SatNav guides Halfords aloft

STRONG demand for satellite navigation and in-car entertainment systems have given a big boost to profits at Halfords, the car parts and bicycles group. In its first set of results since floating last June, Halfords reported a surge in interim profits from £9.8m to £26.5m. At the operating level, the increase was 18%, to £46m, excluding goodwill and exceptionals.

Turnover for the 26 weeks to 1 October was ahead by almost 13% to £322.7m, with a double-digit increase in like-for-like sales of 10.8%. There is a first time dividend payment of 3.7p.

Chief executive David Hamid said the group benefited from the growing trend for motor buffs to lavish money on their cars. Its fitting service for phones and audio systems also continues to expand. The car maintenance business produced 'steady' growth and there was another strong performance in cycles and cycling accessories.

Part of Boots until it was bought out by venture capitalists in 2002, Halfords now has a chain of almost 400 shops and opened 10 new stores over the first half.

It is also converting a number of stores to 'supermezzanine' format and is on track to complete 35 conversions in the current year.

Hamid said: 'We have delivered a good set of results and continue to develop and position the business for ongoing growth.'