Halfords in profit slide
Pre-tax profit has fallen more than 20 per cent at Redditch-based retailer Halfords, it was revealed this morning (10 November 2011).
Halfords' Autocentres division managed to slightly boost falling company sales. It reported a £4.4m sales boost to £53.4m while the retail division slipped 1.6 per cent to £400m.
Total group revenue stood at £454m for the six months to 30 September, slipping 0.5 per cent from £456.3m. Pre-tax profit fell 20.4 per cent to £54.7m.
The company said a fall in retail gross margin was "predicted" as it drove to maximise cash returns.
Six new Autocentres opened in the period, generating £500,000 of new incremental revenue, said Halfords.
Chief executive David Wild said: "In a challenging market Halfords has delivered a robust sales performance in the first half.
"Motorists continue to be affected by inflationary rises in fuel and insurance costs, so their spending on maintenance has been subdued. We are, however, delighted with the growth of wefit in stores and the improvement in the sales performance of our Autocentres business."
