Dividend bonanza at Halfords - Business - Evening Standard
       

Dividend bonanza at Halfords

Halfords hiked its dividend by a massive 20% today as it showed the benefits of more people cycling, camping and choosing to do up their old cars rather than buy a new one.

Pre-tax profits jumped 24% to £60.9 million in the six months to end-September on sales up 3.8% at £409.6 million. The dividend is up a penny from 5p to 6p.

Chief executive David Wild said that the group had had a strong second quarter. "Our leisure categories of cycling and camping products exceeded our expectations," he said.

But he admitted that at last the great satnav boom is over with sales falling.

Halfords is about to launch a national advertising campaign for the group's fitting service "wefit" which saw the number of jobs completed rise 25% in the first half to an annualised run rate of 1.25 million. Wild said that the second half had started well and that — while he remained cautious about the economic outlook — he is confident of another increase in profits in the coming six months.

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