Halfords profits on target despite weaker bike sales
Halfords has seen profits for six months to October grow 13% as cost-cutting outpaced poorer bicycle sales.
On your bike: Halfords overcame supply problems in 2010.
The rise in profits to £68.7m in the six months to 1 October was helped by cost cutting measures, its growing business helping consumers to fit car parts and increased website sales.
Sales in its core retail business fell 4.2% to £407.3m in a period in which availability suffered after it opened a new warehouse in Coventry. The figure was down 4.9% on a like-for-like basis and has remained under pressure with a decline of 5% in the first six weeks since the end of the half-year.
Like-for-like sales of bikes, which include its range sponsored by Chris Boardman, declined by 1% in the past quarter due to poor availability caused by the opening of the warehouse and problems with suppliers in the Far East.
Halfords bought Nationwide Autocentres in February and is in the process of rebranding the centres under the Halfords Autocentres brand.
It plans a national advertising campaign in the spring to push its car repair and servicing business.
Halfords said it has put its distribution problems behind it and its Coventry warehouse is running smoothly. Teething problems from its opening resulted in an additional 1.4% being knocked from like-for-like sales in the second quarter.
Halfords said it was on track to make full-year profits within analysts' expectations of between £127m and £136m and continued to grow its market share in car maintenance, premium cycling and outdoor leisure.
The company's website, which gives customers the choice of collecting in-store or home delivery, showed 57% sales growth and now accounts for 9% of its retail sales. Visitor numbers were up 47% to 20m. Sales of camping equipment were also strong, with record sales in key lines.
Its Autocentres business, in which it services and repairs cars, showed a 1.2% increase in like-for-like sales in the past six weeks.
Halfords bought Nationwide Autocentres' 224 repair centres in February for £73.2m and plans to open an additional 15 Autocentres in coming months.
The company employs 11,000 staff and runs 462 stores in the UK and Ireland.
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