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Pedal power sends Halfords soaring

Last updated: 20:34 07 Nov 2013 AEDT, First published: 21:34 07 Nov 2013 AEDT

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Pedal power has put Halfords’ (LON:HFD) recovery in the fast lane as bike sales surged thanks to sunny weather and a shed full of gongs for British cyclists. 

Shares in the bike and car parts chain leapt over 12% as sales in the six months to September jumped by 6.2% on a like-for-like basis to £490.6mln. Profits were 5% higher at £44.6mln.

Halfords has renewed its focus on cycling and this business was the stand-out performer in the half buoyed by the hot summer and success of British cyclists Sir Bradley Wiggins, Sir Chris Foy, Victoria Pendleton and Laura Trott.

Cycling revenues rose by over 14% on a like-for-like basis, with the cycle repair business revenues over 27% higher and a new range of upmarket Boardman and Pendleton branded bikes also chipping in.

“The work we have undertaken on stock availability, the product ranges, marketing and events meant that we took advantage in the first half of what were undoubtedly more-favourable weather conditions for cycling,” said chief executive Matt Davies.

Car maintenance also went well over the half, with sales 8.8% higher as people flocked to have bulbs, blades and batteries (3Bs) behind the improvement. The number of 3B fitting jobs rose by 25.5% to around one million in the period.

Autocentres performance was the one weak spot with sales 2.1% lower. A new Autocentres chief executive will be appointed Halfords said.

The interim dividend fell by 35% to 5.2p in line with prior guidance.

Shares rose 54p to 472p.


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