UK-based Halfords has reported a modest rise in first‑half (H1) 2025 profit, as a recovery in cycling demand and stronger margins helped counter higher operating costs.
For the 26 weeks to 26 September 2025, underlying profit before tax inched up 1% to £21.2m ($28m), compared with £21m a year earlier.
Group revenue increased 3.3% to £893.3m, representing like‑for‑like growth of 4.1%. Reported profit before tax came in at £17.2m.
Cycling was the standout performer, with sales up 8.8% to £208m, or 9% on a like‑for‑like basis, supported by market recovery and a warm, dry summer.
Retail revenue rose 3.3% (4% LfL), while the Autocentres division also grew 3.3% (4.3% LfL).
Motoring revenue was broadly unchanged at £324.3m, up 1.1% on a like‑for‑like basis.
Group gross margin improved by 200 basis points to 51.4%, which Halfords attributed in part to its Better Buying cost‑efficiency programme.
However, it noted that operating expenses increased as a share of revenue due to inflation.
Free cash generation reached £27.6m, and the business closed the period with net cash of £18.6m.
The company's Coventry distribution centre had returned to normal operating levels, although it incurred £3.1m of additional non‑underlying costs to protect product availability.
Halfords continued to roll out its Fusion garage concept, with 79 locations trading and an ambition to reach 150 sites by the fiscal year 2027 (FY27).
Membership of the Halfords Motoring Club rose to around six million, including more than 400,000 Premium subscribers, generating £20m in annual subscription income.
The group strengthened its senior team with the appointment of Sarah Haywood, formerly global chief information officer (CIO) at Carlsberg, as CIO from November 2025.
Chair Keith Williams is to step down by the Annual General Meeting set for September 2026.
Halfords outlined a three‑stage plan – “Optimise, Evolve, Scale” – centred on efficiency gains, technology investment and expansion of its digital and garage networks.
It reaffirmed guidance for FY26 underlying profit before tax to align with market expectations and kept full‑year capital expenditure guidance at between £60m and £70m.
