Halfords revenue up 9.2% as group targets £75m profit in FY23

Halfords has revealed a total revenue growth of 9.2% against the prior year in the 20-weeks ended 19 August 2022. Total revenue was also up by 30.3% against FY20, with all segments showing a like-for-like growth over three years. 

Against FY20, revenue at its autocentres increased by 28.2%, while retail motoring and cycling increased by 8.5% and 9.5% respectively. 

Its performance in this period was said to be “in-line” with the group’s expectations, as the group continues to target a full year PBT of £65m to £75m. 

The news comes as Halfords experienced good performance across the business after undergoing strategic acquisitions in autocentres this year, which have been cited as the group’s key driver of its total sales growth. 

In addition, the group also experienced strong progress against its FY23 strategic priorities, which includes the growth of its ‘Motoring Loyalty Club’ to 500,000 members, ‘Project Fusion’ roll-out, National Tyres integrations, and the scaling of its services business. 

As a result, service-related sales reportedly represent 42.2% of the group’s revenues in the period compared to 21.9% in FY20. 

Graham Stapleton, CEO of Halfords, said: “We are working extremely hard to help our customers with the cost-of-living crisis and have dropped prices across nearly 2,000 motoring essentials, ensuring that products remain accessible and affordable for all. 

“We are also determined to do everything that we can to support our fantastic employees whose tireless work and commitment to going the extra mile for our customers is so critical to our performance. Among other initiatives, we are announcing today that we are offering free MOTs to all of our 10,000 colleagues.”

He added: “Over 70% of our sales now come from motoring products and services, and the fact that this area of spend tends to be more needs-based rather than discretionary is leading to a very resilient group performance, despite the wider macroeconomic uncertainty.”