Halfords profits plunge

A report in the London Evening Standard today (31 May 2012) states that Halfords – which sells one in four bikes sold in the UK – has had a very disappointing start to the year. The high street retailer of bikes and camping equipment saw it's profits plunge by 27% and shares slide 24.5p to 251.4p.

Halfords: the saviour of NoVisibleLyra on many occasions has experienced
a few financial problems, which CEO David Wild believes will pass.

Following the wettest April on record, writes Russell Lynch, the company is hoping that sales will pick up. According to Halfords CEO David Wild, the fact that the 'blip' involved sales of outdoor goods, such as bikes and camping equipment, means the problem should be short-term rather than long haul.

For the year to March, Halfords posted £92.2 million in pre-tax profits, down from £125.6 million last year.

Lynch explained that car maintenance products were down 4.5% as motorists drove fewer miles. Cold weather products, such as de-icer, screen wash and batteries were also down due to generally warmer weather conditions.

Halfords' big seller on the bike front is the Apollo, which sells for £100.