7th Nov 2013 08:38
LONDON (Alliance News) - Cycle and car maintenance product retailer Halfords Group PLC Thursday reported higher sales and profits for the first half of its financial year, as the UK's growing passion for cycling and a revamp of its products drove growth.
The company said the good summer weather had driven up sales of cycles, while its recent revamp meant it had the stock and better products to meet the demand. It has recruited recent stars of the highly-successful British track cycling team to design products, including Victoria Pendleton who designed a range of women's bikes and Chris Boardman who designed a range of top-end cycles.
Halfords reported a pretax profit of GBP44.6 million in the six months to September 27, up from GBP42.4 million a year earlier, as revenues rose to GBP490.6 million, from GBP455.6 million. Like-for-like sales rose 6.2%, driven by a 7.7% increase in its retail stores thanks to strong sales of cycles.
The company is part-way through a revamp programme, refocusing the shops on the most successful lines of cycles and car maintenance products, giving its staff better training and customer service skills and improving product ranges and stock availability.
However, its autocentres, which do car maintenance and servicing, didn't do as well, with like-for-like sales down 2.1% as it serviced fewer rental cars as operators renewed their fleets. Overall sales at the unit were up 6.4% as it opened new centres, and it said it would continue investing in the business. It currently has 296 centres and intends to open 20 to 30 more in 2014. It is still looking for a new head of the unit.
Investments and debt reduction meant it cut its interim dividend to 5.2 pence, from 8p last year, as it had previously guided. It cut its net debt by 47% to GBP57.5 million.
Halfords shares were up 10.2% ay 461.30 pence early Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
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