Bicycle and car parts retailer Halfords has reported a rise in half-year profits, helped by a sharp increase in sales of bikes.
Pre-tax profits rose 5.2 per cent to £44.6m for the six months to 27 September, with total sales up 7.7 per cent to £490.6m. Revenues from bike sales increased 14.2 per cent, and Halfords said its car maintenance division had also done well.
Shares in the company climbed 9 per cent in early trading following the better-than-expected results.
Halfords added that a warm summer, a new website and store refits had helped to boost its results. It also said it was seeing the benefits from adjustments in staffing, a new hiring procedure and employee training programmes.
Chief executive at Halfords, Matt Davies said: “These are early days in our three-year transformation plan but it is encouraging to see the retail business deliver a strong first-half performance.”
He said the company made the most of the warm summer with “compelling offers” in its cycling range. Halfords sells bike ranges endorsed by cyclists such as Victoria Pendleton and Chris Boardman. However, Halfords’ autocentres unit continued to struggle, with sales falling by 2.1 per cent.
Mr Davies said the car centres had faced a number of challenges, but the business had a “clear investment plan in place” for future growth.
Kate Calvert, an analyst at Investec, said: “While still early days in Matt Davies’ three-year recovery strategy, these results should help to reassure doubters that Halfords’ brand still resonates well in consumers’ minds.”
Previous Post
Technology Vs Retro for the Christmas 2013 Toy Wish List
