INVESTORS in Halfords will be hoping the retailer has made progress in repairing holes in its workforce as it is set to unveil its full year financial results.

The bike and car parts seller warned over its profits earlier in the year amid a shortage of mechanics.

The firm, which also services cars and bikes, said it was struggling to recruit enough skilled technicians to meet higher levels of demand.

The retailer also flagged a slump in sales of higher-priced items in its retail business; furthermore, it has been knocked by a "massively declining" consumer tyre market, but said it may start to recover in the first half of the new financial year. Chief executive Graham Stapleton said the firm was having to look at its staff pay and flexible working policies because "people want to work less, and more flexibly".

Halfords is set to make a profit of £54m for the latest full year, according to analysts compared to nearly £100m last year.

The profit warning sent Halford's share price tumbling by a fifth. It recovered, but shares have declined by seven per cent so far this year.

The London-listed business is also expected to report sales of around £1.6bn for the full year.

Shareholders will be hoping to receive an update on consumer demand and the strength of the tyre market when Halfords reveals its financial results on Thursday.

PA

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