Halfords steps up sales a gear

CAR parts and bicycles group Halfords continues to defy the High Street gloom, reporting a huge profits surge in its first full-year results since floating a year ago.

Pre-tax profits for the year to 1 April more than doubled to £64.1m, while operating profits were ahead almost 20%, at £78.3m. Sales for the year were 8.6% better at £628m, with a like-for-like increase of 8.9%.

Although no figures were given for current trading, chief executive Ian McLeod said he was confident that the group would continue to deliver 'positive results' despite the generally challenging retail environment.

He said growth had been seen in all four key areas - car maintenance, car enhancement, cycling and travel solutions.

Halfords now trades from 398 stores, including 18 new outlets and relocations during the year.

Its rollout of so-called supermezzanine stores continues, rising from 11 to 57 by the end of March. This type of store typically adds some 40% to selling space and has generated 'significant' like-for-like sales increases.

A further 35 conversions are planned this year, adding more than 100,000 square feet of selling space without increasing rent levels.

Halfords is the biggest player in the £1bn-a-year car parts market and McLeod highlighted the success of the group's We'll Fit It programme, which saw it install almost 1m products last year, ranging from car parts to child seats, CD and DVD players and satellite navigation equipment.

There was a big increase in demand for satellite navigation equipment, for which prices have dropped over the past 18 months from as much as £1000 to as little as £300.

The group's Bikehut brand accounts for more than one in every four bicycles sold in the UK and it has seen accelerating sales for top-of-the-range and specialist models.