Halfords reports rise in revenue and profit for 2016

Caitlin Morrison
Follow Caitlin
UCI Track Cycling World Championships - Day Two
Olympic gold medallist Laura Trott is the company's newest collaborator (Source: Getty)

Motoring and cycling retailer Halfords has unveiled a new tie-up with an Olympic cyclist, as it reports an increase in revenue and profit in its preliminary results for the 2016 financial year.

The figures

Sales were up 1.5 per cent like-for-like, to £1.022bn from £1bn, with £869m coming from the group's retail operations, and £153m made through its autocentres.

Profit before tax rose by 0.5 per cent to £81.5m from £81.1m.

The company reduced its net debt by 22.5 per cent to £47.9m from £61.8m.

Halfords has proposed a three per cent hike to its full-year dividend, up to 17p per share from 16.5p.

What Halfords said

“This was a solid performance and we gained market share in both our motoring and cycling divisions. We also saw strong growth in our service-led offerings," said chief executive Jill McDonald.

"In cycling our sales improved in the second half of the year and cycle repair delivered good growth."

Meanwhile, the firm announced today that it was launching a new collaboration with Olympic gold medallist Laura Trott, to create a new range of limited edition performance bikes for women. Halfords has previously collaborated with Bradley Wiggins, Victoria Pendleton and Chris Boardman.

"The launch of our new Laura Trott range demonstrates the strength and breadth of our cycling proposition," McDonald said.

Halfords also recently bought bike business Tredz and specialist insurance firm Wheelies for £18.4m.