Bumpy road for Halfords

The new boss of Halfords issued a profit warning yesterday – after just four months in the job.

Graham Stapleton said shielding customers from further price rises on bikes, plus investing in the business, meant profits would be broadly flat in the year ahead.

Shares in Halfords, which sells bike ranges designed by ex-star riders Victoria Pendleton, below, and Chris Boardman, tumbled 11% as a result.

Stapleton, who will give more details about his plans for the firm in September, insisted it had “hidden potential”. He singled out services Halfords offer – including car seat and bulb fitting which “many people aren’t aware of”.

Bad weather saw bicycle sales fall 4.1% the first three months of this year. However, they were up 2.9% over the full year, with retail sales overall increasing 2.3%.

Profits fell 5% to £71.6m as it was hit by a £25m bill caused by sterling’s weakness against the dollar.