Bike sales increase during pandemic to lift trading at Halfords

The firm, whose corporate headquarters is in California, has a global reach with 10 plants in nine countries, including the United States, Slovakia, India and China.

The company operates across a broad range of industries, including the automotive sector, where it has experience in delivering parts from key fobs to reinforcement plates.

In healthcare and life sciences, it provides disposable equipment including syringe barrels and wound care products, as well as instrumentation including genomics and mass spectrometry.

Trend also has expertise in the renewable energy and energy generation and storage sectors.

The average monthly number of employees over the reporting period was 118, an increase of seven from the previous year.

The company previously operating as Stevenson Grantech, which was acquired by Trend Technologies in 2016.

A surge in demand for bikes during the pandemic is set to provide a major boost to Halfords as it unveils its performance over the past year.

Analysts have predicted that soaring bike sales have buoyed the retailer during the lockdown period, with suggestions that its motoring division could also be on the road to recovery.

Tomorrow the stalwart motoring accessories and bike retailer will tell investors how it traded over the past year to June, although there will be particular focus on its performance throughout the lockdown period.

In May, the group revealed trading was ahead of expectations in the four weeks to the start of May, as sales fell 23% on a like-forlike basis against the same period last year.

Halfords was particularly strengthened by high demand for bikes and parts, with the Bicycle Association trade body noting a 50% surge in bike sales in April.

As more people return to work and government guidance continues to suggest that people avoid public transport, the company’s motoring division is expected to recover in the coming months.

Adam Tomlinson, from analysts Liberum, said he believe its motoring services may well have held up better than anticipated.

He said: “We think the market has probably been too cautious about the performance of motoring and particularly autocentres over the near-term.

“With guidance for the public to still avoid public transport where possible, private vehicles (alongside cycling and walking) has remained one of few travel options.”

He added that the group could see a further sales boost in August due to the reintroduction of compulsory MoTs.

Nicholas Hyett, at Hargreaves Landsdown, said Halfords’ mix of autocentres, cycle retail and online investment “make it better suited to compete in a digital first world than most retailers”.

“However, sales are only one half of the equation and our real focus at these results will be cost control and cash conservation,” he added.