Halfords profits rise despite ‘volatile’ year of trading

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Halfords has recorded soaring profits as its B2B, services and online businesses thrived during the pandemic.

The cycling and automotive specialist recorded a 72.3% rise in underlying profit before tax for the full year to April 2, driven by the “biggest ever year for services”.

It said 29% of group sales are now service-related, while 44% are online and 18% are from B2B channels.

Overall, group sales rose 13.1% to £1.29bn as the retailer capitalised on “unprecedented demand” for bikes and cycling products.

With traffic levels reduced by up to 90% during the pandemic, Halfords said that motoring was down 12.1% on a like-for-like basis, but autocentre revenues grew 31.6% year on year thanks to its mobile service.

Halfords is now focusing on driving its service-led business for both consumers and businesses by continuing to evolve its offer, investing in colleagues and boosting its digital capabilities.

Chief executive Graham Stapleton said: “This year has undoubtedly been one of the most challenging that Halfords has faced in its 130-year history.

“I reflect on the year with immense pride in the commitment and determination of our colleagues to support our customers, suppliers and communities, whom we served throughout the pandemic to keep the UK moving in a time of great difficulty.

“Despite the challenging operating environment, I am very proud of the resilient and strong performance we delivered in FY21. We have shown agility in adapting our operating models on multiple occasions during the year, while at the same time continuing to build the strategic foundations on which we will transform our business in FY22.

“The group is in good shape to invest in its strategy and position the business for long-term success. “