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Halfords revenues rise, offsetting impact of weaker pound

Halfords said full-year profit will be in line with market expectations and all financial guidance remains unchanged.
Halfords store
Halfords increased its interim dividend by 3% to 6p per share compared to 5.83p in the same period last year.

Halfords Group plc (LON:HFD) reported higher group revenue in its first half ending September 29 but noted a £15mln dent due to the weaker pound.

The retail business generated some £511mln while autocentres brought in £77.7mln, taking group revenue to £588.7mln, up from £567mln in the comparative period of 2016.#

READ: Halfords names boss of Dixons Carphone's software business as its new CEO from January next year

Earnings (underlying EBITDA) amounted to £54.9mln, down from £57.1mln.  The company reported profit before tax (after non-recurring items) of £36.6mln, representing a 6.4% decline from £39.1mln.

Halfords has, however, increased its interim dividend by 3% to 6p per share compared to 5.83p in the same period last year.

It added that full year profit will be in line with market expectations and that all financial guidance remains unchanged.

"We have delivered more improvements for our customers in this first half, with new services for motorists and cyclists, provided by trained, friendly, expert colleagues, and new ranges of great products,” said Jonny Mason, Halfords chief financial officer and interim chief executive.

READ: Liberum Capital ups rating for Halfords to ‘hold’ from ‘sell’ in wake of retailer's latest trading update

“It is pleasing to report positive sales growth for this period, despite the poorer summer weather and the uncertainty in the UK economy.

“We are also pleased with our profit performance in the half, as we offset a large part of the c.£15m increase in costs that resulted from the impact of the weaker pound. Looking ahead, we have strong plans both in-store and online for the cyber, Christmas and winter peaks."

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