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Halfords has reported that group sales rose 4.1% on a like-for-like basis, with cycling up 9%, for the 26-week period to 26 September, driven by stronger demand in its cycling division and steady growth across its retail and autocentre operations.
As retail and autocentre sales grew by 4% and 4.3% respectively, the group posted underlying profit before tax of £21.2m, which was broadly level with the £21m recorded a year earlier.
Reported profits before tax was £17.2m compared with £17.8m in the same period of 2024.
The retailer also revealed that its gross margin improved by 200 basis points to 51.4%, supported by savings through its Better Buying programme. Operating costs increased as a share of revenue, which the group attributed to inflationary pressures. Free cash flow of £27.6m lifted period-end net cash to £18.6m.
The company said its Fusion garage format – intended to link motoring services within a town and improve customer experience – is progressing towards a target of 150 locations. Some 79 sites are now trading, and the group expects the format to double garage-level profitability and pay back within two years.
Membership of the Halfords Motoring Club has risen to about six million, including more than 400,000 paying Premium members generating around £20m in annual subscription income.
Halfords said its Coventry distribution centre is operating at normal efficiency after earlier warehouse management system issues. The additional non-underlying cost of maintaining product availability during the half was £3.1m, at the low end of previous guidance.
The group also announced the appointment of Sarah Haywood, former global chief information officer of Carlsberg, as chief information officer from November 2025. Chair Keith Williams plans to step down at the company’s annual general meeting in September 2026 after nine years in the role.
According to Halfords, it expects to meet full-year underlying profit expectations and continues to guide capital expenditure of £60m to £70m for the year.
Henry Birch, chief executive of Halfords, said: “Looking ahead, there are significant opportunities for us to create further value through improvements in our technology and data capability, which are key areas of focus for us as we plan for the future.
“While the operating environment remains unpredictable, our combination of needs-based products and services, as well as market leading positions in both motoring and cycling, give us the confidence that we will continue to grow our business in line with our plans.”
