British retailer Halfords posted an expected 13 per cent rise in first-half profit, as margin gains and cost savings offset a short term hit to sales from a new distribution centre.
The group, which runs over 460 Halfords stores and the 240-site Nationwide Autocentres car servicing business acquired in February, said today it expected profit for the full-year to be within the range of market expectations.
Halfords made a pretax profit of £68.7 million in the six months to October 1st.
That compares with company guidance of £67-£69 million and £60.9 million made in the same period last year.
Group revenue increased 7.3 per cent to £456.3 million, although sales at stores open over a year fell 4.9 per cent reflecting teething problems at the new distribution warehouse in Coventry.
Halfords' gross margins were up 35 basis points, with currency and inflation headwinds offset by better buying and sales of higher margin accessories.
The firm said trading conditions have remained challenging in the six weeks since the end of the half-year with like-for-like sales down 5 percent at Halfords but up 1.2 per cent at Autocentres.
Halfords raised its interim dividend by a third to 8.0 pence.
Shares in Halfords have fallen 14 per cent in the last three months, underperforming a 9.3 per cent rise in the UK general retailers index.
Reuters