Halfords sees no end to tough times

Customers are battening down the hatches and preparing for a long period of austerity, forcing retailers to come up with innovative ways to prise money from purses.

So says Halfords chief executive David Wild, who was able to unveil a strong set of results today, even as he predicted that tough times are likely to continue.

"I think customers have changed," he said. "They are no longer gritting their teeth and saying, we need to get through the next six months, they are accepting that this is the new reality.

"This is not a short-term trend. What customers are doing is seeking out value, but buying quality."

Wild's evidence for this includes premium bikes - such as Olympic champion Chris Boardman's range - which are the fastest-growing bit of the business.

Sales of other "luxuries" - flash car radios, satnavs - are plunging.

For the year to April sales are up 4.6% to £870 million, with profits 7% ahead at £126 million.

Those numbers allow Halfords to boost the dividend by 10% to 22p and slash debts by 34% to £103 million.

The Nationwide Autocentre business, bought last year, has been rebranded, as Halfords pushes its reputation as the company for "life on the move".