Halfords has released its interim results for the 26 weeks to 29 September 2023. During this period, revenue grew by 13.9 per cent, with like-for-like sales up by 8.3 per cent, and it achieved market share gains in all categories. In particular, its B2B business grew by 37 per cent and now represents nearly a third of Group revenue. Overall, underlying Profit before tax is up 15.8 per cent to £21.3m.
Graham Stapleton, CEO, Halfords said: “Despite the challenging and volatile trading environment and slower than expected recovery in some of our markets, we have made a good start to the year, with substantial sales and profit growth, and increased market share across the business. At the same time, we supported our customers through the ongoing cost of living crisis by delivering great value – when they need it most.
In the face of continuing economic uncertainty, we remain fully focused on optimising every element of the business, and I’m particularly pleased with the very strong performance of Autocentres, where we are delivering significantly improved returns. In light of this, we are accelerating capital investment in the garage services operating model and customer experience in ten towns in the balance of this financial year.
It goes without saying that we simply could not deliver this performance without the hard work and dedication of our fantastic colleagues across the business. I am immensely grateful for their continued support through these very challenging times.”
Commenting on Halfords’ results, Julie Palmer, partner at Begbies Traynor, said: “In the face of a volatile trading environment, it’s a fairly resilient update from the motoring and cycling retailer this morning. The modest growth in revenues highlights the success of Halford’s pivot towards a more reliable, service-based model that’s focused on catering to businesses and needs-based categories.
“That being said, there’s a serious note of caution in this morning’s update and it’s impossible to ignore the fact that consumers are clearly not spending as much in this environment as they used to.
“What this means in practice for Halfords is a reduction in full-year guidance as customers cut back on big-ticket items for the time being. Management is under no illusion that the outlook is uncertain and with interest rates likely to stay high and inflation proving sticky, you can’t blame them.
“Halfords is confident long-term, as evidenced by the rejection of the bid from Redde Northgate, but the brakes are on.
“A cautious approach may be enough to get them through the current market but with consumer confidence at rock bottom, a return to sustainable growth feels out of reach for the time being.”
Share