On the face of it, Halfords’ numbers did not look too pretty last week. The car parts and bikes retailer reported a pre-tax profit fall of 20% in its first half.

On the face of it, Halfords’ numbers did not look too pretty last week. The car parts and bikes retailer reported a pre-tax profit fall of 20% in its first half.

The tumble reflected a like-for-like drop of 1.9% in its retail arm, as well as a fall in gross margin and a rise in costs.

However, the profits slide was in line with expectations and the City greeted the update with some positivity.

Halfords is a relatively good investment case. As Investec analyst David Jeary said, it continues to generate significant cash flow, as well as “supporting shareholder returns through dividends and share buy-backs”.

Until recently Halfords was weathering the economic storm well compared with other retailers, but as shoppers really started to feel the pinch, the need to revamp their cars or indeed drive them at all in the face of rising petrol prices has affected it.

As trading conditions have toughened, Halfords – once publicly on the acquisition trail – has put purchases on the back burner. After its astute acquisition of Autocentres last year, Halfords is right to focus on its existing businesses, for the time being at least.

As well as its multichannel offer, Halfords is focusing attention on cycles, which chief executive David Wild likes to refer to as a “good news story” as people hop on their eco-friendly bike to keep fit and save money.

Halfords’ bikes offer appeals to a broad spectrum of shoppers, with premium Boardman bikes at one end of the scale and boxed bikes for cash-conscious customers at the other.

Halfords has moved up a gear in its store formats too, opening smaller bike-focused stores within the M25 to cash in on the popularity of cycling in the capital.

There are more opportunities on the property side, says Wild. Halfords has identified up to 150 leases that are up for renewal in the next five years, representing a good chance for the retailer to reduce costs.

While business may not be exactly motoring, Halfords is performing robustly and has plenty of pedal power in it yet.