Halfords has stated it expects to make a pre-tax revenue of as much as £40m for the primary half of its present monetary yr. Nevertheless, the listed enterprise has warned about its earnings 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 energy of biking and staycation merchandise throughout winter months alongside a tough financial outlook, its pre-tax earnings for the second six months could possibly be “considerably decrease”.
In a buying and selling replace for the 20 weeks to 21 August 2020, Halfords stated its group income was up 7.5 per cent, with retail up 3.8 per cent and autocentres surging 30.2 per cent.
Chief government Graham Stapleton stated: “This 20-week buying and selling interval began on 4 April and subsequently coincides with probably 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 wish to specific my honest gratitude to our devoted colleagues and constant clients for his or her assist and persistence throughout such a difficult time.
“We’re happy to have delivered a powerful buying and selling efficiency throughout the interval.
“We’ve got been in a position to transfer rapidly as a way to capitalise on the continued sturdy demand for biking merchandise, with gross sales of electrical bikes and scooters up 230 per cent year-on-year, whereas biking companies 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 progress in our motoring enterprise, pushed by a rise in automotive journeys and by a excessive stage of demand for staycation-related merchandise akin 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 we’ve got tripled our funding within the ongoing growth 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 complete income within the interval.
“We’ve got additionally reaped the advantages in motoring companies of a extra scaled operation, a gaggle 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 sturdy double-digit progress.
“Nevertheless, there may be nonetheless vital uncertainty across the affect 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.
“Wanting additional forward, we’re assured within the long-term technique of our enterprise and within the progress prospects of the biking and motoring markets through which we function.”