Increased costs caused by the depreciation of sterling took a £6mln chunk out of earnings at bike and car parts retailer Halfords Group PLC (LON:HFD). Pretax profits fell almost 16% to £40.8mln in the six months ended September 30 on revenues of £567.3mln (up 2.2%). Further pressure on on the bottom-line was exerted by summer discounts on bikes and investment in training and pay as part of the firm's Gears programme. The latest results also factored in a contribution from the recently-acquired online business Tredz and Wheelies, which is a lower margin business. Despite hitting reverse gear in the first-half, Halfords said its full-year numbers would be in line with market forecasts. Chief executive Jill McDonald described the sales performance as "strong" and said it improved through the period. But she warned the tumble of the value of the pound post-Brexit will continue to "bring cost headwinds". The business generated free cash of around £24mln and was sitting on net debt if almost £65mln. Halfords will pay a dividend of 5.83p a share, up 3% on the year earlier.
Halfords says Brexit takes £6mln chunk out of earnings
Chief executive Jill McDonald described the sales performance as "strong" and said it improved through the period. But she warned the tumble of the value of the pound post-Brexit will continue to "bring cost headwinds".