Accell Group says it saw an increase in revenues and profits in the first quarter of this year compared with 2008, without giving precise numbers. Much of the boost came from bicycles, which customers are still buying despite the economic slowdown as a result of increasing awareness of health and environmental issues. Parts and accessories also sold well, as people who did not buy a new bike would buy parts to extend the life of the bicycles they already have.
Sales of fitness equipment fell somewhat, however, continuing a trend that began in the last months of 2008. Fitness represents only about 7 percent of Accell’s business so the impact was minimal. Last year the company reorganized the fitness division to adapt to the lower turnover, and will continue to monitor it this year.
The increase in sales for the first months was both organic and related to the consolidation of acquisitions made in 2008.
The company said it expects the rest of the year to go as well, with turnover and profits continuing to increase. It will elaborate in its half-year report, scheduled for July 22. It also declared a dividend €1.42 per outstanding ordinary share, which shareholders can receive in cash or shares. That is a pay-out ratio of 48.1 percent and a dividend yield of 8 percent, based on the closing price of the shares at the end of 2008.
