UK's Halfords narrows annual profit forecast range

(Reuters) -Bicycles-to-car parts retailer Halfords Group on Wednesday narrowed its annual profit forecast range, lowering the upper end of its expectations by 5 million pounds ($6.4 million) as Britons cut down on discretionary spending.

Soaring prices of everything from energy to food are forcing consumers to curtail non-essential spending, as they try to make ends meet, while businesses are looking to rein in costs and stay afloat by wooing customers with offers and discounts.

Halfords, which has been shifting focus to steadier revenue streams such as motoring services, said it would accelerate investment in that operating model in 10 towns in the rest of its financial year.

Media reports emerged earlier this month that Halfords - which sells bikes and is the UK's biggest provider of motoring services and products, had received a takeover interest from van rental and accident repairs group Redde Northgate.

Halfords, which has nearly 400 stores, about 650 garages and hundreds of mobile servicing vans, said it now expected underlying profit before tax for fiscal year 2024 to fall within the range of 48 million pounds to 53 million pounds. It had previously forecast a 48 million pound-58 million pound range.

Analysts expect profit of 53.1 million pounds, according to a company-compiled consensus.

($1 = 0.7873 pounds)

(Reporting by Eva Mathews and Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)