Bike boom sees Halfords profits move up a gear
Halfords’ profits are set to soar after people shunned public transport in favour of bikes and cars during the pandemic.
The retail giant is poised for another bumper trading announcement when it updates company shareholders later this week.
It is expected to reveal a pre-tax profit of between £90 million and £100m for the year to the end of April. That compares with £52.6m for the previous year.
Susannah Streeter senior investment and markets analyst at Hargreaves Landsown, said: “With higher than expected profits likely to be announced, a buoyant net cash position is likely, and a healthy dividend could be on the cards.’’
Bike sales have benefited from pandemic trends as Brits chose to cycle more when travelling during lockdown periods while health and fitness has also been a priority for many.
Investors will be hopeful that staycations and a desire to have healthier commutes to work will keep the strong momentum over the current financial year.
A message from the Editor:
Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions
Want to join the conversation? Please or to comment on this article.