COVID-19: Accell withdraws dividend proposal & downscales bicycle production

Accell Group is to withdraw its dividend proposal of 2019 (€0.30 per ordinary share) as part of a package of managerial measures to ensure business continuity over the coming unforeseen disruption.

As locally reported, Accell has confirmed it has scaled down bicycle production capacity with nearly 70%. So far, P&A has not been affected.

COVID-19 related delays in component delivery from Asia coupled with lockdowns throughout many nations have caused the group to proactively cut costs and manage for cash.

“We have drawn € 50 mln under the existing accordion facility to our term loan (increasing it to € 125 mln). 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.”

Shareholders are encouraged to attend April AGM virtually.

Other major cycle groups like PON have announced a halt in production for at least three weeks.