Halfords on the up-cycle as profits rise 13%

Halfords weathered the impact of warehouse problems and poor bicycle sales, revealing a 13 per cent improvement in half-year profits yesterday.

The rise to 68.7 million in the six months to 1 October was helped by cost cutting measures, an increase in it helping consumers to fit car parts and higher website sales.

Sales in the group's core retail business fell 4.2 per cent to 407.3m in a period in which availability suffered after it opened a new warehouse in Coventry. The figure was down 4.9 per cent on a like-for-like basis and has remained under pressure with a decline of 5 per cent in the first six weeks since the end of the half-year.

Like-for-like sales of bikes, which include a range sponsored by Olympic champion cyclist Chris Boardman, slipped 1 per cent in the past quarter due to poor availability.

Halfords said it has put its distribution problems behind it, and its Coventry site is running smoothly.