Pandemic cycling boom drives Halfords to improved profits

A surge in demand for bikes and cycling equipment during lockdown has helped to drive Halfords to higher profits for the past six months.

Halfords revealed its pre-tax profits doubled to £55 million for the six months to October 2 as it continued its strong trading through 2020.

Group sales jumped by 9.6% to £638m over the period, as higher bicycle sales helped to offset a softer market for motoring accessories.

The company said cycling-related sales across its 440 stores were 54.4% higher than the same period last year, as guidance to avoid public transport drove demand for bikes. It also saw a spike in demand for electric bikes and scooters, with sales from its “e-mobility” division soaring by 184%.

Halfords says it will increase investment into electrical motoring as well, committing to at least one electric car technician at each of its 367 garages, with electric bike and scooter servicers in all stores.

It comes as the government confirmed sales of new petrol and diesel cars and vans will be phased out by 2030.

Halford chief executive Graham Stapleton said it is “very pleased” with its trading performance against the backdrop of “one of the most challenging trading environments in recent history”.

He added: “It is a great testament to the strength and adaptability of our business, as well as to the professionalism, hard work and dedication of our colleagues.”

Shares rose 7.4% to 281.9p in early trading.

Halford’s pre-tax profits have doubled.