Halfords cashes in on cycling trend

Jun 5 2008

Halfords said today it was benefiting from a “resurgent” cycling market as more commuters swapped their cars for bikes to get to work.

In another sign of pressure on household budgets, the retailer said its car maintenance arm was performing strongly as new car sales slowed and drivers opted to keep older models on the road.

Halfords, which owns Bikehut and sells brands including Apollo and Carrera, posted an 11.5% hike in pre-tax profits for the year to March 28, with sales 7.2% stronger at £797.4 million. Sales were 4.3% higher on a like-for-like basis.

Acting joint managing director Paul McClenaghan said: “We have seen a resurgence of bicycle sales in the UK. People tend to be riding more often, both commuting and for leisure.” The Worcestershire-based chain accounts for one in three of all bicycles sold in the UK.

There was no detail on Halford’s current trading, with management saying the business was “broadly” where it expected to be.

Halfords also said there was the potential to add another 100 stores to its near 450-strong estate in the UK and Ireland.

The company’s shares were up 2% today.