Bad winter helps Halfords motor ahead with profits up 27pc

The group also reported continued strong sales and market share growth in cycling as it posted a surplus of 117.1m for the year to April 2 – a figure slightly higher than City expectations.

Chief executive David Wild said it had been an excellent year for the company, with revenues up 4.6 per cent to 831.6m and by 0.7 per cent on a like-for-like basis. He added: "Our performance through this period of recession emphasises the resilient quality and adaptability of the business."

In February it moved into car servicing and repairs with the acquisition of Nationwide Autocentres for 73.2m, with early trading signs from the new addition encouraging.

Nationwide has 224 sites but Halfords has plans to open another 200 outlets, creating 1,000 jobs.

In car maintenance, which generates around 30 per cent of the company's revenues, like-for-like sales were up by 8 per cent as Halfords increased its market share and benefited from the rise in demand caused by the wintry weather.

The group said its success in the cycling category, with sales growth of 15 per cent, reflected the success of its own brands.

The company has 462 stores in the UK and Ireland, including 33 small format high street Metro stores.

Investec Securities has added 1m to its forecasts for next year's profits – to 136m.

Analyst David Jeary added: "Halfords remains one of our top picks within the sector. The focus on less risky domestic growth, combined with further profits and dividend upgrades, should be welcome news."

Shares were 6 per cent higher today.