Halfords profits soar in ‘very strong’ first half

Halfords’ underlying profits rocketed 116% to £56m in the period, when group sales climbed 6.7% like-for-like to £639m.

Retail like for likes climbed 8.1% to £524m, while cycling revenues rose 54% like for like in the period to October 2.

Halfords, which is designated an essential retailer so is still trading during the current lockdown, said in the first five weeks of the second half to November 5 sales had ”continued to be relatively strong, with good growth and increased market share in cycling, alongside resilience in our motoring products and services businesses”.

Since then Halfords reported that it had “seen some impact on trading as the second national lockdown came into force”.

The retailer said cycling has continued to grow, that there was an “immediate upturn” in its Mobile Expert business and “another shift towards our digital and home delivery channels”.

However, sales of motoring products have been hit as car traffic fell from pre-Covid-19 levels. 

Halfords chief executive Graham Stapleton said: “We are very pleased to have achieved such a strong first-half performance against the backdrop of one of the most challenging trading environments in recent history. It is a great testament to the strength and adaptability of our business, as well as to the professionalism, hard work and dedication of our colleagues.

“We have worked hard to capitalise on the cycling market tailwinds by sourcing more stock from existing and new suppliers, as well as launching new products and brands to serve the high level of demand for our cycling products and services.

“Despite the headwinds we have seen in motoring, with UK traffic 30% lower than pre-Covid-19 levels and the impact of the MOT deferment, our ‘Road Ready’ campaign and the investments we have made in our motoring services business have enabled us to increase market share and grow the business in quarter two.”