Halfords has stated that it is on track to deliver its expectations for the current financial year, following a "strong first-half".

The motoring and cycling retailer recorded a 4.1% increase in its group like-for-like (LFL) sales to £893.3m in the six months to 26 September, with LFL sales in its cycling division jumping by 9%.

Furthermore, its motoring and autocentres LFL revenues rose by 1.1% and 4.3% respectively.

Halfords recorded a 1% increase in its underlying profit before tax, totalling £21.1m, despite significant inflation during the period, following increases in the national living wage and changes to National Insurance rates.

Chief executive at Halfords, Henry Birch, said: "I am very pleased to be announcing a strong set of HY26 results that show good financial, strategic and operational progress. Cycling was the stand-out performer, with LFL sales up 9%. Our consumer garages also performed particularly well, up around 8%, driven in part by the ongoing roll-out of our new format Fusion garages.

"Looking ahead, there are significant opportunities for us to create further value through improvements in our technology and data capability, which are key areas of focus for us as we plan for the future."

In its outlook, Halfords stated that it is confident in delivering its profit before tax expectations, which are set to reach between £36m and £40.7m.

Its capital expenditure is also expected to land within its guidance range of between £60m and £70m.

Following the announcement, shares in Halfords dropped by over 2.5%.

Investment director at AJ Bell, Russ Mould, stated that the drop in share price can be attributed to its auto services, parts and accessories operations rather than its cycling business.

He concluded: "The company’s first-half results are pedal powered with an eye-catching 9% increase in LFL sales. Investors have been here before and may not be getting carried away as cycling performance tends to fluctuate significantly.

"While cycling sales may be flying like Laura Kenny in the velodrome, supported by warm weather over the summer and autumn, they could just as easily resemble an amateur with a slow puncture next time around. That’s potentially why the market is focusing instead on the more sluggish showing on the motoring side, which has increasingly become Halfords’ bread and butter.

"The company is looking to lean on an improvement in its digital platforms as it looks to navigate a difficult road ahead amid continuing pressures on consumer spending. At least by pursuing these improvements and keeping a lid on costs, Halfords is managing the elements it can control."

---