Halfords reports in-line results but bemoans weather

Retailer and car maintenance group Halfords revealed that it will deliver profits in line with expectations for the year to end-March, although the extended winter had dampened sales in the new period.

Retailer and car maintenance group Halfords revealed that it will deliver profits in line with expectations for the year to end-March, although the extended winter had dampened sales in the new period.

The car and bike specialist said the prolonged winter had resulted in a year-on-year change in the sales mix in the period that boosted its car maintenance operations, but had a "marked dampening effect" on outdoor-focused sales such as cycling.

On the down side, travel solutions sales were weak, car enhancement sales were flat and fleet sales remain under pressure at its autocentres arm, which opened 12 centres opened in the period.

More happily, car maintenance delivered a strong performance with parts sales up 26.3% and fitting penetration up 10.6% points to 39.4%, benefiting from the new 'wefit' strategy.

For the year just passed, to March 29th, management revealed that they anticipate profit before tax will "remain in line with prior assumptions within the range of £68-72m" and that the group's financial position is "sound".

Chief Executive Matt Davies 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 23rd."

OH

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020