Halfords celebrate as year profits rise
Written by Editors Choice    Wednesday, 10 June 2009 09:33    PDF Print E-mail
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Buckling the trend, Halfords gains from recession as car maintenance and bike sales increase. Car maintenance and bicycle retailer Halfords Group Plc (HFD.L) posted an expected 2.4 percent rise in full-year profit and said it was on track for further growth.
Halfords celebrate as year profits rise

"We naturally remain cautious given the continued fragility of the economy and consumer confidence. There are however, clear indications that Halfords is well positioned to deliver further earnings growth in the year ahead," said chief executive David Wild.

Halfords, which runs about 460 stores, said profit before tax and one-off items was 92.4 million pounds ($149 million) in the 52 weeks to March 27. That was in line with company guidance of 92-92.5 million pounds.

Halfords said it increased market share despite a 0.3 percent fall in revenue to 795 million pounds. Its gross margin was up 160 basis points.Many British retailers have struggled over the past year as shoppers curb spending amid rising unemployment, sliding house prices and fears of a long and deep recession.

Halfords has fared better than most, thanks to its exposure to less discretionary areas of spending, such as car maintenance, as well as the growing popularity of cycling. The introduction of front shop foreground maintained where staff fit purchased car radios, batteries, mirrors and other accessories have added considerably to the groups profits.

The group reduced its year-end net debt by 9.7 percent to 164 million pounds and raised its total dividend payment by 5.3 percent to 15.9 pence.

Wild said he saw "significant" opportunities for future growth within the British business.

Shares in Halfords have increased in value by 23 percent over the last year, outperforming the general retailers index .
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Some investors are still unhappy with M&S's test
Test There are also signs of a broader recovery in British consumer spending, with a survey earlier on Tuesday showing British retail sales in September rose at their fastest annual pace for five months.
mook Scott , November 04, 2009

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