Halfords takes a dive as profits fall

Halfords’ new boss Jill McDonald disappointed investors today as she revealed profits would be flat next year as part of her strategy to keep growing the cycles and car parts retailer.

The shares dropped 8.9% to 391.7p despite a raised dividend and a slight reversal to a recent plunge in bicycle sales.

McDonald unveiled her Moving Up A Gear strategy, saying she will focus on investing in customer data. She said: “We can only match 3% of our sales to customers. We need to better match customers to sales to better understand customer needs.”

Store overhauls and improved service were also promised, as sales rose 1.8% to £533.5 million in the six months to October 2, although pre-tax profits fell 6.3% to £46.4 million.

Olympic gold medallist Sir Bradley Wiggins has been added to Halfords’ roster of endorsers, alongside Victoria Pendleton and Chris Boardman.