Motor accessories and cycles group Halfords posted a 9.6% group sales rise in its first quarter, reflecting its acquisition of Nationwide Autocentres.

But group like-for-likes fell 1.9% and at the core retail division slipped 2.1% in the period to July 26.

Halfords said there had been a sluggish start to the quarter because of poor April weather and uncertainty before and after the election, but that full-year earnings growth should be in line with expectations.

UBS, which retained its neutral stance on Halfords, said that the achievement of cost saving targets is vital. ā€œThe delivery of these cost savings is central to our view that Halfords will meet year-end guidance, even if sales growth continues to disappoint,ā€ said UBS.

Halfordsā€™ joint-house broker, Investec, advises buy and maintained its ā€œenviable track-record on delivering shareholder returns should hold it in good stead.ā€

Topics