Cycling business reports 64% profit rise as growth plans shift up a gear

Rotherham-based Planet X, a designer and retailer of cycling products and accessories, has reported a significant improvement in profitability following two years of restructuring.

The results show a 64% year on year growth in profit before tax for the year to the end of March from £1.1m to £1.8m.

Turnover has dipped from £20m to £15m, which the company said was due to its focus on improving operational efficiencies to provide it with a solid platform for future growth.

The management team has also invested in the iconic Holdsworth brand and its re-launch. It celebrated a major coup after competing in last month’s Tour de Yorkshire for its Holdsworth Pro Cycling team.

Founded by chief executive Dave Loughran in 2008, Planet X sells over 10,000 bicycle products worldwide and employs 60 staff.

Loughran has worked with chairman Trevor Parker from strategy execution experts NorthCo Management to drive forward the business and further Planet X’s growth ambitions.

Operating from a 4,405 sq m warehouse and assembly facility on Aldwarke Wharf Business Park, Planet X says it is focused on reaching a wider consumer base online and on designing and developing its core product range.

Brand names include Planet X, On-One, and Jobsworth alongside iconic brands Holdsworth, Carnac and Viner.

Sales are predominantly made online but Planet X also have a store and showroom located on Magna Way, Sheffield.

Loughran said: “Our strategy to focus upon great quality at sensible prices really resonates with an ever-savvy customer base. We are very excited with the growth opportunities of the business as we resurrect some iconic cycling brands.”

Parker added: “Planet X’s profit margins are a real indicator of how the business has responded to our operational restructuring programme.  Our focus has been on simplifying Plant X’s business model in order to create a robust direct to consumer distribution platform, placing Planet X in prime position to take advantage of market opportunities as they arise. The adage of turnover is vanity, profit is sanity and cash is king is very fitting. Turnover has been sacrificed for an impressive rise in profit.  In addition, the impact of our continued work at Planet X on the balance sheet over the year has seen us pay down debt of £2.8m so that we are now debt free and despite significant dividends being paid, cash reserves have improved by over £400,000 to £1.7m.”

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