Halfords forecasts H1 pre-tax profits of £55 million as cycling momentum continues

Halfords has reported continued growth in cycling, up 46% like-for-like in the five-week period to 25th September.

H1 profit before tax is expected to be in excess of £55 million, as a result of the momentum in cycling and motoring products and services.

The retailer’s 20-week trading update on 8th September highlighted an improving growth trend throughout the period, reflecting continued strength in cycling and a return to growth in motoring products and services. Despite the peak cycling and staycation season coming to an end, this positive momentum has continued, Halfords said.

Group like-for-like growth in the five weeks to 25th September was 22%. The 46% rise in cycling reflects “the strength of our unique proposition and continual improvement in supply to meet unprecedented levels of demand”, the retailer said.

Halfords said it now expects profit before tax for H1 FY21 to be in excess of £55 million. “We do, however, remain cautious in our outlook for H2,” the retailer continued. “The potential impact of second waves of COVID-19 now seems more pronounced than just a few weeks ago, and the economic impact of an end to the furlough scheme and the outcome of Brexit negotiations remains very uncertain.

“We are well placed to address any headwinds we may face and capitalise on the tailwinds as they arise. Our balance sheet and liquidity position remain strong.”

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