MOT tests and new purchases keep Halfords on the pedal, even if Omicron undermines sales of bike products.
- In the last quarter of 2021, revenue at its Autocentres division nearly halved
- Halfords recently acquired the National Tires and Service Network for £ 62 million
- The firm’s sales of B2B and group services grew by 60% and 91%, respectively.
Halfords has continued to grow significantly in the auto maintenance and repair division, although the Omicron option has hurt Christmas sales in retail stores.
Revenues in the Group’s Autocentres business nearly doubled in the last 13 weeks of 2021 compared to the same period last year, as changes to the UK government’s MOT delay program peaked in demand during the period.
For a similar comparison, the division’s revenue was 10.7 percent and about a third higher than two years ago, with much of the growth coming from very healthy demand in its mobile service business. ‘ri came.
Emerging sales: Revenues in the Group’s Autocentres business grew by almost half in the last 13 weeks of 2021 compared to the same period last year.
The firm’s CEO said the results of Autocentres were a testament to Halfords ’recent acquisition success, including the purchase of £ 62 million worth of tires and a service network and a £ 15 million contract for Kent-based Universal Tires and Autocentres.
At the same time, online sales grew by more than 70 percent, while revenues from business to business and group services grew by 60 percent and 91 percent, respectively.
However, sales of the firm’s bicycle products fell by almost a quarter as Omicron’s impact, such as weakened legs and increased consumer vigilance, worsened due to “unexpected load delays” on its smaller bikes.
Despite more than doubling the purchase of electric bicycles, adult bike revenues increased by 20 percent, and despite excellent sales at the Tredz subsidiary, they were well below pre-pandemic levels.
Total revenue in its auto segment fell 1.5 percent as high sales in the first half of the period deteriorated as Covid cases increased, but price investments and a slowdown in domestic holidays had an additional impact.
Helfords expects the damage caused by Omicron to decrease, and so until other serious options emerge, it is still forecasting revenue of between £ 80 million and £ 90 million before taxes this year.
Weak sales: Sales of Halfords bicycle products have been reduced by about a quarter as Omicron’s impact has worsened due to “unexpected load delays” on its smaller bikes.
“These results show the strength of our automotive services offer and the excellent performance of our Autocentres business confirms the rationale behind our recent purchases,” said CEO Graham Stapleton.
He added that National’s acquisition accounts for more than 70 percent of the automotive Halfords business, and it expects to do work to service about 7.5 million vehicles each year.
“We are working hard to continuously increase our capabilities, capabilities and geographic location in this area, making it easier and more convenient for customers to service a wider range of vehicles than ever before at more than 1,400 stationary or mobile car service addresses.
“The Covid-19 pandemic has continued to cause a number of hurricanes and has put significant pressure on our colleagues who have overcome various challenges and problems.”
Halfords shares rose just 0.55 percent to £ 3.64 on Thursday, but their value has risen nearly 30 percent in the past 12 months.