Profits accelerate at Halfords

19th Nov 2009 07:18

Bike and car parts chain Halfords has upped the interim divided by a fifth after increasing first half profit by 24%, and remains confident that business over the next six months will beat the previous year. Profit before tax for the 26 weeks to 2 October jumped to £60.9m from £49.1m in 2008 thanks to "sales and margin growth, operating cost discipline and reduced finance costs". Revenue was up almost 4% to £425.1m and by 1.7% on a like for like basis. The group has already said like for like sales rose 2.2% in the second quarter.The firm said that while it is still cautious about the economy and the impact upon consumer spending, especially in early 2010, it thinks full year earnings will be in line with expectations.Boss David Wild said car maintenance performed well in the second quarter, lifting market share, while cycling and camping products exceeded expectations, offsetting a tougher time abroad and weakness in satellite navigation.The interim dividend rises to 6p from 5p last time.An interim management statement is due on 14 January, covering trading for the 13 weeks ended 1 January.