Halfords revenues rise due to acquisition

Cycling and motoring retailer Halfords increased revenue due to growth in bike sales and a recent acquisition.

For the five months ended 19 August, revenue increased by 4.8% as retail revenues rose 4.8% while those from autocentres jumped 4.6% when compared to the same period last year. Services related sales grew 13.9%.

Like-for-like revenue grew 1.2%, split between a 1.1% gain in like-for-like revenues for retail and a 1.8% increase at autocentres.

The FTSE 250 listed company said strong cycling sales in July and August was helped by new ranges and promotions, which offset the slower sales earlier in the year. Premium bike sales continued to grow throughout the year to date.

Total cycling sales rose by 11%, due to Cycle Republic store openings and the addition of premium bike retailer Tredz, which the company bought in May. Improved parts, accessories and clothing sales were up 6%

Growth in car maintenance was driven by bulbs, blades and batteries and new motorcycle ranges. Dash cam sales growth was “strong”, but was offset by the decline in sales of satellite navigation systems.

Sales growth in travel solutions was largely driven by child safety seats and roof boxes.

Chief executive Jill McDonald said: “Motoring sales were robust, driven by car and motorcycle parts, roof boxes and child seats. Good growth in cycling sales during the peak summer period was supported by new ranges, strong promotional activity, good weather and the success of Halfords' Olympic cycling heroes.

“We continue to make good progress on our strategic initiatives; we can now match 25% of our retail sales to specific customers compared to only 3% last year and in recent weeks we have successfully piloted contactless payments and also launched the new Cycle Republic website."