// Halfords snaps up McConechy’s Tyre Service in a £9.3 million deal
// In the 26 weeks to September 27, profits dropped 2.5% while revenue dropped 2.9%
Halfords has acquired independent garage chain McConechy’s Tyre Service in a £9.3 million deal as its revenue and profit dropped in the first half of the year.
In the 26 weeks to September 27, the retailer recorded a 2.5 per cent fall in pre-tax profit to £27.5 million, down 15.1 per cent on an underlying basis excluding the impact of IFRS 16 to £44.9 million.
Overall revenue fell by 2.9 per cent to £582.7 million year on year, down 2.4 per cent on a like-for-like basis as a 2.1 per cent uplift in sales across the retailer’s autocentre division failed to offset a 3.1 per cent decline in sales across Halford’s retail division.
The retailer said the decline was down to sales on discretionary items, but cycling sales continued to grow. It now aims to bolster its autocentres division with the acquisition.
The deal will allow Halfords to serve customers across 900 locations across the UK.
McConechy’s Tyre Service has around 60 sites and 100 vans across Scotland and the North of England which provide a range of services including tyre fitting and vehicle servicing.
“In a period where retail sales were impacted by weakened consumer confidence, we are pleased to have successfully increased gross margin, kept a tight control over costs, and seen growth from our strategic investment,” chief executive Graham Stapleton said.
“Twelve months on from the launch of our strategy to inspire and support a lifetime of motoring and cycling, we have made encouraging early progress,” he said.
“Our Autocentres business delivered strong growth in the half, while new initiatives helped to drive top-line momentum in group services, online and B2B.
“We are clear that our service-led strategy is the right one for Halfords. Our unique position, growing services business and positive macro-customer trends, gives us confidence that this is the right time to accelerate investment, leveraging our trusted household brand to become a clear market leader in motoring services.”