(Alliance News) - Halfords Group PLC on Wednesday said its interim profit doubled, with the cycling and motoring products retailer benefiting from being deemed an essential service provider during UK lockdowns.
Looking ahead however, Halfords was more cautious about its second half, citing usual "seasonality" concerns combined with Covid-19 uncertainty.
Revenue in the six months ended October 2 jumped 9.6% year-on-year to GBP638.9 million from GBP582.7 million. On a like-for-like basis, revenue was 6.7% higher.
The company's pretax profit more than doubled to GBP55.4 million from GBP27.5 million a year earlier.
"We are very pleased to have achieved such a strong first half performance against the backdrop of one of the most challenging trading environments in recent history. It is a great testament to the strength and adaptability of our business, as well as to the professionalism, hard work and dedication of our colleagues," Chief Executive Officer Graham Stapleton said.
"We have worked hard to capitalise on the cycling market tailwinds by sourcing more stock from existing and new suppliers, as well as launching new products and brands to serve the high level of demand for our cycling products and services."
Stapleton added: "As an essential retailer and service provider, we are proud to be able to help keep the UK moving during these exceptionally challenging and uncertain times."
In its retail arm, revenue was up 4.8% while its autocentres, its car servicing and repair unit, saw 39% growth.
Halfords added: "Trading for the first five weeks of H2, to November 5, 2020, continued to be relatively strong, with good growth and increased market share in cycling, alongside resilience in our motoring products and services businesses. Since November 5 we have seen some impact on trading as the second national lockdown came into force.
"Cycling has continued to grow; we saw an immediate upturn in our Mobile Expert business; and we have seen another shift towards our digital and home delivery channels. However, sales of motoring products have been impacted, with government data showing car traffic last week at 70% of pre-Covid-19 levels. Unlike the previous lockdown, we have been able to plan and mitigate against some of this risk early."
Halfords decided against offering profit guidance, citing the latest lockdown, an uncertain trading environment and the outcome of brexit talks. The company also noted the "seasonality of our business".
The company explained that while its earnings are not "not seasonal with revenue in the first half broadly similar to that of the second", sales of some products tend to fluctuate during different times of the year. Halfords noted for example that sales of adult bicycles peak in the summer, but for children, it peaks during the Christmas trading spell.
Halfords shares were 3.5% lower at 253.36 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Halfords (HFD)