Halfords confident

Source: Exec Digital UK

Date :02/10/2008 09:54:27

Halfords Group plc has announced it will meet its first-half profit forecasts despite the credit crunch.

The UK’s largest bicycle and car-part retailer said it is benefitting from consumers’ reduced budgets, which means they are more likely to spend money on repairing their existing vehicles than purchase new ones.

“The business has proven to be robust,'' Chief Executive David Wild said in a statement. “I remain encouraged for the remainder of the year.”

The company plans to add 20 further stores to its UK and Ireland portfolios, and says that demand for bicycles is rising as consumers opt for the cheaper and greener transportation over cars.

The group is also likely to benefit from the collapse of ‘rival’ company Motor World ltd, increasing the numbers of Halfords customers.

In the current climate, Halfords’ share price drop of 15 percent in the past year is strong compared to the 39 percent drop of the FTSE General Retailers Index.

Shares closed at 256 pence, down 1.1 percent.