Bike sales boost Halfords profits

Halfords accounts for one in three bikes sold in Britain

The car parts and bicycles chain Halfords has said it is confident about profits despite a sales slowdown in the past three months.

The company has seen like-for-like sales, which exclude new stores, slip 1.1% in the quarter to September.

But, despite this, it is still expected to make a full-year profit of around £94m, according to some analysts.

Halfords said it was benefiting as commuters bought more bikes to avoid soaring petrol prices.

Share rise

The firm said its car parts business was also profiting from drivers choosing to save money by maintaining their existing vehicles, rather than buy new ones.

"The group's strong cash flow see it well positioned in these challenging conditions and I remain encouraged by our prospects for the remainder of the year," said chief executive David Wild.

Halfords, which is based in Redditch in Worcestershire, employs more than 10,500 staff in 455 stores. It specialises in selling car parts, cycles, and outdoor leisure and camping equipment.

Halfords' share price closed more than 6% higher following its trading update.