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High Street

Halfords predicts £100m profit amid cycling boom

Additionally, the board revealed that it has taken the decision to repay in full the £10.7m of furlough income received

Halfords has announced it expects pre-tax profit in its full-year results to range between £90m-£100m, after reporting “better than expected” Q4 trading results amid strong sales in its cycling business.

For the first seven weeks of Q4, from 2 January to 19 February 2021, the group experienced a like-for-like growth of 6.2%, a 5.2% growth in retail and 13.3% growth in autocentres.

The group said that although it has experienced a “volatile trading environment” across the first seven weeks of Q4, overall trading has been stronger than it was “initially anticipated” across the business.

The group’s cycling like-for-like growth over the period was 43%, with the company’s range of kids and adult mechanical bikes performing well, along with a “strong performance” it the groups cycling business, Tredz, which saw a 60% like-for-like increase in the period.

In light of its strong trading, the board revealed that it has taken the decision to repay in full the £10.7m of furlough income received.

Looking ahead, the group said that its expected profit range remains “quite broad” as trading patterns continue to be volatile, with sales ahead of Easter “particularly difficult to predict” whilst the UK remains in lockdown.

The next planned trading update will be announced on 17 June 2021.

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