Halfords brake on perk return
BIG PROFIT FIRM KEEPING VIRUS RELIEF
HALFORDS is hanging onto a Covid tax break – despite expecting to double annual profits to £100million.
The bike and car parts store has been allowed to stay open in lockdowns, along with other essential outlets such as supermarkets.
But unlike most big grocers, the firm hasn’t repaid business rates relief Chancellor Rishi Sunak set up to help firms left reeling by the crisis.
Halfords yesterday announced it was repaying in full £10.7million of taxpayers’ money it received for furloughing staff until August.
But the firm, which paid a business rates bill of £36million the previous year, remained tight-lipped about handing back the 2020 rates relief perk.
Halfords previously said the issue was “under review” and a spokesperson said the situation had not changed. It came as the company said it expected £90million and £100million profit for the year to April, up from £52.6million the year before. It said in a statement: “The expected profit range remains quite broad as trading patterns continue to be volatile, with sales ahead of Easter particularly difficult to predict whilst the UK remains in lockdown.” Halfords’ group sales rose 6.2 per cent in the past seven weeks. Cycling sales leapt 43 per cent despite some ongoing headaches getting supplies. And while motoring sales fell 14 per cent, the firm said the number of car journeys being taken remains 40 per cent below pre-pandemic levels. Luke Hildyard, director of the High Pay Centre, said:” Business rates relief was intended for struggling firms and Halfords doesn’t fall into that category.”