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Pashley Cycles

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Britain’s longest-established bicycle maker developing innovative products for a greener transport market

120%
 - 
Funded 27 Dec 2023
£500,004 target
£687,714 from 242 investors
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Business overview

Location Stratford-upon-Avon, United Kingdom
Social media
Website www.pashley.co.uk
Sectors Automotive & Transport Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 13249117
Incorporation date 5 Mar 2021
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Investment summary

Type Equity
Valuation (pre-money) £1.8M
Equity offered 25.11%
UK tax relief N/A
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Business highlights

  • A British manufacturer of cycles since 1926
  • Maker of an award-winning hire bike for London
  • Diverse product range for B2B & B2C markets
  • Customers in over 45 countries worldwide
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Key features

  • Secondary Market
  • Nominee investment min. £12.00 +
  • Direct investment min. £25,000.00 +

Idea

Introduction

Pashley is Britain’s longest-established bicycle maker. Founded by William "Rath" Pashley in 1926, we have been manufacturing in the UK for 97 years, and we offer our customers a unique range of quality, hand-made bicycles.

Many people know us for our beautiful classic bicycles, but we also make bikes for business customers. Our three core product ranges include:

• Cargo Cycles: for last mile delivery, vending & promotion.
• Bike Share: hire bikes & docks for urban environments.
• Classic Cycles: traditionally hand-built town & country cycles.

In an industry where we estimate over 90% of cycles sold in Britain are made overseas, we build every cycle by hand at our factory in the Midlands, just as we have since the 1920s. We have an experienced team of 38 employees - with a combined 570 years of service at Pashley - who design and manufacture products at our premises in Stratford-upon-Avon. These products are already sold in over 45 countries worldwide.

Substantial accomplishments to date

Continuously manufacturing in Britain for nearly 100 years, Pashley has a rich heritage. We have…

• supplied Royal Mail for over 40 years and with over 30,000 postie bikes.

• worked with many iconic brands including Mulberry, Montblanc, and the Morgan Motor Company.

• developed an award-winning hire bike for the London and West Midlands bike-share schemes.

• supplied cycle fleets to renowned hotels such as Gleneagles in Scotland, Brown’s Hotel in London, and Powerscourt in Ireland.

• featured in films including the beloved Paddington, Mary Poppins, and 101 Dalmatians.

• featured in numerous press articles including THE SUNDAY TIMES 100 “Ones to Watch” (Friday 1st July 2022).

• won awards for innovation and business, including the NVN Innovation Award 2021 and ‘Made in the Midlands’ ‘Manufacturer of the Year’ Award 2022.

• produced many cycles for promotional campaigns including for L’Occitane, Ralph Lauren, and Pol Roger.

• own several design patents, most recently for an innovative lock & dock system for bike share schemes.

• longstanding relationships with suppliers in the UK, EU, and FE including Brooks Saddles and Sturmey Archer.

• a management team with longstanding experience in the cycle industry.

• supplied bicycles which have been enjoyed by customers around the world, including by Royalty.

Monetisation strategy

We supply our cycles through three main channels worldwide:

• via our dealer network of over 160 locations
• direct to businesses and public bodies
• direct via our ecommerce website

Today we are concentrating our efforts on three key areas of growth in the sustainable transport sector:

• E-cargo bikes: are being increasingly used by business for delivery of post, cargo & all manner of packages,
• Bike-share bikes: cities and local authorities are introducing bike-share schemes to reduce pollution and improve urban environments, and…
• Leisure e-bikes: as more consumers are using e-bikes for their personal transport and leisure needs.

We believe Pashley is well-placed to deliver and grow in the above markets. It already has an award-winning e-cargo cycle in production and is in advanced trials with major delivery fleets. It is already the manufacturer behind two of Britain’s largest bike hire schemes and it is aiming to launch a classically styled consumer e-bike in 2024.

Use of proceeds

The funds raised will enable Pashley to strengthen development activity and invest in the team going forward. They will be apportioned as follows:

• Investment in range development, testing and marketing = 40%
• Investment in manufacturing systems, equipment, and process = 30%
• Investment in support resources and skilled people = 30%

Investor Perks

Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

Key Information

Key information investment sheet

Key Investment Information Sheet is available by downloading the following documents:

Material Debt

The company has the following outstanding debt:

1. Lloyds Bank PLC provides an overdraft facility to Pashley Holdings Ltd under a facility letter dated 20 September 2023. £847,724 credit is utilised from the overdraft facility, which has a limit of £1,115,000. Interest is charged at a rate of 4.05% per annum over the base rate of the Bank of England (giving a total interest rate which is currently 8.33% per annum). All monies owing to Lloyds Bank are currently due to be repaid no later than 31st December 2023 (or a later date as agreed by Lloyds Bank). The facility is due to be renewed on 31st December 2023. Lloyds Bank also has the following security (which includes a mortgage, and fixed and floating charges) over Pashley Holdings Ltd’s assets in relation to its overdrafts and its £10,000 Deferment Guarantee for Pashley Holdings Ltd to HMRC:
- a debenture from Pashley Holdings Ltd dated 15th June 2017;
- a mortgage in respect of all the long leasehold property of Pashley Holdings Ltd at Masons Road, Stratford upon Avon, dated 15th June 2017; and
- an Omnibus Guarantee and Set Off Agreement between Pashley Holdings Ltd and others dated 5th July 2017.

2. Bryden Holdings Pty Ltd has provided a loan to Pashley Holdings Ltd with the current outstanding principal due of £250,000.00 plus accrued interest. Interest is accruing on the principal amount each month at base plus 4.5%. The loan currently does not have a repayment schedule and there are no formal terms attached to the loan.

3. Adrian Williams (majority shareholder and chairman of Pashley Group Limited) has provided loans to Pashley Holdings Ltd with the current outstanding principal due totalling £233,263.87 plus accrued interest. Interest is accruing on the principal amounts each month at rates between the base rate plus 2% and the base rate plus 4.5%. The loans have no repayment schedule.

4. John McNaughton (shareholder of Pashley Group Limited) has provided loans to Pashley Holdings Ltd with the current outstanding principal due totalling £138,833.34 plus accrued interest. Interest is accruing on the principal amounts each month at rates between the base rate plus 2% and the base rate plus 4.5%. The loans have no repayment schedule.

Both Adrian Williams and John MacNaughton have security (fixed and floating charges over Pashley Holdings Ltd’s assets) in relation to their loans by way of debentures created on 11 May 2004. The Lloyds facility security arrangements rank ahead of the Adrian Williams and John MacNaughton loans in terms of priority. Priority between Adrian Williams and John Macnaughtan is governed under a deed of priority dated 2004.

5. Pashley Holdings Ltd has non-trade creditors in the ordinary course of business in respect of VAT (paid quarterly), tax and national insurance due to HMRC (paid monthly). pension payments (paid monthly).

6. There is an employee loan of under £500 to one of the factory team members from Pashley Holdings Ltd

Group Structure

Investors in this round are investing into and will become shareholders of Pashley Group Limited (Company No. 13249117). This is the holding company for Pashley Holdings Limited (Company No. 02974132) (“Pashley Holdings”). Pashley Holdings is the trading subsidiary of Pashley Group.

Outside Interests

The Chairman and majority shareholder, Adrian Williams, divides his time between Pashley and Moulton Group Ltd (“Moulton”). Adrian Williams is also the majority shareholder in Moulton Group Ltd. Moulton is another bicycle business that was formally demerged from Pashley in 2021.

Pashley Holdings Limited (Company No. 02974132) has a business relationship with Moulton Group Limited where they supply Moulton Group Limited with metal frames. The value of the transactions is minimal.

GB Cycles Ltd is a non-trading company that is owned by Adrian Williams, John MacNaughtan, and Instrinsic Equity (all of which are shareholders of Pashley Group Limited). GB Cycles Ltd owns GB Cycle Components Ltd, along with Jeremy Burgess (who is also a shareholder of Pashley Group Limited). GB Cycle Components Ltd is also a non-trading company, but historically did a small amount of sourcing and branding of bicycle components (but not bicycles) which Pashley used on its bicycles.

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This campaign for Pashley Cycles has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 9 November 2023 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £1,800,000

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It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Republic Europe.

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Equity Offered

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When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

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