UK Cycle Centre
UK Cycle Centre supplies quality bicycles, components, clothing & accessories worldwide. They have a superb service that allows users to reduce the cost when purchasing by part exchanging their used bikes, components, clothing & accessories, with free EU collection inclusive.
UK Cycle Centre retails new and approved used bicycles, including mountain bikes, components, clothing and accessories.
Over the last 2 years, UKCC have made significant traction with minimal marketing, and they are now ready to ramp things up with exciting plans ahead!
With the funding, they will execute their comprehensive and simple strategy of marketing their new magento website within the cycling sector, increasing their product range, employing more great staff, and opening a flagship retail store.
The UKCC team have all worked very hard to create a business with substantial scalability worldwide, with growth through to an exit strategy of sale potentially within a 5 year period.
The important stuff:
They are the first to market - there are great barriers in place protecting their USP. It has taken them 2 years to create their solid foundation for their business to prosper.
Traction - from year 1 to year 2 they increased turnover in the region of 300%. With funding and execution of their strategy, they are able to secure a turnover in excess of £1m in year 3.
Their market is massive - cycling is a growing market and has been for a long time. It is also forecasted to grow at 5.5% a year through to 2017 (LSE, 2010). UKCC are able to capture and harness the additional business of selling and exchanging all cycling kit, making their business larger in contrast to other retailers.
The A Team - the team has vast experience, including expert mechanics with qualifications in Cytec 3. Founder Adam Broadhurst has an unprecedented motivation for success and will not stop until UK Cycle Centre is a worldwide brand.
Ready for take off - their new website enables efficiency in buying, selling and exchanging. It will allow for a vast product mix, great marketing and the new edition of a C2C marketplace, creating a one-stop shop cycling powerhouse for goods, social interaction, and information.
The cycle market has an abundance of success stories when it comes to sales within the retail or wholesale sector. Sales have been to competitors and private equity firms. Some examples are below:
1. Halfords recently purchased Tredz & Wheelies for £18.4m
â€¨2. Evans recently sold to ECI Private Equity for £100mâ€¨
3. Chain Reaction Cycles recently sold to Wiggle (Owned by a private equity firm)
UK Cycle Centre projects a £1.5m EBITDA after 5 years, at a 10x exit multiple; this would raise a sale amount of £15m. Toward the 5 year milestone, UKCC will review the advantages and disadvantages of increasing the timeline to 10 years. If they can continue or increase the ROI over the period, they would very much enjoy growing for the foreseeable future.
The funds are being used to expand their current retail site. This will include shop fitting, a new member of staff, and new stock in line with UKCC's strategic growth plans. The Financials shown are for AB Cycles Ltd, through which UK Cycle Centre are raising funds, for both of which Adam Broadhurst is Director.
Where will the funds go?
A Little Something
A Little More
Accessorise Your Bike
Time To Get Completely Kitted Out
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A. Currently we have already increased revenue consistently, as such we are not jumping from FY2 turnover. From Jan 2016 our T/O has been approx. £40K - £50K per month.
New developments that will increase our revenue over FY3 are our new website (launching within several weeks), increased SEO, and digital marketing, expansion of our current retail site increasing in store spend, and a flagship store within the Bristol area ( the latter being funded via an equity sale). All of the above will increase our turnover, and our increased net profit comes from the company moving out of the start up stage and into the growth stage, really focusing our efforts on increased margins and profitability.
In addition we are being assisted by a consultancy company to ensure we push to exceed our targets over FY3.
Many thanks for your question.
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"UK Cycle Centre retails new and approved used bicycles, including mountain bikes, components, clothing and accessories."
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