Long winter fails to chill Halfords

AUTOMOTIVE and leisure retailer Halfords said today the prolonged winter had resulted in mixed fortunes for the business but generally the company had performed well during what were difficult trading conditions.

The Redditch-based firm said the prolonged winter period has caused a year-on-year change in its sales mix which had benefitted its Car Maintenance business but had a marked dampening effect on its outdoor-focused categories, such as Cycling and Travel Solutions.

In a pre-close update, the firm said its anticipated group pre-tax profit for the year ended March 29, 2013 would remain in line with previous assumptions at somewhere between £68-72m.

In the 11 weeks to March 29 group revenue rose 1.7% and for the year as a whole, 1%. Retail was up 0.5% over the final quarter but declined 0.9% over the course of the year.

Car Maintenance was up 10.4% over the 11 weeks to March 29 and 5.1% for the year as a whole, however, Cycling declined 8.8% during the final quarter and by 0.6% on the year.

It said its financial position was sound as it looked to focus on exiting old inventory and invest for the new financial year.

Matt Davies, chief executive, said: “This was a robust performance demonstrating how the balance of our business can offset some variations in the weather. Car Maintenance sales were strong as we helped motorists cope with the freezing conditions and this endorses our strategy of investment in our unique wefit offer. Cycling and Travel Solutions were impacted in the period but we have a strong offer ready for the spring and summer periods.
 
“We are focused on significantly improving the service we offer customers and this emphasis will be central to our future investments. I look forward to outlining our plans to secure sustainable revenue growth through our three-pillared strategy at our preliminary results on May 23.”