Halfords – I fell off my bike and it is hurting me!

Mark Watson-Mitchell updates on Halfords after its full-year results sent the shares sharply lower. 

Last week I profiled Halfords (LON:HFD) ahead of the group’s results earlier this week.

When I featured the company, its shares were 156p and I suggested that they could soon rise to 180p.

Well they did that, hitting 185.6p on Monday.

On Tuesday the group announced its finals for the 2020 year. They showed sales up 0.3% at £1.14bn and underlying pre-tax profits down just 4.9% at £55.9m, with earnings coming in at 24.3p off only 0.8%.

Obviously, no guidance was given for the current year, due to Covid-19.

But, oh my goodness, the market did not like the results nor the statement and accompanying scenarios for the 2021 year.

It slammed the shares for six, closing them down to 152p on Tuesday night, and then another 18p lower to 134p by last night.

Between now and 8 September, when the company will report its trading for the 20 weeks to 21 August, I reckon that we will see them still being a tricky market but wanting to edge back up to their recent best.

We shall just have to wait and see what happens. Even so there could well be an ideal averaging opportunity right now.