Key facts
- Halfords achieved a £44m pre-tax profit, a significant turnaround from a £30m loss last year.
- Total revenue rose 5% to £1.8bn.
- The motoring services division, including garages, saw like-for-like revenue grow 6% to £740m.
- Retail revenue increased 4% like-for-like to £1bn, with bike sales up 6.4%.
- New chief executive Henry Birch is focusing on expanding the motoring services arm.
Halfords has reported a significant turnaround, achieving a £44m pre-tax profit for the year to April, a substantial improvement from the £30m loss recorded in the previous year. This result exceeded analyst expectations, who had forecast a profit of £40.3m. The company's revenue grew by 5% to £1.8bn.
The growth has been driven by the expansion of its motoring services arm, particularly its network of garages. Like-for-like revenue in autocentre operations increased by 6% to £740m. This growth in repairs services is seen as capitalizing on the UK's ageing car stock, with 43% of vehicles now over 10 years old. This strength helped offset ongoing weakness in the tyre market.
The retail division also showed resilience, with like-for-like revenue up 4% to £1bn, supported by a 6.4% increase in bike sales. This marks a recovery for the cycling segment after the pandemic-era boom. However, profits in the retail business remain under pressure due to inflation and reinvestment costs.
Chief executive Henry Birch, who took over from Graham Stapleton last year, is implementing a strategy focused on leveraging Halfords' market positions and unique service offerings. The company also announced that Jock Lennox will join the board as chair, succeeding Keith Williams.