Halfords pedals ahead with 43% cycling boom amid "volatile trading environment"

A UK motoring and cycling retailer has reported stronger than anticipated trading over the first seven weeks of 2021.

Halfords, which has more than 750 stores and garages across the UK, has reported that despite continuing lockdown restrictions, it saw growth across the business during the period.

The company has recorded particular growth in its cycling division, with like for like figures 43 per cent above last year and performance cycling business Tredz growing by 60 per cent.

There was also growth across its retail and autocentre divisions, rising by 5.1 per cent and 13.3 per cent respectively.

Due to the growth in this quarter, the company has announced that it will be repaying the £10.7m of furlough income received in full, with profit after tax now set to reach between £90m and £100m for the full year.

Halfords commented: “In our Q3 trading update on 14 January 2021, we highlighted a weaker like-for-like growth rate as we exited the quarter.

“This was due to regional lockdowns impacting motoring demand, as well as global container shortages and port disruption delaying stock arriving into the business.

“Although we have continued to experience a volatile trading environment across the first seven weeks of Q4, overall trading has been stronger than we initially anticipated across the business, and we now expect full year profit before tax to be within the range of £90m - £100m.

“Although only six weeks remain of FY21, the expected profit range remains quite broad as trading patterns continue to be volatile, with sales ahead of Easter particularly difficult to predict whilst the UK remains in lockdown.

“As the country starts to open up once more, our overriding priority remains the health and safety of our colleagues and customers.”