Halfords reports total revenues up 6.3% to £567.3m with a pretax profit of £39.1m

Bicycles and car parts retailer Halfords Group PLC on Thursday reported a fall in pretax profit due to acquisition-related cost rises, but said revenue grew and it remains on track for its full year.

The mid-cap company said it made a pretax profit of GBP39.1 million in the 26 weeks to September 30, down 16% from the GBP46.4 million it made a year before due to one-off costs and higher operating expenses related to the acquisition of bicycle retailer Cycle Republic, and the opening of new Cycle Republic stores.

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Pretax profit without exceptional items, however, also fell, down 12% year-on-year to GBP40.8 million, driven by a 275 basis point decline in its retail gross margin, partly as a result of the depreciation of sterling, to 47.6% from 50.3%. The group invested in its services-related sales in the first half, which resulted in sales from this channel rising 14% year-on-year, but with higher related costs.

Total revenue for the group increased to GBP567.3 million from GBP533.5 million, up 6.3% and growing 2.2% on a like-for-like basis. Retail like-for-like revenue was up 2.4% while Autocentres like-for-like revenue was 0.9% higher.

Halfords declared an interim dividend of 5.83 pence per share, up 3.0%from the 5.66p paid a year prior.

Halfords said it remains confident it will meet market expectations for the full year to March 2017.

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