27th Nov 2025 11:17
(Alliance News) - Halfords Group PLC on Thursday reported broadly stable performance in its first half, as revenue edged up slightly, while profit fell a little below the previous year's level.
The Redditch, England-based motoring and cycling retailer posted GBP893.3 million in revenue for the 26 weeks that ended September 26, up 3.3% from GBP864.8 million a year earlier. This mirrored a 3.3% rise in retail sales, which edged up to GBP533.2 million from GBP516.1 million. Revenue from autocentres also rose 3.3% to GBP360.1 million from GBP348.7 million.
Pretax profit was down 3.4% to GBP17.2 million from GBP17.8 million. Still, the firm booked underlying pretax profit of GBP21.1 million, about 1.0% ahead of GBP21.0 million on-year.
Halfords forecast full-year underlying profit in line with consensus, ranging from GBP36.0 million to GBP40.7 million, compared with GBP38.4 million the year prior.
It has declared an interim dividend per share of 3.0 pence, unchanged on-year.
Operating costs advanced 7.9% to GBP433.0 million in the first half from GBP401.1 million, with the company citing inflationary pressures. Capital expenditure increased to GBP31.1 million from GBP23.6 million, though Halfords backed its annual capex target range of GBP60 million to GBP70 million.
Cost-saving plans are in progress, and operations at the firm's Coventry warehouse have returned to normal following "management system issues". Related costs incurred in first half totalled GBP3.1 million, the company said, "at the low end of earlier guidance."
Halfords shares fell 3.1% to 139.20 pence on Thursday morning in London.
Chief Executive Henry Birch, who took on the role earlier this year, commented: "Looking ahead, there are significant opportunities for us to create further value through improvements in our technology and data capability, which are key areas of focus for us as we plan for the future.
"While the operating environment remains unpredictable, our combination of needs-based products and services, as well as market leading positions in both motoring and cycling, give us the confidence that we will continue to grow our business in line with our plans."
Birch told the PA news agency that Halfords was in a good position following Wednesday's UK budget announcement.
By Holly Munks, Alliance News reporter
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