Halfords to repay £10.7 million of furlough income as sales grow

Halfords has updated the market on its recent trading performance, with full year profit before tax expected to be within the range of £90 million-£100 million.

The board has therefore taken the decision to repay in full £10.7 million of furlough income received, and the profit range is after this repayment.

For the first seven weeks of Q4, from 2nd January-19th February, group LFL growth was 6.2%. Cycling has seen LFL growth rates improve as supply disruption has eased, although overall supply remains ‘sub-optimal’, the retailer said.

Cycling LFL over the period was 43%, with Halfords’ exclusive range of kids and adult mechanical bikes performing well, it said, along with performance cycling business Tredz seeing growth of 60% LFL in the period.

“Although only six weeks remain of FY21, the 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,” said a statement. “As the country starts to open up once more, our overriding priority remains the health and safety of our colleagues and customers.”

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