WiggleCRC has recorded a rise in interim profits which boss Will Kernan attributed to “a reset of the business model” in 2017.
The cycling etailer posted a surge in EBITDA at the half-year mark of £8m, up from £300,000 during the same period the previous financial year.
The retailer credited its rise in profitability in its current financial year to the strength of its own-brand proposition and expansion into new product categories, including gym, outdoor and wellness sectors.
This surge in profitability follows on from a 97% decline in EBITDA to £200,000 in the year to December 31 2017, which the retailer attributed to “significant integration, merger and restructuring” costs.
WiggleCRC, which acquired German cycling etailer Bike24 last October, recorded a 39% increase in revenue to £393m in its last financial year, bolstered by 6% like-for-like growth.
Chief executive Will Kernan said: “We are on course to report significant profit growth for 2018 following a reset of the business model.
“The foundations are now in place to deliver long term sustainable and profitable growth. With the successful integration of Chain Reaction Cycles and more recently Bike24 in Germany, WiggleCRC has consolidated its position as the largest global online retailer of cycling and tri-sports.
“We are now focused on further developing our product offering and ranges for our expanding active customer base of over 5 million influential sports enthusiasts.
“While the broader retail climate and the cycling sector in the UK face challenges, WiggleCRC and Bike24’s increasing breadth of sports and leisure activities, its online focus and global scale, with over 65% of revenues now coming from overseas, provides a flexible and diversified platform for further growth and market outperformance.”