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Halfords knocked by weaker pound as half-year profits tumble | City & Business | Finance

The cycles and auto parts retailer, most of whose bikes and components are sourced from markets using the US dollar, took a £15 million currency hit as underlying pre-tax profit reversed 9.8 per cent to £36.8 million on 3.8 per cent higher sales of £588.7 million.

Halfords interim chief executive Jonny Mason said the company could benefit from the recent big drop in new-car registrations, as drivers hold on to their vehicles for longer and need help with maintenance jobs.

Mr Mason said in his statement to the media: “It is pleasing to report positive sales growth for this period, despite the poorer summer weather and the uncertainty in the UK economy.

“We are also pleased with our profit performance in the half, as we offset a large part of the (circa) £15 million increase in costs that resulted from the impact of the weaker pound.

“Looking ahead, we have strong plans both in-store and online for the cyber, Christmas and winter peaks.”

Shares fell 22p to 310¾p.


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