Halfords' revenues and earnings rise as improvements pay off

Bike and car accessory retailer Halfords experienced good growth in cycling, car maintenance and online retail sales, resulting in a 6.8% rise in revenue to £524.1m in the six months to September 26 against a year ago.

Retail sales grew by 6.6% and in Autocentres by 8.4% during the period, with cycling sales up 16% and online sales up 13.7%.

The popularity of cycling in Britain, as well as key sporting events such as the Tour de France starting in England are thought to have boosted growth.

Group underlying earnings for the period were £63.6m, 6.7% higher than £59.6m in 2013. Pre-tax profit rose to £49.4m, up 11.2% from £44.6m.

Earnings per share stood at 20.2p in the six months to September 26 2014, up from 17.6p last time. EPS in the year to March 28 were 28.6p. Cash and cash equivalents at the end of the six months to September 26 2014 stood at £27.3m, up from 23.7m. The interim dividend rose 5.8%, from 5.2p to 5.5p.

Chief executive Matt Davies said: "This was a strong performance against particularly tough comparatives and we are pleased overall with the progress we are making under our 'Getting Into Gear' retail plan.

"A strengthened cycling offer was underpinned by the acquisition of Boardman Bikes, whilst Halfords continued to build its auto credentials with the launch of Car Parts Direct. The supply chain and IT infrastructure improved further and refreshed stores performed in line with expectations.”

"Autocentres had an improved sales performance, with new management focused on the motorist experience. I look forward to a second half where we will continue to position Halfords to deliver sustainable profit growth."

At 11:59, Halfords shares were 23.3p or 4.6% down at 479.7p in London.