Autocentres business helps Halfords out
GOOD performance from its roadside car repair and accessories business has come to the aid of Redditch-based Halfords against the backdrop of a tough retail market.
Announcing its preliminary results for the half year to September 26, the leisure and automotive products retailer revealed total group revenue was up slightly compared to the same period last year – 0.4% to £455.6m.
Revenue in its retail business was actually down by 1.9% to £393m. However, revenue in its Autocentres business was up by 17.2% to £62.6m.
The profits picture is quite gloomy, however. Profit before tax and non-recurring items was down 18.2% and the operating profit before non-recurring items was down 23.6% in retail. But once again the picture is different in Autocentres with operating profit before non-recurring items up by 10%.
Halfords chairman Dennis Millard said: “Our retail performance improved markedly in the second quarter after a difficult first quarter and, with a proactive trading stance, we took full advantage of the opportunities provided by the ‘summer of sport’.
“We continue to be encouraged by the performance and long-term potential of Autocentres. We also made good progress on channel and category initiatives; central to this is the priority of building a company-wide customer service ethic as well as investing in training and support for colleagues.
“Our second-half retail planning assumptions remain unchanged and cautious given the prevailing pressures on the consumer as we approach the important winter and Christmas trading periods.
“We continue to plan for a full-year group Profit before tax and non-recurring items of between £66m and £70m. We have a strong platform for sustainable growth; the management team retains its focus on active trading, cash generation, prudent cost management and the delivery of strategic objectives.”
