Foreign-made bikes cost Halfords £25m

HALFORDS is facing a £25m hit from the slump in the pound because it ships its bikes into the UK from overseas.

Reporting a 9.8pc slide in interim profits, the company said the fall in the value of sterling cost it £15m in the first half of the year, and will cost it another £10m in the second half.

That is because most bikes Halfords sells are made overseas.

The slide in the pound since the Brexit vote makes it more expensive to import these bikes, forcing it to increase the cost of some of its products. Total cycling sales were up 7pc.

While some bikes are made in Britain, they tend to be very high end or specialist, such as Brompton folding bikes, and are not part of Halfords’ main offering.

It reported a 3.8pc rise in revenues in the first half to £588.7m but profits fell from £40.8m to £36.8m. Shares fell 6.6pc, or 21.9p, to 310.8p.