Halfords aims to reassure investors
The impact of the poor spring weather on Halfords and B&Q owner Kingfisher will be revealed next week when the pair publish updates.Bicycles to car repair firm Halfords will reassure investors that it is on the road to recovery on Thursday, even as it unveils a sharp slide in profits.
The group has had a tough year as high petrol prices and mild weather saw motorists use their cars less and require fewer car maintenance products. But the chain, which operates 467 stores, has been lifted by stronger cycle sales fuelled by recent interest in Britain's Olympics cycling team.
The group previously vowed to cash in on the growing trend and also said it would invest more in its servicing operations, so the City will be looking for further details on how this might be achieved.
Halfords is forecast to report pre-tax profits of between £90 million and £93 million in the year to March end, around 28% lower than the previous year. Its under-pressure performance has troubled investors, who have been hit by a 30% slide in the share price in the last 12 months.
David Jeary, analyst at Investec, who has forecast pre-tax profits of £90.5 million, said: "We believe the combination of increased investment in the current financial year and a strengthened senior operational management team should deliver increased profits from next financial year."
Given April's importance in the DIY calendar, the recent dismal weather will have left a dent in the sales and profits performance at B&Q.
Retail analyst Philip Dorgan expects B&Q's owner Kingfisher to report an 11% drop in the chain's like-for-like sales for the first quarter as it comes up against tough comparisons with strong trading a year earlier.
It will leave B&Q profits down by 11% to £66 million, with the wider UK and Ireland operation, including trade arm Screwfix, off 11% at £76 million. However there is still cause for optimism at Kingfisher, which has impressed analysts with a four-year turnaround programme that has resulted in full-year profits more than doubling to £807 million.
Mr Dorgan, an analyst at Panmure Gordon stockbrokers, said the second quarter should see some pick up in momentum, with shoppers catching up on seasonal purchases and amid softer comparables with a year earlier.
David Jeary, analyst at Investec, who has forecast pre-tax profits of £90.5 million, said: "We believe the combination of increased investment in the current financial year and a strengthened senior operational management team should deliver increased profits from next financial year."
Given April's importance in the DIY calendar, the recent dismal weather will have left a dent in the sales and profits performance at B&Q.
Retail analyst Philip Dorgan expects B&Q's owner Kingfisher to report an 11% drop in the chain's like-for-like sales for the first quarter as it comes up against tough comparisons with strong trading a year earlier.
It will leave B&Q profits down by 11% to £66 million, with the wider UK and Ireland operation, including trade arm Screwfix, off 11% at £76 million. However there is still cause for optimism at Kingfisher, which has impressed analysts with a four-year turnaround programme that has resulted in full-year profits more than doubling to £807 million.
Mr Dorgan, an analyst at Panmure Gordon stockbrokers, said the second quarter should see some pick up in momentum, with shoppers catching up on seasonal purchases and amid softer comparables with a year earlier.
© 2013 Press Association