Halfords said it is confident it will hit full-year expectations as profit before tax climbed 3.2 per cent to ÂŁ49.1 million in the 26 weeks to September 25.

Like-for-likes at the car maintenance and cycles retailer slid 1.1 per cent in the period, while revenue climbed 1.6 per cent toÂŁ407.1 million.

However, it said there has been a “further slowdown in like-for-like sales performance” since the end of the first half.

Gross margin increased by 70 basis points, reflecting the “favourable mix” towards higher margin categories.

Although its car maintenance category continued to grow, its car enhancement market has “proved challenging”. Its leisure category is “enjoying a period of encouraging growth”.

Sales of roof boxes and ancillary equipment were down due to the poor weather this summer, while its camping offer had its strongest season to date.

The retailer will open about 15 stores during the current financial year and said there remains a “significant opportunity” for further Halfords stores across the UK, Republic of Ireland and Central Europe.

During the period it updated its web site and said it is seeing “material improvements in visitor dwell time and customer conversion”.

Halfords revealed its trial of standalone Bike Hut stores is performing “satisfactorily” and said there is the potential for at least 50 standalone cycle stores across the country.

The retailer said it views Halfords as “resilient to economic downturn, although not immune”.

Halfords chief executive David Wild said: “In the current economic environment the core areas of Halfords' business have performed well, particularly car maintenance, which is characterised as needs driven, with low transaction values and higher than average margins.

“Halfords' ongoing product and service developments together with continuing cost management provide the board with confidence in the delivery of full-year profit before tax, from trading activities, in line with expectations.”
The retailer operates 455 stores.

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