Halfords has today announced a 20.4% fall in half-year pre-tax profits to £54.7m, a loss that is attributed to cash-strapped motorists that are cutting back on service and maintenance as a result of ever-rising fuel and insurance costs.
Despite bicycle sales continuing to grow, revenue also fell by 0.5% to £454m in the six months to September 30.
David Wild, chief executive of Halfords, comments: “It is impossible to predict when trading conditions will ease. Motorists continue to be affected by inflationary rises in fuel and insurance costs, so their spending on maintenance has been subdued.
However, he remains positive about the future, adding: “The strength of our balance sheet and our cash generation mean that we are maintaining our interim dividend whilst continuing to return cash to shareholders through our share buyback programme.