Sales down, profits up at Halfords
Bicycle and car parts giant Halfords said that it “will deliver solid profit growth” for the first half of the year despite a fall in sales in its retail division.
The Redditch-based company suffered a fall in like-for-like sales of 4.5 per cent in its retail group and a 0.8 drop in its autocentres division.
However, group revenues for the half-year increased by 7.6 per cent year on year, which the company said reflects the successful acquisition of Nationwide Autocentres in February this year.
Profit before tax for the group is expected to be in the range of £67-69m for the first half, the company said in its trading statement this morning. If achieved, this represents year-on-year profit growth of 12 per cent.
The company has 460 Halfords stores across the country, as well as 225 auto centres.
David Wild, chief executive officer, said that the company was “cautious about the macro-economic environment”.
He added: "Halfords will deliver solid profit growth in the first half despite the challenging environment. We continue to improve our cost base and in the past few months have successfully addressed a number of company issues, such as the reconfiguration of our warehousing and distribution infrastructure.
"We are meeting the challenges presented by a more cautious UK consumer by building on Halfords' retail market leadership and strong business model. The integration of our Autocentres business is continuing well and, after this year of investment, we are well positioned to accelerate earnings growth.”
