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Halfords sees profits jump as improvements pay off

Published 06/11/2014, 07:51
Updated 06/11/2014, 08:00
Halfords sees profits jump as improvements pay off
HFD
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LONDON (Reuters) - British car parts to bicycle retailer Halfords (L:HFD) posted a 10.8 percent rise in first half profit as a turnaround plan hinged on investment in staff, service and ranges bears fruit.

The group, which launched a 100 million pound investment programme last year aimed at boosting slumping sales, said on Thursday pretax profit for the 26 weeks to Sept. 26 rose to 49.4 million pounds, in line with forecasts.

Buoyed by the popularity of cycling in Britain and key sporting events such as the Tour de France starting in England, the group's core retail arm saw underlying first half revenue rise 6.8 percent, with cycling sales up 16 percent.

Sales at Autocentres open over a year rose 4.4 percent, with total group revenue up 6.8 percent to 524.1 million pounds.

Under chief executive Matt Davies the firm has looked to reinvigorate its customer service with better staff training. Stores have been revamped, marketing improved, and its cycling range broadened to include more models, clothes and accessories.

The firm, which trades from 465 Halfords stores and 298 Autocentres, is expected to post a full-year pretax profit of 81.64 million pounds according to a Thomson Reuters consensus forecast, up 12 percent on 2013/14.

Shares in the group closed at 503 pence on Wednesday, up 20 percent on a year ago, valuing the business at 1 billion pounds.

(Reporting by Neil Maidment; editing by Sarah Young)

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