Halfords hails strong first half
Halfords has reported strong first half trading with revenue growing by 9.6% to £638.9 million in the six months to 2 October.
Like-for-like sales in the period increased by 6.7% following a like-for-like uplift of 8.1% in retail sales. However, like-for-like sales at Halfords’ autocentres business declined by 2%.
The results meant that the car parts and cycle retailer posted an underlying pre-tax profit of £56 million compared to £25.9 million in the same period in the previous year.
Graham Stapleton, Halfords chief executive, said: “We are very pleased to have achieved such a strong first half performance against the backdrop of one of the most challenging trading environments in recent history.
“We have worked hard to capitalise on the cycling market tailwinds by sourcing more stock from existing and new suppliers, as well as launching new products and brands to serve the high level of demand for our cycling products and services.
“Despite the headwinds we have seen in motoring, with UK traffic 30% lower than pre-Covid-19 levels and the impact of the MOT deferment, our ‘Road Ready’ campaign and the investments we have made in our motoring services business have enabled us to increase market share and grow the business in Q2.”
The retailer has now launched a new recruitment programme as it looks to fill a range of service-oriented roles across stores, autocentres and its mobile expert vans.
Classed as an essential retailer, Halfords has been able to keep its stores open during the current lockdown. Reporting on more recent trading, the retailer said sales remained relatively strong in the first five weeks of its second half, although the new lockdown has had some impact on trading since it came into force on 5 November.
Looking ahead, Halfords said it was unable to give any profit guidance for its full year due to uncertainty caused by lockdown restrictions and the ongoing Brexit negotiations. It added: “We are well placed to address potential headwinds we may face and capitalise on tailwinds as they arise, and our balance sheet and liquidity position remain very strong. This gives us a solid platform to build on and we therefore remain confident in the future growth prospects for Halfords.”
