Latest annual financial results to 31 March 2024 for the born-again Norton Motorcycles business would make grim reading if they weren’t set in the context of ownership and investment by one of the world’s largest bike manufacturers. However the company’s blithe admission of ongoing significant losses, while commencing commercial production and developing a new model range, was well within the comfort zone of its parent.
Revenue for the period came in at just £3.99m, up from an almost negligible £370,353 in the previous 12 months. Actual motorcycle sales accounted for £3.85m, improving from £314,872. But cost of sales and administrative expenses delivered an operating loss of £36.18m, rising from £29.11m in arrears during the previous fiscal year. Pre-tax loss was £38.24m (versus £29.69m) and net loss finished on £37.86m (versus £29.36m).
According to DVLA statistics covering the January-December 2023 period, a total of 164 new Norton motorcycles were registered. These comprised 141 Commando models, 15 V4 SV and five V4 CR models, and three unidentified.
Controlled through a tax-efficient holding entity domiciled in Singapore, Norton is solely answerable to ultimate proprietor, India-based motorcycling giant TVS Motor. Having already ploughed in capital amounting to £109.8m – to fund initial acquisition costs, build and equip a new UK manufacturing plant in Solihull, recruit a workforce and establish the bare bones of a dealer network – TVS once again confirmed its intention to continue funding Norton with effectively limitless working capital as and when required.
Vanity-project mockery is difficult to avoid, though, as Norton keeps on racking up its headcount and payroll with big names. Notable recruit last September to Norton’s board as a non-executive director — presumably padding out his BMW Group pension plan – was Hendrik Von Kuenheim, supremo of BMW Motorrad from 2008 to 2012.