HALFORDS, the car maintenance and bicycle retailer, yesterday posted a 3.2-percent increase in first-half profit and forecast full-year profit in line with expectations despite a slowdown in second-half sales.

'Halfords' ongoing product and service developments together with continuing cost management provide the board with confidence in the delivery of full-year (to the end of March 2009) profit before tax, from trading activities, in line with expectations,' said Chief Executive David Wild.

Prior to yesterday's statement, consensus expectations stood at about 91.5 million pounds (US$137.9 million), up from 83.5 million pounds a year earlier.

Halfords, which trades from 455 stores, also announced plans to expand its operations in Central Europe after a successful initial pilot in the Czech Republic.

It plans to open a store in Poland in December and a further 10 to 15 stores in Poland and the Czech Republic in the year to the end of March 2010.

Halfords also plans to test a revised stand-alone cycle shop format across Britain, believing there is potential for up to 50 stores.

Halfords shares were up 5.8 percent at 236 pence, valuing the business at 468 million pounds.

Before yesterday's announcement, the stock had lost 28 percent of its value over the last year but had outperformed the FTSE All Share General Retailers Index by some 66 percent.