Halfords Group PLC (LSE:HFD) were little moved as the bicycles and car parts retailer reported results in line with upgraded guidance, and said trading was on track with expectations at the start of its new year.
In preliminary results for the 52 weeks to 28 March, profit before tax rose £38.4 million, up 6.4% year-on-year, in line with the upgraded April guidance for profits to be at the top end of the £32-37 million range.
Group sales rose 2.5% on a like-for-like basis.
Gross margin was expanded 250 basis points, helped by £35 million of cost savings, while £43 million of free cash generation led to a net cash position at year-end.
Trading in the early weeks of the new year has been "in line with expectations", the FTSE 250 company said.
It also reiterated that it plans to offset another year of elevated inflation "through a combination of pricing, buying and cost opportunities" and continues to be "somewhat cautious on the outlook for consumer spending".
Analysts at Panmure Liberum said they understand April saw strong momentum, though May was slightly softer. "Motor servicing revenues continue to perform well, while tyre revenues remain subdued."
Halfords said it aims to make further progress towards the target of circa 150 Fusion store formats, which integrate motoring services across local stores and garages, delivering at least 60 in the current year and the balance the year after, with an average capex of £200k per site.