Halfords profits jumped as the retailer was buoyed by continued growth in its motoring and autocentres businesses. The London-listed company reported a 49.8 per cent increase in pre-tax profits to £96.6 million (€112.1m) for the year to April 1st compared with the previous year.
It added that this also represented a 325 per cent rise on the £22.7 million profit it posted in the 2019-20 financial year, before the full impact of the pandemic.
Meanwhile, total revenues increased by almost a fifth to £1.37 billion compared with pre-pandemic levels.
Retail motoring sales grew by 6.5 per cent, while its cycling business saw sales up 2.7 per cent against two year ago but tumbled significantly lower against last year after a cycling boom during the pandemic.
Halfords added that its bike business also witnessed “supply chain disruption during the period”.
The company told shareholders that its expects pre-tax profits to be lower in the new financial year, at between £65 million and £75 million, amid economic uncertainty.
The group said it faces the prospect of “reduced demand, particularly for more discretionary, higher ticket items, and significant cost inflation” potentially affecting its performance.
Meanwhile, Halfords chief executive Graham Stapleton accused the British government of taking a “backwards step” with its decision to end the plug-in car grants scheme. The British government confirmed on Tuesday that it is scrapping the £1,500 subsidy for purchases of new electric cars.
The UK department for transport said it will “refocus” funding to encourage users of other vehicles to make the switch to electric as a result. However, Mr Stapleton said the move will delay the transition towards the greater use of electric vehicles. “Until now, we have been greatly encouraged by the government’s commitment to making the transition to electric cars. However, the sudden and complete removal of the plug-in subsidy is a backward step. It will delay mass adoption at a time when we need to be doing everything we can to help people to choose greener transport options.”
Mr Stapleton said Halfords was writing to the British secretary of state for transport to ask him to reconsider. – PA
