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(Alliance News) - Halfords Group PLC on Wednesday said its revenue growth in the 20 weeks to August 19 was helped by product price cuts, and reconfirmed its annual profit target.
Shares in the motor and cycling products retailer were 8.5% higher in London on Wednesday morning at 144.80 pence each.
Total revenue in the 20-week period was up 9.2% year on year, but like-for-like sales were down 1.9%. Halfords pinned the revenue slowdown on a surge in sales when the UK emerged from its final Covid lockdown.
"We are working extremely hard to help our customers with the cost-of-living crisis and have dropped prices across nearly 2,000 motoring essentials, ensuring that products remain accessible and affordable for all," Chief Executive Graham Stapleton said.
Like-for-like Autocentres revenue was up 19%, boosted by its expanding car repairs business, but Retail revenue fell 7.1%.
In December last year, Halfords grew its Autocentres operation with a GBP62 million takeover of Axle Group, owner of the National tyre servicing brand.
"Over 70% of our sales now come from motoring products and services, and the fact that this area of spend tends to be more needs-based rather than discretionary is leading to a very resilient group performance, despite the wider macroeconomic uncertainty," Stapleton added.
Looking ahead, Halfords has guided for its annual underlying pretax profit to be between GBP65 million and GBP75 million. Last year, it posted underlying pretax profit of GBP89.8 million.
The firm also noted its second half profit will top its first half.
"This is a result of the seasonality and growing scale of our Autocentres business, the National Tyres acquisition synergy profile, and the growth of our needs-based Motoring products business," Halfords added.
Halfords will release its interim results for the half-year to September 30 on November 23.
By Paul McGowan; paulmcgowan@alliancenews.com
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