25th Jun 2025 12:04
(Alliance News) - Halfords Group PLC on Wednesday reported that full-year performance was stronger than expected, though the company was still loss-making.
The Redditch, Worcestershire-based company provides of services and components for motors and cycling. Halfords swung to a loss in the year ended March 31. Pretax loss was GBP30.0 million, compared to a profit of GBP38.8 million in 2024.
Nonetheless, underlying pretax profit beat expectations at GBP38.4 million, lower than GBP43.1 in 2024, but higher than the company's forecast, which ranged between GBP32 million to GBP37 million. Underlying basic earnings per share were 13.8p, up 8.7% from 12.7p the previous year.
Full-year revenue increased to GBP1.72 billion from GBP1.71 billion the year prior, a rise of 0.1% overall and 2.5% on a like-for-like basis. This was led by the Retail business, which brought in GBP1.0 billion compared to GBP997.1 million on-year. Meanwhile, Autocentres contributed GBP710.3 million, slightly less than GBP715.7 million in 2024.
Halfords set a final dividend of 5.8 pence per share, 16% higher than 5.0p on-year. This brought the total dividend for financial 2025 to 8.8p from 8.0p, reflecting a 10% rise.
The company drew attention to significantly higher costs from non-underlying items, which climbed to GBP68.4m from GBP4.3m the year prior. Halfords cited non-cash goodwill impairment in its retail unit and costs introduced by the UK autumn budget.
Net debt was GBP261.3 million at March 28, versus GBP315.3 million on-year.
The firm went on to say it had begun financial 2026 by trading in line with expectations. Anticipating another year of elevated inflation, Halfords plans to offset inflationary headwinds through strategic pricing, buying and cost opportunities, alongside maintaining its focus on motoring services.
"I am cautiously optimistic: optimistic because of the unique position Halfords has in the market, the differentiated nature of our eco-system, and the commitment of our colleagues to realising the business’s full potential; but cautious because of continued macroeconomic uncertainty and its impact on the way our customers feel about spending their money," noted Chief Executive Henry Birch.
Birch, who took over as CEO back in April, added that full-year pretax profit was expected to be weighted towards the second half.
Halfords shares traded up 0.1% at 171.40p on Wednesday morning in London.
By Holly Munks, Alliance News reporter
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