Profits accelerate at Halfords after bike boom

Underlying profit before tax at motoring and cycling products and services giant Halfords has doubled in the six months to October 2.

The firm revealed this morning (November 18) that a “very strong” first half saw revenues grow by almost 10% to £639m, while profits were up 116% to £56m.

The figures have been driven by strong growth in cycling revenue, which was 54% higher than in 2019.

In a statement this morning, Halford said: “We continue to have great confidence in the medium-term opportunity for our motoring products and services business as illustrated by the investment in recruitment and training that we are currently making in this area. We also believe that its resilient performance in H1 gives a clear indication of its potential once the pandemic has subsided. However, we remain cautious on the impact that national and local lockdowns may have on our H2 performance, with fewer vehicles likely to be on the road.

“In cycling, we expect good levels of demand to continue, notwithstanding the normal seasonal decline as we enter the winter months of H2.

“Given the latest national lockdown announced by the Government and the inherent uncertainty in the current trading environment, including the outcome of Brexit negotiations, we do not believe it appropriate to provide profit guidance for FY21. We are well placed to address potential headwinds we may face and capitalise on tailwinds as they arise, and our balance sheet and liquidity position remain very strong. This gives us a solid platform to build on and we therefore remain confident in the future growth prospects for Halfords.

“We will next update the market on 14 January 2021, providing an update on trading during the peak festive season.”