# UK’s Halfords expects pricing efforts to drive profits Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Halfords Pricing Efforts to Boost Profits Amid High Inflation Meta Description: Find out how Halfords plans to boost profits in the face of rising inflation with low pricing and customer loyalty initiatives. Stay updated with Halfords in URL: https://financedigest.com/uks-halfords-expects-pricing-efforts-to-drive-profitshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-21t061836z1lynxmpej5k04prtroptp4britain-retail-halfords-1736813848925-compressed.jpg) # UK’s Halfords expects pricing efforts to drive profits By Sarah Young LONDON (Reuters) -Halfords forecast profit would rise 3% in its current financial year, saying its efforts to keep prices low should help it to retain customers squeezed by inflation that limits their power to spend on bikes and motoring. British inflation held at 8.7% in May, according to data released on Wednesday, defying expectations for it to drop, and meaning the country still has the highest rate of any major advanced economy. Halfords, which sells bikes and is the UK’s biggest provider of motoring services and products, said trading since the start of its new financial year in April had been strong and its plan to grow [market share](https://www.financedigest.com/world-shares-rally-as-china-offers-markets-a-hand.html "World shares rally as China offers markets a hand") was on track. Chief Executive Graham Stapleton said Halfords is investing in prices to keep them low, putting resources into growing its loyalty club and offering [customers interest-free financing](https://www.financedigest.com/revolutionising-finance-exploring-the-impact-of-omnichannel-insurance-on-customer-experience.html "Revolutionising Finance: Exploring the Impact of Omnichannel Insurance on Customer Experience") so they can spread the cost of replacing car tyres over a longer period. “Customers are spending more time thinking carefully about big ticket discretionary spend, not just in bikes, but everywhere,” Stapleton said in an interview. Shares in Halfords, which have risen 14% in the last three months, traded up 5% in early deals. [Cost inflation](https://www.financedigest.com/fresenius-medical-forecasts-smaller-income-decline-as-cost-inflation-eases.html "Fresenius Medical forecasts smaller income decline as cost inflation eases") last year was 68 million pounds ($86.56 million), Stapleton said, but he forecast it would fall to 30 million pounds in the current financial year. While the [cost of energy](https://www.financedigest.com/factbox-europes-efforts-to-shield-households-from-soaring-energy-costs.html "Factbox-Europe’s efforts to shield households from soaring energy costs"), labour and currency remains high, there is deflation in the cost of bicycles and rubber-based products, he said. For the 12 months to the end of March 2024, Halfords said it was comfortable with analysts’ consensus [forecast for underlying pretax profit](https://www.financedigest.com/mercedes-benz-lifts-profit-forecast-as-luxury-cars-boom.html "Mercedes-Benz lifts profit forecast as luxury cars boom") of 53.3 million pounds, compared to the 51.5 million pounds reported for last year. That result was a fall of 38% on the previous year, resulting from the [cost of living crisis](https://www.financedigest.com/britains-cost-of-living-crisis-sends-sterling-to-lowest-since-mid-july.html "Britain’s cost of living crisis sends sterling to lowest since mid-July") and a tough comparison against the COVID-era when people had more to spend on bikes and tyres. ($1 = 0.7822 pounds) (Reporting by Sarah Young; [editing by James Davey and Barbara Lewis)](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---