UPDATE 3-Halfords sees more growth as year profit rises

* 2008-09 profit 92.4 mln pounds, vs 90.2 mln in 2007-08

* Total dividend 15.9 pence, up 5.3 percent

* "Well positioned" to deliver further earnings growth

* Sees "significant" opportunities for growth in UK

* Shares down 1p at 345.5p at 0818 GMT

(Adds detail, CEO comments, shares)

By James Davey

LONDON, June 10 (Reuters) - British car maintenance and bicycle retailer Halfords Group Plc (HFD.L) said it was on track for further growth as it posted an expected 2.4 percent rise in full-year profit.

"The management are confident that we're well-positioned to deliver earnings growth again this year," Chief Executive David Wild told reporters on Wednesday.

But he said he was managing the business conservatively, given the continued fragility of the UK economy and consumer confidence.

Wild said the first quarter of 2010 looked like being particularly tough as Value Added Tax (VAT) was expected to rise and unemployment was likely to peak.

Shares in Halfords have increased in value by 23 percent over the last year, outperforming the general retailers index .FTASX5370 by 33 percent.

The stock was down 1 pence at 345.5 pence at 0818 GMT, valuing the business at about 719 million pounds ($1.18 billion).

"Halfords' full-year results contained no nasty surprises but also no real excitement," said analysts at Numis in a research note.

The group, which runs about 460 stores, said profit before tax and one-off items was 92.4 million pounds in the 52 weeks to March 27. That was in line with company guidance of 92-92.5 million pounds.

Halfords said it increased market share despite a 0.3 percent fall in revenue to 795 million pounds. Its gross margin was up 160 basis points.

Many British retailers have struggled over the past year as shoppers curb spending amid rising unemployment, sliding house prices and fears of a long and deep recession.

Halfords has fared better than most, thanks to its exposure to less discretionary areas of spending, such as car maintenance, as well as the growing popularity of cycling.

The group reduced its year-end net debt by 9.7 percent to 164 million pounds and raised its total dividend payment by 5.3 percent to 15.9 pence, payable from earnings per share up 8.5 percent to 31.8 pence.

"Reinforced by management actions to improve margins and control costs the delivery of year on year earnings growth, in the present economic turbulence, emphasises the resilient quality and adaptability of the business," said Wild.

He said that over the next two years Halfords would deliver further annual cost savings of 4 million pounds by moving from three old distribution centres to one remodelled centre and one new centre at a cost of 16 million pounds.

The CEO said he saw "significant" opportunities for future growth within the British business and expansion opportunities in Central Europe.

The group plans to open 15-25 new stores are in the current year. (Editing by Dan Lalor and Rupert Winchester)