Halfords rides through retail gloom with robust half year performance

Motor accessories and leisure goods retailer Halfords has posted a set of “robust” half year results against a backdrop of “a challenging UK consumer environment.”

For the 26 weeks to 28 September, the Redditch-based business reported a 1.9% rise in revenue (up 2.5% like-for-like) to £599.9m from £588.7m.

Underlying pre-tax profit came in at £30.5m, down from £36.8m, which Halfords said was broadly in line with expectations and reflected planned operating cost growth, primarily driven by phasing, one-off items and investments.

The company said its new strategy to “inspire and support a lifetime of motoring and cycling” was progressing well, which have included measures such as  optimising space in all of its stores,   redefining and differentiating its own label ranges, and strengthening its cycling specialist credentials through agreement with folding bike manufacturer Brompton to sell their products across the group.

Graham Stapleton, chief executive, said: “Despite the challenging UK consumer environment, we delivered a robust sales and cash flow performance in the first half, with costs and profit broadly in line with our expectations. We are making good early progress as we implement our new strategy, and we are encouraged by the initial signs. We are moving to a more customer centric approach, leveraging our expertise to provide a more differentiated shopping experience and an integrated and more convenient services offer.”

The results come as it was reported that Halfords ended talks last month over a potential rescue deal for struggling rival Evans Cycles.

Halfords, which is listed on the London stock market and is the UK’s biggest bikes retailer, was among a number of parties which tabled indicative offers for Evans.

Mike Ashley’s Sports Direct then swooped in to buy the business out of pre-pack administration.