Halfords has reported a strong financial performance for FY25, with underlying profit before tax rising 6.4 per cent to £38.4m, ahead of guidance, as growth in its motoring services business helped offset continued pressure on consumer spending. Group sales increased 2.5 per cent on a like-for-like basis to £1.72bn, while gross margin improved significantly to 50.7 per cent.
The retailer and autocentre operator generated £43m in free cash flow and ended the year with net cash of £10.1m, compared with net debt a year earlier. Halfords also increased its total dividend by 10 per cent to 8.8p per share.
Growth was driven largely by its Autocentres business, where sales rose 3.7 per cent, supported by the rollout of Halfords’ Fusion motoring services model, which combines retail, garages and mobile servicing in local markets. The group now has 50 Fusion sites in operation and plans to expand to around 150 locations over the next two years.
Despite the strong underlying performance, Halfords reported a statutory pre-tax loss of £30m, mainly due to a £49m non-cash impairment charge linked to rising costs and higher discount rates.
Chief executive Henry Birch, who joined in April, said Halfords has a “clear plan” to manage inflationary pressures and sees “significant potential” to grow the business by leveraging its nationwide retail and servicing network. The company said trading in the early weeks of FY26 is in line with expectations, though it remains cautious about consumer confidence.
Share