Halfords continues to motor with latest figures boost

Published on Thursday 19 November 2009 21:18

A SWITCH from pushing sat navs to fitness-boosting bicycles and camping gear for penny-saving "staycations" has boosted profits at Halfords by 24 per cent, writes Erikka Askeland.

The group yesterday posted top-of-the-range earnings and increased sales in the 26 weeks to 2 October.

Halfords, which trades from 469 stores in the UK after opening seven new outlets in the half year, said it made a pre-tax profit of 60.9 million in its first half, compared to 49.1m in the same period last year.

Sales lifted 3.8 per cent to 425.1m, reflecting continuing strong sales of bicycles and camping gear. The firm's car maintenance business also performed well, but sales of satellite navigation devices continued to fall.

Shareholders were pleased by a 20 per cent interim dividend hike to 6p a share. Net debt for the group fell by 70m since the year end to 106m.

Chief executive David Wild said strong sales had "exceeded our expectations" but added: "We remain cautious on the consumer outlook for 2010."

Sam Hart of Charles Stanley said although the firm's shares appeared "fairly valued", the group "is highly cash generative and has a sound balance sheet".