* H1 pretax profit 68.7 million sterling vs guidance 67-69 million sterling
* Sees FY profit within range of market expectations
* Interim dividend 8.0 pence, up 33.3 percent
* First 6 weeks of H2 Halfords lfl sales down 5 percent
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LONDON, Nov 18 (Reuters) - British car parts to bicycles retailer Halfords posted an expected 13 percent rise in first-half profit, as margin gains and cost savings offset a short term hit to sales from a new distribution centre.
The group, which runs over 460 Halfords stores and the 240-site Nationwide Autocentres car servicing business acquired in February, said on Thursday it expected profit for the full-year to be within the range of market expectations.
Halfords made a pretax profit of 68.7 million pounds ($109.1 million) in the six months to Oct. 1.
That compares with company guidance of 67-69 million pounds and 60.9 million pounds made in the same period last year.
Group revenue increased 7.3 percent to 456.3 million pounds, although sales at stores open over a year fell 4.9 percent reflecting teething problems at the new distribution warehouse in Coventry.
Halfords' gross margins were up 35 basis points, with currency and inflation headwinds offset by better buying and sales of higher margin accessories.
The firm said trading conditions have remained challenging in the six weeks since the end of the half-year with like-for-like sales down 5 percent at Halfords but up 1.2 percent at Autocentres.
Halfords raised its interim dividend by a third to 8.0 pence.
Shares in Halfords have fallen 14 percent in the last three months, underperforming a 9.3 percent rise in the UK general retailers index.
The stock closed at 408.5 pence on Wednesday, valuing the business at 865 million pounds. ($1=.6296 Pound) (Reporting by James Davey; Editing by Jon Loades-carter)