Halfords warns on second half income
Halfords has mentioned it expects to make a pre-tax revenue of as much as £40m for the primary half of its present monetary yr. Nonetheless, the listed enterprise has warned about its income for the second half.
The Redditch-headquartered firm added that “vital uncertainty” stays for the second half of its yr and that, “given the pure fall-off within the relative power of biking and staycation merchandise throughout winter months alongside a troublesome financial outlook, its pre-tax income for the second six months may very well be “considerably decrease”.
In a buying and selling replace for the 20 weeks to 21 August 2020, Halfords mentioned its group income was up 7.5 per cent, with retail up 3.8 per cent and autocentres surging 30.2 per cent.
Chief govt Graham Stapleton mentioned: “This 20-week buying and selling interval began on 4 April and subsequently coincides with essentially the most vital impacts of Covid-19 within the UK.
“Our primary precedence has all the time been the well being, security and wellbeing of our colleagues and clients, and on behalf of our board, I want to categorical my honest gratitude to our devoted colleagues and dependable clients for his or her help and endurance throughout such a difficult time.
“We’re happy to have delivered a powerful buying and selling efficiency in the course of the interval.
“We’ve got been in a position to transfer rapidly with the intention to capitalise on the continued robust demand for biking merchandise, with gross sales of electrical bikes and scooters up 230 per cent year-on-year, whereas biking providers have been boosted by our free 32-point bike verify and the federal government’s Repair your Bike Voucher scheme.
“We’ve got additionally seen a return to development in our motoring enterprise, pushed by a rise in automotive journeys and by a excessive stage of demand for staycation-related merchandise similar to roof bars and roof packing containers.
“It has been particularly encouraging to see our investments in key strategic initiatives each drive, and allow, such a resilient efficiency, permitting us to capitalise on beneficial market shifts.
“Within the final 12 months now we have tripled our funding within the ongoing improvement of our net platform to allow a dramatic shift to on-line ordering, with gross sales up 160 per cent year-on-year and representing 54% of whole income within the interval.
“We’ve got additionally reaped the advantages in motoring providers of a extra scaled operation, a bunch net platform, a best-in-class digital working mannequin in our garages and a brand new media marketing campaign to boost consciousness of our distinctive proposition.
“And our strategic give attention to B2B channels continues to drive robust double-digit development.
“Nonetheless, there may be nonetheless vital uncertainty across the impression of Covid-19 and the macro-economic atmosphere within the coming months, and in consequence we’re cautious on the outlook for the rest of this yr.
“Trying additional forward, we’re assured within the long-term technique of our enterprise and within the development prospects of the biking and motoring markets through which we function.”