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The Markets
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The Markets
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Proactive UK has moved.
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Retail

Halfords gets into gear as sales pedal past £1bn

Under former boss Matt Davies, Halfords underwent an overhaul called ‘Getting into Gear’ that improved staff training and revamped stores to give them a greater focus on bikes.

Halfords (LON:HFD) has seen its annual revenues pedal past £1bn for the first time thanks to a customer service push and new cycle ranges.

In the first update since new boss Jill McDonald joined from McDonald's in May, replacing Matt Davies, the firm said sales at its cycling division were up 11.4%.

That helped overall revenues rise 6.9% to just over £1bln for the year, while pre-tax profit in the 12 months to 27 March climbed over 11% to £81.1mln.

The group - which runs 470 stores and 305 Autocentre car repair units - also proposed a full-year dividend of 16.5p, up 15.4%.

Under former boss Davies, now at Tesco, Halfords underwent an overhaul called ‘Getting into Gear’ that improved staff training and revamped stores to give them a greater focus on bikes.

Today, chairman Dennis Millard said the strategy was progressing well.

Keith Bowman at Hargreaves Lansdown said: “Initiatives implemented by the recently departed chief executive continue to generate progress."

"Both profits and the declared increase in the dividend payment are ahead of forecast.

“Investments in staff training, revamped stores and enhanced product availability all look to be paying off, whilst a change of leadership made at its Autocentres business is showing early promise," he added.

Shares are 4p higher at 489p and riding back up to £5 - a level not seen since 2010.

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