Halfords expects improvement in motoring business as cycling continues to pedal higher

Home UK Halfords expects improvement in motoring business as cycling continues to pedal higher
Halfords expects improvement in motoring business as cycling continues to pedal higher

Halfords Group PLC (LON:HFD) said it expects higher demand in its motoring business as car journeys pick up, with the public shying away from public transport amid coronavirus fears.

Cycling is estimated to see strong trading throughout the year as many people are forecast to turn to commuter bikes and take advantage of the government's voucher repair scheme.

READ: Halfords cycles higher as it reports better than expected trading amid lockdown[hhmc]

The retailer said the second half of the year will see better profits and modelled three scenarios: the first will see an underlying loss before tax of £0-10mln, the second and third profits of £0-10mln and £10-20mln respectively.

They are based on forecasts of revenue dropping 9.5%, 7.5% and 5% respectively.

The FTSE 250-listed firm has been focusing on improving margins for the cycling business, which is more capital-intensive than motoring.

Group sales for the 13 weeks to July 3 were 6.5Read More – Source

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