BICYCLE and car parts retailer Halfords today announced a 25 per cent drop in pre-tax profits, attributed to rising costs.
Pre-tax profits after non-recurring items fell 25 per cent to £71m.
However, group revenues grew one per cent.
The firm plans to reposition its retail business and invest £100m over the next three years.
“The fall in group profitability illustrates the pressing need for sustainable revenue growth to offset ongoing cost inflation,” said chief executive Matt Davies.
“Today I am announcing our 'Getting Into Gear 2016' plan, designed to significantly improve our retail customer experience and bring about sustainable and profitable sales-growth momentum.”