Halfords : forecasts 25% sales drop, tries to save cash

British bicycles and car products retailer Halfords warned that it was likely that sales would drop sharply as a result of government measures to prevent the spread of coronavirus, prompting it to try to save cash.

The company said it would suspend its dividend and try to negotiate with landlords for rent relief, adding that it was confident that it could operate within its debt facilities.

Halfords said that it was planning for a sales decline of 25% during its new financial year which starts in April, with the April-June period worst affected.

"Given the rapidly changing situation, there is no certainty on the severity or duration of the impact on the business and so we are not providing formal profit guidance for FY21 at this time," Halfords said on Wednesday.

(Reporting by Sarah Young; editing by James Davey)