16th Jan 2020 09:48
(Alliance News) - Motoring and cycling products retailer Halfords Group PLC on Thursday reported an earnings rise in its third quarter, which included the pivotal Christmas trading spell, with its Autocentres servicing unit seeing revenue climb by almost a third.
In the period to January 3, Halfords revenue rose by 4.6% year-on-year and by 1.3% on a like-for-like basis. Across its retail units, sales revenue climbed by 0.6% year-on-year and by 0.8% like-for-like.
Retail saw a like-for-like improvement in the Cycling segment, by 5.9%, though in Motoring, like-for-like revenue was 2.7% lower than last year.
Elsewhere, there was a strong showing in the Autocentres division, third quarter revenue climbed 31% from last year and by 4.6% on a like-for-like basis.
Chief Executive Graham Stapleton said: "I am pleased with our overall performance in the third quarter, with total revenue growing nearly 5% in the quarter. Our results reflect the positive actions we have taken across the group to deliver on our strategy, particularly Motoring Services, which grew strongly."
The numbers for the first 40 weeks of its financial year made for me difficult reading, however.
Total revenue was 0.2% lower year-on-year, and down 1.2% on a like-for-like basis.
Autocentres revenue was 13% higher in the 40 weeks, though retail was down 2.2% and 1.8% lower on a like-for-like basis.
Motoring was again the laggard, with like-for-likes down 4.5%, though Cycling revenue was 2.1% higher.
For the full-year, Halfords maintained its guidance of underlying pretax profit, in the range of GBP50 million and GBP55 million. The measure is also on a pre-IFRS 16 basis, an accounting standard governing the financial treatment of leases.
Halfords warned: "Though pleased with our performance, market conditions remained subdued and we are not anticipating a near-term improvement.
Shares in the company were 6.5% higher at 154.88 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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