Halfords has seen a 72% record rise in annual profits amid a coronavirus pandemic-led sales boom.
With more and more people choosing to staycation the demand for electric bicycles and scooters was high with sales in the category almost doubling up 94%.
The cycling and motoring accessories chain reported underlying pre-tax profits of £96.3 million for the year to April 2, up from £55.9million on a pro-forma 52-week basis.
Retail sales jumped 14.6% on a like-for-like basis helped by a 54% rise for bikes.
Halfords operates a number of stores across the north and north-east including Aberdeen, Inverurie, Elgin, Inverness, Dingwall, Fort William, Oban, Thurso and Wick.
Bike shops were classed as an essential retailer during lockdown and allowed to remain open.
Mark Fraser, owner of Pedal Power Cycle Centre based in Inverurie, saw his sales more than double last year and is already forecasting this year to be even better.
He said: “Our sales have been massive.
“Last year, particularly when there was the five mile travel restriction, people were doing anything they could to get out and about and turned to cycling.
“Now they really love it. A lot of people who bought bikes last year are now upgrading them.
Everything we made extra from the massive boom in sales was put back into stock to keep the business going.”
Mark Fraser, Pedal Power Cycle Centre owner
“Electric bikes sales are massive and we are selling a lot of them to commuters because they are not using public transport.”
One problem Mark has come up against is a “global” shortage of stock.
He said: “I spent a lot of time last August planning our stock and we have got plenty.
“We actually rented extra storage space because the demand is so high and there’s no point having an empty shop or you go out of business.
“Everything we made extra from the massive boom in sales was put back into stock to keep the business going.”
Travel restrictions to boost further sales
Halfords expects restrictions on foreign travel to boost staycation goods sales.
In a statement it said “pent-up demand and restrictions on foreign travel will give rise to increased demand” for its touring and cycling products.
Graham Stapleton, Halfords chief executive, said: “Demand for our services remains strong in the new financial year, and our touring categories are currently performing particularly well given the trend towards staycations this summer.
Demand for our services remains strong in the new financial year, and our touring categories are currently performing particularly well given the trend towards staycations this summer.”
Graham Stapleton, Halfords chief executive
“In the longer-term, we remain confident in the future prospects for the UK’s motoring and cycling markets and our ability to compete strongly in both.”
It sees statutory profits rising to more than £75 million in 2021-22, up from £64.5 million in the year to April 2.
Mr Stapleton continued: “We are delighted to have delivered a year of very strong financial and operational progress, especially in light of the extraordinary challenges presented by the pandemic.
“It was a year in which Halfords’ transformation into a service-led business was rapidly accelerated, and we were particularly pleased to achieve a record revenue performance in the strategically important area of motoring services.”
