Halfords ups divi after profit rise

10th Jun 2009 07:01

Bike and car parts retailer Halfords upped its dividend after delivering a slightly better than expected 2.4% rise in full-year profits.Profit before tax and exceptional items for the 52 weeks to 27 March was £92.4m compared with the previous year's £90.2m. Market consensus was for adjusted profit before tax of £91.5m.Profits rose despite a 0.3% drop in revenue to £794.7m, also better than the expected £790m, with like-for-like sales down by 3.3%.The car maintenance business delivered strong like-for-like sales growth, allowing the group to continue to grow its market share, while the cycling arm benefited from range development and government initiatives.Halfords recommended a final dividend of 10.90p, making a total of 15.90p per share, up 5.3%"We naturally remain cautious given the continued fragility of the economy and consumer confidence," said chief executive David Wild."There are however, clear indications that Halfords is well positioned to deliver further earnings growth in the year ahead," he added.The group plans to open 15-25 new outlets in the current year.