Halfords expecting Olympics cycling surge

REDDITCH automotive and leisure products group Halfords has seen a marked increase in business in its garage servicing and auto repair arm.

In a pre-close trading statement to March 30, Halfords Autocentres saw a 15.6% turnover increase on a 13 week year on year comparison basis and a 13% increase on a 52 week basis.

The group is anticipating underlying profit before tax of between £90m and £93m for FY12 and sales of around £861m.

Looking ahead, the group expects the consumer environment to remain challenging, particularly for the motorist.

Bit it anticipates anticipate an especially buoyant cycling market this year given the strong interest in Team GB at the Olympics.

On the car repairs side, Halfords is expecting to roll out up to 30 new Autocentres during FY13.

Chief executive officer David Wild said: “In Q4 we continued to see progress in our key retail growth areas of cycling and fitting, as well as Autocentres. We are especially pleased that at a challenging time for motorists, they are increasingly turning to Halfords for their diverse after-care needs.

“The UK consumer outlook for FY13 is uncertain and the continued rise in fuel prices remains a concern. Our actions have reduced input-cost inflation, but retailers face a rise in operating costs. While we have historically demonstrated an ability to alleviate these it may be more difficult this year.

“The strong performance from our growth areas provides an attractive route to strengthen our business. We are investing to drive our strong brand even further by developing our fitting resources, increasing marketing and enhancing our multichannel offer.”