One of the UK’s largest independent cycling retail groups, based in Swansea, has reported record sales figures in 2014/15 across its three businesses.
The group, which includes online and real-world cycle retailers Tredz, Wheelies Direct and the B2B Cycle to Work provider, Cycle Solutions, saw a combined 23% increase in sales to achieve a turnover of £31 million in the year to the end of February 2015 with 11% EBITDA growth to £2.3m.
The group’s highest ever sales figures follow £1m investment in the companies’ websites, online marketing and 30-strong software and web development team along with achieving re-accreditation of ISO9001.
Wheelies Direct, headquartered in Swansea, is the UK’s largest cycle replacement provider to the insurance industry saw sales grow by 46% across retail, web, mail order and 3rd party fulfilment.
Cycle Solutions, which operates the B2B Cycle to Work scheme for organisations including EDF Energy and H. J. Heinz, reported a strong 33% growth in turnover.
Tredz, a leader in ecommerce for the cycling sector, delivered a 37% increase in sales from its website and three Tredz stores. During the year Tredz also partnered with the Taiwanese manufacturer, Giant to open their largest Giant-branded concept store in the UK, which exceeded expectations in its first period of trading.
This contributed to overall sales growth for Tredz of almost £3.7 million, taking total sales to £13.7 million, with 75% delivered online. Further growth is projected this financial year with the company on track to top £21 million in sales and to more than double its EBITDA.
Founded by Swansea brothers, Keith and Mike Jones, in 1989, today the group has 259 employees, two dedicated on-site contact centres, software and web development team, workshop and warehousing. It operates from custom-designed 45,000 ft² warehousing along with office, workshop and storage space and the four retail stores. The group accesses a portfolio of over 550 of the leading cycling and triathlon brands.
Group Managing Director, Keith Jones said,
“Sales in all three companies have grown as a result of the group’s two-year period of investment in our people, premises, colleague development, IT and supply chain. We’ve created 53 jobs, an increase of 26%.”
“Our Tredz brand is exceeding expectations, continuing to take market share and follow an aggressive growth strategy. The development of our bespoke in-house web platform is costly but ensures Tredz control every aspect of the customer journey from a great user experience to a highly competitive pricing model.”
“We’ve improved our customer offering and service levels and these results clearly show that our strategy is on the right path. With the market for cycling and triathlon as buoyant as it is, and many more improvements on the horizon, we’re extremely positive about our future,”.
The group remains focused on continuing to increase share of the domestic market, and is looking to expand into global markets as well as considering new store opportunities in select UK locations.
The group is also actively looking to acquire businesses to consolidate with the existing portfolio of brands.