Butler-Adams said in its latest accounts: “Looking forward, the outlook remains optimistic, with normalisation in the cycling industry after consecutive years of challenges, the impending launch of the G line in new markets, and continued investment in new product lines, which the Brompton Group is excited to release soon.”
