6th Sep 2023 14:22
(Alliance News) - Halfords Group PLC on Wednesday said it has seen a positive start to its financial year as it upped its full-year guidance.
The Redditch, Worcestershire-based motoring and cycling products retailer said for the 20 weeks to August 18, total revenue was up 14% on-year, with autocentre revenue up 35%, and retail revenue increasing by 3.7%.
The company noted that its its "strong" services and B2B performance accounted for 48% of revenue, with its B2B sector winning a nationwide contract with Yodel Delivery Network Ltd.
Halfords said its trading during the period has been in line with its expectations.
Looking ahead, the company said it expects its pretax profit to be between GBP48 million and GBP58 million for the full year. In financial 2023, the firm posted pretax profit of GBP43.5 million.
It added that underlying profit is expected to be significantly below that of financial 2023, as a result of changes in the value of foreign exchange contracts and because the majority of its GBP30 million cost savings are set to be delivered in the second half of the year.
Second-half profit is forecast to be considerably higher than the year prior, it said.
Chef Executive Graham Stapleton said: "It's been a good start to the year for Halfords, and our ongoing focus on essential maintenance and servicing is driving a strong performance in our Autocentre and Retail Motoring business. Group Motoring, which now accounts for over 75% of our total sales, is a resilient sector and we’re progressing with our long-term plans to become a one-stop-shop for motoring ownership."
Halfords shares rose 1.9% to 190.40 pence each on Wednesday afternoon in London.
By Harvey Dorset, Alliance News reporter
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