Halfords posts rise in profits
Halfords weathered the impact of warehouse problems and poor sales of bicycles today as it revealed a 13% improvement in half-year profits.
The rise to £68.7m (€80.36m) in the six months to 1 October was helped by cost cutting measures, its growing business helping consumers to fit car parts and increased website sales.
Sales in its core retail business fell 4.2% to £407.3 million in a period in which availability suffered after it opened a new warehouse in Coventry. The figure was down 4.9% on a like-for-like basis and has remained under pressure with a decline of 5% in the first six weeks since the end of the half-year.
Like-for-like sales of bikes, which include its range sponsored by Chris Boardman, declined by 1% in the past quarter due to poor availability caused by the opening of the warehouse and problems with suppliers in the Far East.
Halfords said it was on track to make full-year profits within analysts’ expectations of between £127m and £136m (€148m and €159m) and continued to grow its market share in car maintenance, premium cycling and outdoor leisure.
The company’s website, which gives customers the choice of collecting in-store or home delivery, showed 57% sales growth and now accounts for 9% of its retail sales. Visitor numbers were up 47% to 20 million. Sales of camping equipment were also strong, with record sales in key lines.
The company employs 11,000 staff and runs 462 stores in the UK and Ireland.
