HEERENVEEN, Netherlands (BRAIN) — Accell Group said it has withdrawn a proposed dividend of 0.30 euros ($0.33) per share as part of its response to the COVID-19 pandemic.
"The delay in component delivery from Asia combined with the effect of lockdowns, resulting in bike shop closures and a drop in demand across Europe, has caused us to proactively cut costs and manage for cash," the company said in a statement Wednesday.
"Typically, the first half-year is for Accell Group and for the European bicycle industry as a whole the most important part of the year. As a consequence, we have now scaled down our bicycle production capacity with nearly 70%. So far, our parts and accessories business has not been affected."
The company said it has added another 50 million euros to an existing credit line in order to react to the crisis.
"Given the exceptional circumstances, we are in close and constructive contact with our syndicate banks to keep them informed of the impact of the pandemic on our business and financial position. We also intend to make full use of the various government relief measures in all relevant countries.
The company said it is going ahead with its Annual General Meeting on April 22 but is encouraging shareholders to not attend in person but to follow along on a webcast and vote by proxy.
Accell's bike brands include Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe and Carqon, and the accessory brand XLC.
On March 6, the company announced that its sales were up 7.5% in 2019.
