Halfords raises FY22 guidance amid sales surge
The group noted there has also been a ‘positive start’ to H2, with sales momentum continuing and supply chain issues easing over the start of the period
Halfords has lifted its guidance for FY22 following what was a “strong” first-half performance, which saw a total growth of 19.2% against the same period in FY20.
The motor and cycling giant now expects its full-year profit-before-tax to be in the range of £80m to £90m, up from a previous guidance of around £75m.
It comes as over the first-half period, Retail Motoring and Autocentres reported revenue growth of 7.7% and 88.8% respectively, while cycling rose by 8.8%, despite ongoing supply chain issues disrupting the sector.
The group noted there has also been a “positive start” to H2, with sales momentum continuing and supply chain issues easing over the start of the period.
In its latest update, the group noted it had seen a notable growth in the number of customers choosing electric forms of transport, as sales of e-bikes, e-scooters and accessories grew by more than 140% in two years.
In addition, servicing for electric cars was up 120% year-on-year, and the group has now invested in training more than 1,300 electric technicians, and is on track to train 2,000 by the end of FY22.
Graham Stapleton, CEO, said: “We are delighted to have delivered a strong H1 performance, driven by market share gains in Motoring products, Garages and our mobile services business, which now account for more than two thirds of our revenue.
“We also continued to see a significant contribution from areas of strategic focus, with revenue from Group Services, Online and B2B, all growing by more than 75% on a two-year basis. In cycling, demand levels remain good, and we are pleased with the current availability of kids bikes and e-bikes as we head into the Christmas trading period.”
He added: “We have carried good sales momentum into H2 across our business, supported by the easing of supply chain disruption. This has enabled us to increase our FY22 underlying profit before tax guidance to between £80m and £90m.
“There is good momentum in our existing business, the strategically important area of Motoring Services continues to grow strongly, and our recent acquisitions are all performing well. As a result, despite the challenging trading environment, I am very excited about our future growth prospects.”
