Shares in retailer Halfords (LON:HFD) fell over 6 percent on Thursday morning, after profits were hit by the weaker pound.

The company reported a strong increase in revenue over the financial year, with total group revenue up 3.8 percent and 1.5 percent on a like-for-like basis. Halfords said that it anticipated
group profit before tax for the 2018 financial year to be in line with current market expectations.

However correlating with previous guidance, the depreciation of Sterling is likely to have a continued impact and add a £25 million cost increase, £15 million of which was evidence on the cost of goods in the first half.

Jonny Mason, Chief Financial Officer & Interim Chief Executive Officer, said the group’s “mitigation plans are on track”, pointing investors towards the “positive sales growth for this period, despite the poorer summer weather and the uncertainty in the UK economy”, rather than the profit impact of higher costs.

“Looking ahead, we have strong plans both in-store and online for the Cyber, Christmas and winter peaks”, Mason said.

Shares in Halfords sunk on Thursday morning, however, and are currently trading down 5.80 percent at 313.39 (1139GMT).