Halfords annual profit down but eyes growth in new year

(Alliance News) - Halfords Group PLC on Wednesday lifted its annual dividend despite a fall in profit, though it expects bottom-line growth in the new financial year.

The motoring and cycling products retailer said revenue for the year ended on March 31 surged 15% to GBP1.59 billion, from GBP1.38 billion.

Pretax profit, however, was down 55% to GBP43.5 million from GBP96.6 million.

Total underlying costs increased by 16% to GBP721.7 million from GBP620.6 million the year before.

Chief Executive Officer Graham Stapleton said: “In a very challenging year, our focus has been on supporting both customers and colleagues through the cost-of-living crisis. Investment in competitive pricing and the value for money offered by our Motoring Loyalty Club, has enabled us to help more people with their motoring needs. This has led to an outstanding sales performance and significant market share gains."

It declared a final dividend of 7.0 pence per share, up from 6p a year prior. The full year dividend totalled 10p per share, up 11% from 9.0p a year prior.

Looking ahead, the firm expects year-on-year profit growth in financial 2024 and is comfortable with current analyst consensus of GBP53.3 million worth of underlying pretax profit. It added that trading since the start of the new financial year has been strong.

Shares in Halfords were up 5.5% at 202.20 pence each on Wednesday morning in London.

By Xindi Wei, Alliance News reporter

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