Profits slip at Halfords
Car parts and cycle retailer Halfords has reported that pre-tax profit fell by 1.2% to £79.8 million in the year to 1 April.
Revenue grew by 1.7% to £1.02 billion with group like-for-like sales increasing by 1.5%.
Retail like-for-like sales rose by 1.3% while sales at Halford’s autocentres climbed by 2.5%.
Total operating costs edged up 1.8% reflecting volume-driven cost increases and investments made in key areas of the business offset by targeted cost savings.
Halfords said it had achieved a “solid” service-led retail sales performance in the year and grew its market share in the motoring and cycling categories. While cycling sales were impacted by weaker market conditions, sales in the motoring category and in its autocentres business were “robust”.
During the year, Halfords refurbished 25 retail stores and 24 autocentres. It also opened 11 new autocentres and six Cycle Republic stores.
Jill McDonald, Halfords chief executive, said: "In cycling our sales improved in the second half of the year and cycle repair delivered good growth. The recent acquisition of Tredz alongside the continued expansion of Cycle Republic and the launch of our new Laura Trott range demonstrates the strength and breadth of our cycling proposition.
“In autocentres, like-for-like sales grew for the 10th consecutive quarter and customer service measures improved. I am pleased with our progress.
“The Moving Up A Gear strategy aimed at driving sustainable long-term growth is developing well, including a step change in customer data, the introduction of new services, product innovation and exciting collaborations."
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