Insync is looking to reduce its headcount, leave its new facilities and seek a cash injection from its parent Hero Cycles amid difficult trading.
The Insync brand was launched into the UK by the huge Indian bicycle manufacturer in 2018, with UK-designed bikes and some considerable success – surpassing 50,000 unit sales in 2020.
The “huge erosion in demand” in the UK bike market in 2022 has taken its toll, however, requiring an “immediate realignment of its operations” that will reduce infrastructure it currently uses.
Costs will be cut to the tune of £400,000 – £450,000 per year thanks to exiting its current facilities at Centenary Link. Staff head count will be reduced to a “small, focused core team” for Insync’s strategic corporate partners – most of whom “do not require the group’s existing infrastructure”. Insync also detailed the need for an injection of equity capital for £3 million from parent Hero Cycles by no later than 31 March 2024 to ensure adequate working capital to carry out operations for the going concern.
Support from its parent has been “unwavering” with £4.85 million of equity put into Insync during the financial year ending March 2023.
Company accounts noted supply chain difficulties, transport personal shortages and extra admin due to Brexit had resulted in a difficult start to the year, not to mention the “worst living crisis in a generation…higher taxes, record inflation and increasing interest rates”.
However the firm said it is forging substantial new business relationships already trading (albeit in their infancy) with eBikes core to its plans of driving revenue moving forward.
