REG-Halfords Group PLC Halfords Group PLC: Trading update for the 52 weeks to 28 March 2025

HalfordsAnnouncement

15/04/2025 07:02

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   Halfords Group PLC (HFD)
   Halfords Group PLC: Trading update for the 52 weeks to 28 March 2025

   15-Apr-2025 / 07:00 GMT/BST

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   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE
   7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 WHICH FORMS PART OF
   DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK
   MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY
   INFORMATION SERVICE, THIS INSIDE INFORMATION WILL BE CONSIDERED TO BE IN
   THE PUBLIC DOMAIN.

    

   15 April 2025

                               Halfords Group plc

           Trading update for the 52 weeks to 28 March 2025 (“FY25”)

                                        

   A strong finish to FY25: expected profit around top of range; outstanding
     performance at new Fusion locations; Halfords Motoring Club exceeds 5m
                                    members

     Appointment of Henry Birch as CEO as Graham Stapleton leaves Halfords
                               after seven years

    

   FY25 performance

     • Positive group like-for-like (“LfL”) sales +2.3% vs. strong prior year
       comparatives (FY24: +5.0%).
     • Following 160bps of gross margin expansion in H1, H2 saw gross  margin
       gains accelerate  as  a  result of  pricing  optimisation  and  Better
       Buying, as well as a favourable hedged FX rate in cost of goods sold.
     • Outperformed £30m cost  saving target,  mitigating more  than £30m  of
       inflation in the year.
     • Underlying Group profit before tax around the upper end of the £32m to
       £37m range previously guided.
     • The Group  has two  reporting segments:  Autocentres (c.40%  of  Group
       revenue) and  Retail (c.60%,  across Motoring  and Cycling).  Motoring
       across both segments represents c.80% of total sales.

          ◦ Autocentres (ex-Avayler) delivered LfL sales +3.7% against a
            strong comparative (FY24 +10.7%), with strong growth in
            strategically important Services, Maintenance and Repair (“SMR”)
            work more than compensating for continued weakness in the
            consumer tyres market.
          ◦ Retail LfL sales turned positive in H2, improving in both
            Motoring and Cycling to deliver FY25 LfL sales +1.7%.

     • Strong cash generation  through business  profitability and  continued
       working capital discipline to close the year with net cash.
     • Fusion rollout on track, bringing together our Motoring Services offer
       across local stores  and garages to  deliver significant increases  in
       sales and profitability (averaging up to  50% sales uplift and set  to
       double contribution across the converted locations).
     • Halfords Motoring Club exceeded 5m members who are now responsible for
       almost half of MOTs in our garages and represent nearly 15% of the  UK
       car parc. c.370k of these  are Premium Club members generating  c.£18m
       of annualised subscription revenues.

   Outlook

     • We have previously communicated that  the changes to the Minimum  Wage
       and National Insurance thresholds and  rates introduced by the  Autumn
       Budget will  result in  c.£23m of  incremental direct  labour cost  in
       FY26. We also expect increased costs to be passed through in contracts
       for managed services.
     • We have undertaken a comprehensive review of the business to  identify
       potential mitigations  for the  additional  cost expected  from  FY26,
       which has generated opportunities in pricing strategy, further  buying
       and cost efficiencies, proactive portfolio management and acceleration
       of strategic initiatives.
     • We  expect  to  be  able  to  mitigate  the  entirety  of  the  direct
       inflationary impact  of the  Autumn Budget  in FY26.  However,  retail
       sales remain volatile and the consumer outlook is uncertain.
     • Halfords does not export or import goods to or from the US and as such
       has no  direct  exposure to  newly  introduced tariffs.  However,  the
       indirect impact  on  our supply  chain,  including on  product  costs,
       freight rates  and shipping  times remains  to be  seen, as  does  the
       impact on consumer spending. We will  continue to adapt our plans  and
       respond tactically to the evolving environment as the year progresses.
     • In total  (and  including those  locations  delivered to  date)  c.150
       garages have been  identified as suitable  for conversion into  Fusion
       sites. Given the exceptionally strong  returns we have witnessed  from
       the programme to  date, we plan  to move quickly  to convert at  least
       half of those remaining in FY26.
     • We will provide further  detail on our  priorities for FY26  alongside
       our FY25 results announcement taking place in June.

   Directorate change

     • As communicated in a separate announcement today, Graham Stapleton  is
       leaving Halfords and  will be  succeeded as  CEO by  Henry Birch,  who
       joins the business this week.

   Graham Stapleton said:

   “This is  a performance  to be  proud  of, mitigating  more than  £30m  of
   inflation in what continued to  be a very challenging trading  environment
   in FY25. I want  to thank every single  Halfords colleague for their  hard
   work in achieving a significantly  stronger result than we anticipated  at
   the start of the financial year.”

   After seven years leading  the transformation of  Halfords from a  cycling
   and   motoring   retailer    to   an    omnichannel   motoring    services
   super-specialist,  most  recently  brought  to  life  through  the  Fusion
   programme, it is time for me to hand over the reins for the next phase  of
   the business’s evolution. I wish Henry and the team all the best.”

    

   The person responsible for releasing this announcement is Tim O’Gorman,
   Company Secretary.

   For further information:

    

   Investors

   Holly  Cassell,   Director   of   Investor   Relations   &   ESG          
    1 investor.relations@halfords.co.uk

   Media

   Rob Greening / Jane Glover, Sodali & Co.       2 halfords@sodali.com 

   Notes to Editors

    

    3 www.halfords.com                              4 www.avayler.com        
     5 www.tredz.co.uk        6 www.halfordscompany.com                     

    

   Halfords is the UK’s leading provider of motoring and cycling services and
   products. Customers shop at 373  Halfords stores, two Performance  Cycling
   stores (trading as Tredz), 542  garages (trading as Halfords  Autocentres,
   McConechy’s, Universal, National Tyres and Lodge Tyre) and have access  to
   280 mobile service vans (trading  as Halfords Mobile Expert and  National)
   and 504  commercial vans.  Customers  can also  shop at  halfords.com  and
   tredz.co.uk for pick up at their  local store or direct home delivery,  as
   well as  booking  garage  services online  at  halfords.com.  Through  its
   subsidiary Avayler, Halfords  also sells the  Group’s bespoke,  internally
   developed software as a SaaS solution  to major clients in the US,  Europe
   and Australia.

    

   Cautionary statement

    

   This report contains  certain forward-looking statements  with respect  to
   the financial condition, results of operations, and businesses of Halfords
   Group plc. These  statements and forecasts  involve risk, uncertainty  and
   assumptions because they  relate to events  and depend upon  circumstances
   that will occur in the  future. There are a  number of factors that  could
   cause actual  results  or developments  to  differ materially  from  those
   expressed  or   implied  by   these  forward-looking   statements.   These
   forward-looking  statements  are  made  only  as  at  the  date  of   this
   announcement. Nothing in this announcement should be construed as a profit
   forecast. Except as required by law, Halfords Group plc has no  obligation
   to update the  forward-looking statements or  to correct any  inaccuracies
   therein.

    

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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00B012TP20
   Category Code:  TST
   TIDM:           HFD
   LEI Code:       54930086FKBWWJIOBI79
   OAM Categories: 2.2. Inside information
   Sequence No.:   382741
   EQS News ID:    2117720


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:investor.relations@halfords.co.uk
   2. mailto:halfords@sodali.com
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=29dc984d54d2ebc03d67661cf391efeb&application_id=2117720&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
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   5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=8d9c0d9b41eb2335e0a4ce386dba87e7&application_id=2117720&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
   6. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=dc934a09a1192ec0a1dd5bc4c5b4e7f2&application_id=2117720&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news


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