9 March 2016 – trading statement
A trading update has been released by the company, which has hit the share price hard. Although the numbers are reassuring, with revenue up 10% in 2015 and a further 4% in the first eight weeks of 2016, some worrying commentary has had a significant impact. The company believes that the mid-tier independent cycle market is ‘saturated and highly competitive’ and there is risk of a strong US dollar. There is also a potential issue with tax underpaid to HMRC by recently acquired businesses. The magnitude of this has not been specified by any sums due should be reclaimable from the sellers of Pro Rider and EMC. Overall we believe that the fall in the share price is overdone and now is an opportune time to BUY.