Member Article

Halfords announces 23% profit slump

Halfords profits fell by 23.4% in the last six months despite a British sporting revival this summer.

The bike, car accessories and repair retailer said Olympic fever had failed to inspire a set of strong financial results for the half year as revenues and gross profits stayed relatively the same.

Economic uncertainty was cited as the main reason for reduced consumer spending, while employment and inflation trends, tax and consumer debt were also blamed.

Halfords said in its statement: “The Group constantly seeks to enhance its position as store of first choice in each of the markets that it serves.

“Halfords continues to invest in both its existing estate to ensure that it remains contemporary and in constant product innovation to meet customer needs.

“In addition, the Group’s market-leading Wefit proposition provides a range of services at a lower cost to our customers than that provided by competitors.”

Profit falls were unexpected after a 14.7% rise in the second quarter in bicycle revenues, which the firm attributed to the popularity of the Tour de France and the Olympic Games.

Overall revenue rises of 6.2% in quarter two prompted optimism from the retailer, who said it would push for a recruitment drive and training initiatives in its “Wefit” car repair service.

Halfords will issue an interim dividend of 8 pence per share for the 26 weeks up to the end of September, down from 14 pence for the previous half of the year.

This was posted in Bdaily's Members' News section by Miranda Dobson .