Bike and car part retailer Halfords PLC (LON:HFD) reported a weaker cycling market but said its car products and services underpinned higher profits.
Cycling like-for-like sales fell 0.9% as bad weather and rival price-cutting hit demand, particularly in July and August last year, although sales started rising again in the second half.
Overall retail sales rose 1.2% to £868.5mln in the year to April 1, driven by a 2.5% increase in car accessory sales.
Service-related sales increased 8.5%, driven in particular by cycle repair and elements of motoring fitting, such as audio and roof boxes.
Total Autocentre revenue was up 4.1% and 2.5% on a like-for-like basis.
Gross margin improved 90 basis points in the year, reflecting a lower tyre mix and higher service, MOT and repair margins.
Group underlying pre-tax earnings before interest, depreciation and amortisation (EBITDA) rose 4.3% to £114.6mln.
The company plans to pay a final dividend of 11.3p per share versus 11p a year ago which, if approved, would take the full-year dividend to 17p per share, up 3% against last time.
Chief executive Jill McDonald said: “The weather was not helpful, with both a wet summer and a mild winter, including the warmest December since records began.
“Despite this, the motoring side of our business, which contributes around 70% of group sales, was resilient.”