Halfords, the car parts-to-bikes retailer, plans to double its standalone cycle shops chain Bikehut from five to ten outlets this year, and will open in its second east European country, Poland, this autumn.

The group, which lost its respected chief executive to an Australian supermarket group in February, also said its new financial year had started slowly, with bike sales in April hit by cold, wet weather compared with last year.

But its results for the year to end-March were comfortably at the top end of City expectations, with pre-tax profits up 8% at £90.2 million on sales 7.2% ahead at £797 million.

Nick Wharton, finance director and acting managing director, said: "At times like this when there is pressure on consumers, it is good that a healthy proportion of our sales are needs-driven.

"If people are not changing their cars for new models they tend to spend more not just on maintenance but on enhancements like satnav or better audio systems.

"Even the fact that more people are taking holidays in the UK rather than abroad helps because we are the biggest seller of roof boxes in the country."

Three new Bikehut stores opened in the year, including one near St Paul's yesterday, taking the total to five.

Wharton said while this is still a trial, with another five shops opening this year, the early signs were that the brand had established itself as a credible retailer in the premium sector where top-of-the-range bikes sell for in excess of £3000. He reckons that at least 50 Bikehuts could be rolled out across the country.

"We know that we have a model that worked in the South-East of England; what we want to be sure of is that it works across the country - then we can roll it out."

The dividend for the year goes up 9% to 15.1p.