Halfords (LON:HFD) saw its pre-tax profits drop by 6% to £67.1 million over the year ended 30th March, as profit margins on its retail sales fell by 123 basis points. Total revenues were up by 3.7% at £1,135.1 million, but the bulk of this growth was in the lower margin retail division while autocentre sales were up by a less impressive 0.8%.
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The weaker pound increased the group’s international costs of sales but, even taking that in to account, there was a notable drop in profits and last year’s special dividend is not being repeated. CEO Graham Stapleton said that management were pleased with the results given the challenging retail environment.
Shares in Halfords stood at 344.80p at 12:00 BST, down by 11.13% from today’s opening price. Analysts believed that the drop was largely due to the weak outlook outlined in today’s update.