Halfords profits shrink due to weakened pound

In its latest financial update Halfords has pinned a decline in profits on the weakened pound.

Despite a revenue rise to £1.135Bn, a 3.7% rise on the same period last year, profit before tax declined 6% from £71.4 million last year to £67.1m in this round of financial results.

As a result of a weaker pound against the US Dollar the business reported an additional £25 million in additional costs, primarily on imported goods.

The results, which come in tandem with the news that ex-British Airways boss Keith Williams has joined as Chairman, have shaken investors in the bike and car parts giant with shares dipping 14% as markets opened today.

Despite the negatives, like-for-like sales growth of 2% was achieved against a difficult backdrop for retail. Motoring sales rose 1.9% while cycling added 2.9% on a like-for-like basis. Today’s statement flags electric bike sales and repairs as key revenue drivers.

Boss Graham Stapleton said: “We are pleased with the full-year 2018 performance in a challenging retail environment, with profits in line with expectations.

“By focusing more on our specialisms and our services, ensuring that we always provide best value to our customers and presenting a more seamless and inspirational omni-channel experience, there is a really exciting future of growth ahead of us.”