Accell Group N.V. is adjusting its profit forecast upwards. For the full year 2004 the company now expects an increase of earnings per share by at least 30% compared to 2003. The principal reasons underlying this adjustment are solid sales of bicycles, bicycle parts and fitness products in the upper segments, plus the positive contribution of acquired companies during the first half of the year. To enhance the marketability of its shares, Accell Group is proposing a stock split.
René Takens, Chairman of the Executive Board of Accell Group, commented: “Obviously, we are satisfied with the development of our results during these times. The extensive attention for the centennial celebration of Batavus and the sales growth of the Sparta ION, an electrically supported bicycle, have given our results an extra impulse.”
It is clear that consumer spending will continue to be restrained for some time to come. However, the prospects for the coming months for Accell Group are good. The new bicycle collections for the upcoming season were presented to bicycle retail specialists in September and October, and the response to the new models has been positive. The turnover of bicycle parts continues to grow, and the integration of Juncker and Van Buuren & Co, which were acquired during the first half of the year, is in full swing. Also, a significant number of new fitness products has been brought on the market, and integration of the Bremshey brand, which was acquired in August, is in progress.
2 for 5 stock split
During the past several years trading volumes in Accell Group shares have steadily grown. The share price also rose significantly during this period and has meanwhile surpassed the EUR 30 barrier. To enhance marketability, a proposal to split the shares 2 for 5 will be presented during an Extraordinary General Meeting of Shareholders. Following approval by the shareholders, the split can already be effected in December.
