Shares in auto spares and bike seller Halfords (HFD) gained 14.7% to 319.6p as it upgraded its full-year outlook after a strong set of first half results.
The company’s shares had wobbled since the summer as the pandemic-led cycling boom lost some momentum and the company was beset by supply chain issues.
However, investors were won over by today’s statement as the company increased its underlying pre-tax profit guidance for the 12-month period to April 2022 to between £80 million-and-£90 million, up from £75 million previously, citing good sales momentum and the easing of supply chain disruption.
For the 26 weeks to 1 October 2021, pre-tax profit rose 36.8% to £64.3 million year-on-year as revenue increased 19.2% to £694.8 million.
Growth was led by motoring service, which grew 6.2%, driven by ‘market share gains in core categories and strong demand for staycation products, up 45%,’ the company said. Halfords also observed it had good availability of bikes heading into Christmas.
ELECTRIC VEHICLE BOOST
Chief executive Graham Stapleton was keen to emphasise the company’s alignment to the growing electrification of transport.
He said: ‘We are seeing significant growth in the number of customers choosing electric forms of transport, and we continue to have a market-leading position in the servicing and repair of electric vehicles. Sales of e-bikes, e-scooters and accessories grew by more than 140% on two years ago, and servicing for electric cars in our garages was up 120% year-on-year.
‘We have already invested in the training of more than 1,300 electric technicians and are on track to train 2,000 by the end of FY22, equating to more than two per store or garage. This number will double next year.’
