HALFORDS produced a top-of-the-range rise in half-year profits today after benefiting from a surge in demand for cycling and camping goods.

The group posted profits of £60.9 million for the 26 weeks to October 2, an increase of 24% on a year earlier as this summer’s trend for Britons to holiday in the UK lifted sales of leisure equipment.

Today’s figure is near the top end of Halfords’ prediction last month that it would make profits of between £59 million and £61 million in the half year. This was higher than the £55 million anticipated by City analysts.

As well as better-than-expected leisure sales, chief executive David Wild highlighted a strong second quarter in car maintenance as the company’s “wefit” service makes a greater contribution to overall sales and margins.

He added: “Our approach of building on our unique market position with the addition of expert customer services is broadening our appeal to a wider consumer base, especially families.”

Halfords currently trades from 469 stores in the UK after opening seven new outlets in the half year, including one relocation.

It said it remained cautious about the economy and its impact on consumer spending, but forecast another increase in profits in the second half.

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CITY Halfords

The group has shown that it is picking up business from the “make do and mend” attitude, with car maintenance now big business, while hard-up consumers cycling to work and holidaying in the UK have also provided a boost.

Halfords said it believed the recent UK’s “staycation” trend will be sustained beyond the current recession.

It added that it had launched an extended trial of mobility products in 60 stores, supported by expert advice and after sales support.

“As we understand more about these products, their customers and the market potential, we will decide whether to move to national launch,” Halfords said.

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