BIKE and car parts firm Halfords has seen its annual sales top £1 billion for the first time as it benefits from the country's renewed interest in cycling.

The group, which runs 468 Halfords and 300 Autocentres garages, hit its revenue target 12 months early as its three-year turnaround programme to upgrade stores and invest in new products began to bear fruit.

It said its pre-tax profit jumped 11.3 per cent to £81.1m and like-for-like sales lifted 6.8 per cent in the year to March 27, driven by an increase in sales for its bikes and car parts and at its garages.

In recent years, the group has taken advantage of a surge in interest in cycling spurred by the success of ranges in collaboration with Olympic champions such as Chris Boardman and Victoria Pendleton.

Over the year the group said like-for-like sales at its cycling department jumped 11.4 per cent, and at its Autocentres garages, previously a problem area for the group, they were up 5.3 per cent over the period.

Chairman Dennis Millard said: "We are not just riding on two wheels, we are riding on four as well."

He added that under its new management team there was still room for improvement at Autocentres.

In November, the group said it would start a chain of standalone cycle shops across the UK, called Cycle Republic.

This month it said it would launch a new children's bike range and additions to its Boardman range in the fourth quarter of its new financial year.

The group also plans to open between 10 and 15 new Autocentres over the year, as well as a variety of new car part products.

The firm's new chief executive Jill McDonald joined last month after leaving fast food chain McDonald's where she was the UK boss.

She replaces Matt Davies, who was lured to Tesco to become head of its UK operations. Mr Davies had only taken over in October 2012 following a profit warning that sparked the departure of his predecessor, David Wild, earlier that year.

Halfords chairman Mr Millard said Ms McDonald had been "very busy" since joining the firm three weeks ago, including working in his local store.

Ms McDonald said: "I have been out and about over my first three weeks so I have been visiting a lot of stores up and down the country. I have spent a couple of days working in stores."

She declined to set out her early thoughts on the company, saying: "It's a bit too early to start pontificating."

Will Hedden, a dealer at London Capital Group, said: "Halfords shares are back on their bike once again, riding back up towards the £5 level not seen since 2010 after ascending to a £1 billion annual revenue target a year earlier than planned."