Halfords delivers sales growth despite market headwinds

The motoring and cycling specialist reported underlying EBITDA of £186m and profit before tax of £51.5m in the 12 months to March 2023, down £21.1m and £38.3m respectively compared with last year.

Despite a fall in profits, the retailer saw revenue growth of 15.3% to £1.59bn, compared with £1.38bn reported in 2022, with like-for-like sales increasing by 2.4% during the same period.

The retailer said it expects year-on-year profit growth in 2024 and underlying profit before tax of £53.3m in line with current market conditions.

Halfords chief executive Graham Stapleton said: “In a very challenging year, our focus has been on supporting both customers and colleagues through the cost-of-living crisis.

“Investment in competitive pricing and the value for money offered by our Motoring Club has enabled us to help more people with their motoring needs. This has led to an outstanding sales performance and significant market share gains. 

“Over the year we have also made great progress against our strategy, building a bigger needs-based services business, with over three quarters of our revenue now coming from motoring and almost half from service-related sales.

“These results have been achieved despite significant inflation and other macroeconomic headwinds, and are therefore a clear illustration of the ever-increasing resilience of our business.

“Trading since the start of the new financial year has been strong. We have seen growth in our loyalty club, now reaching over 2 million members, and we have entered the £1bn car parts market, drawing on our unrivalled value and convenience. 

“Despite the uncertain consumer backdrop, I am confident that we will see the current momentum continue across the year, as we develop an even more differentiated proposition. 

“Last week we launched an industry-leading buy now, pay later offer to help customers cover the cost of essential vehicle maintenance and repairs. All of this is of course delivered by our highly skilled colleagues, across our unique and convenient combination of garages, mobile vans and stores.”