Company report: Chain Reaction Cycles
Chain Reaction Cycles, based in Ballyclare, was until July 2016, a relatively new Northern Ireland cycle distributing business that had successfully consolidated a major expansion over the previous five years.
The business relies extensively on internet sales.
The company, which started out as a small bicycle shop in Ballynure, also retails a range of cycles, cycle parts and accessories through retail outlets.
In February 2016 the company owners announced that they were in negotiation with Mapil Bidco for the sale of their shareholdings.
The deal required merger approval from the Competition and Markets Authority which was received in June 2016.
The deal was completed on July 7, 2016 and at that date the directors, including the Watson family, who had held office in the original business, resigned.
Three new directors were appointed by Mapil Topco which also owns Wiggle Ltd.
The main and controlling shareholder in Mapil Topco is Bridgepoint Europe IV (Nominees).
With the change in ownership a number of companies which were reported as related to Chain Reaction Cycles are now reported as part of the Wiggle group, including Hotlines Europe, Decade Europe, Chain Reaction Cycles Retail and Chain Reaction Cycles (Ireland).
In a further recent development on August 27, 2017, the trade and selected assets of this company were hived up into Wiggle Ltd at book value.
This may affect the next annual report for the year 2017.
Business turnover of Chain Reaction Cycles recovered in 2016 to a new record high level.
Sales to markets outside the EU rose sharply to £71m, compared to under £52m in 2015.
After incurring restructuring costs of £1.4m in 2015, which affected operating and pre-tax profits, in 2016 operating profits and pre-tax profits also hit new high levels.
The balance sheet value of shareholders' funds rose by 18% to reach £31.2m on January 1, 2017.