Strong growth in demand for bicycles and in-car technology has helped Redditch-based Halfords ride out the retail storm.
The group, which operates from more than 400 stores, said like-for-like sales rose by 6.1 per cent while pretax profits were up by 3.6 per cent to £77 million in the year to March 31 - a figure in line with market expectations.
Halfords said it benefited from strong market positions as it provided one in three bikes sold in the UK and was also the market leader in the supply of car parts and satellite navigation systems.
The company added that its new financial year had got off to an encouraging start with like-for-like sales up 7.3 per cent and by 3.2 per cent when excluding the impact of a later Easter.
Halfords opened 18 new stores during the past year and said it expected to open a further 20 outlets in the coming year. It has identified room for 150 more stores including through the roll out of more neighbourhood stores, which meet the needs of consumers located within smaller catchments.
The company has also developed a new store layout, which improved the display of brands in stores where it is not possible to introduce additional floor levels. Initial trials have been encouraging and will be rolled out to a further 20 stores during this year.
Merrill Lynch said it would leave profits forecasts unchanged after the results and current sales figures from Halfords met expectations.
Halfords also said it would return up to £50 million to shareholders over the next two years and pay a total dividend for the last year of 12.75p a share, an increase of 6.3 per cent on a year earlier.
Chief executive Ian McLeod added the company was optimistic about future trading prospects.
