LONDON (ShareCast) - Full year profit is expected to be in line with expectations at car and bicycle parts retailer Halfords following a 3% hike in the first six months despite falling like for like sales.

Profit before tax for the 26 weeks to 26 September rose to £49.1m, slightly better than expected, up from £47.6m in 2007, on revenue 1.6% better at £407.1m.

“Combined with ongoing cost focus and product and service initiatives, these provide the board with confidence in the delivery of full year profit before tax, from trading activities, in line with expectation,” it said.

Full year reported profit before tax will reflect reorganisation costs of about £2m, with the resultant benefits crystalising in the next and future financial years.

“Furthermore, the success of our initial pilot in Central Europe encourages us to accelerate our operations in this region to secure future growth,” added chief executive David Wild.

Like for like sales fell 1.1% and have slowed further since the end of the half-year, the group admitted, but it said gross margin per cent increased by 70 basis points and continue to improve.

The interim dividend rises to 5p a share from 4.75p last time.

Halfords will announce its interim management statement on 15 January.

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