Industry

Triumph reports second best profit since '80s despite dip in sales

The profit is second only to the year ending June 2017, when Triumph made almost £25m

TRIUMPH Motorcycles has reported the second best year of profit in its modern history, netting £9m in the year ending June 30, 2018.  

According to a spokesperson for the company, 2018 was Triumph’s second best for profit since it was revived in the 80s by current owner John Bloor. However, due to unfavourable exchange rates, the British manufacturer still reported a year-on-year fall of 60% - from the record £24.7million profit in the year ending June 2017. The number of bikes sold also dropped, from 63,404 to 61,505

Despite total turnover from sales of the bikes increasing to £502.7 million from £498.6 million, the poor foreign exchange took a toll on Triumph, which sells 86% of its bikes abroad.

According to accounts, 2018 saw the first such sales decline for eight years, with sales having grown on average more than 3% each year over the past five years.

According to the Evening Standard, a spokesperson for the company commented: “With over 85% of our global sales in non-sterling currencies and a significant amount of our purchases also in foreign currencies, FX has a major impact on our business.

“Selling in markets like the USA, manufacturing in Thailand and assembling in Brazil means we need to hold significant bike and component stock in those currencies.”

Meanwhile, Bloor Holdings, the Derbyshire company behind Triumph, has reported a growth in profits and turnover in the year to the end of June 2018.

The company’s overall profits grew to £187.8 million from £184.9 million the previous year, while turnover grew to £1.5 billion from £1.44 billion. The other half of Bloor’s empire, Bloor Homes, was behind the majority of the profit.

As a result, the company paid a £6m dividend (down from £7m in 2017) to its founder, John Bloor, the sole shareholder who is estimated to be worth £1.8billion.

The 74-year-old started the housebuilder in 1969, and rescued Triumph from bankruptcy in 1983. The iconic motorcycle manufacturer is now headed by his son Nick Bloor. Based in Hinkley, Leicestershire, it employs 2,400 people around the world.

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