Halfords Group PLC has released its 20-week trading update for the financial year 2024, reporting strong market share gains and a +7.8% Group like-for-like (LFL) revenue performance. Total revenue for the Group increased by +14.1%, driven by needs-based categories, with Autocentres seeing a +34.6% increase and Retail seeing a +3.7% increase. Services and B2B performance accounted for 48% and 29% of Group revenue respectively, with B2B winning a significant nationwide contract with Yodel. Market share gains were achieved across all categories, in line with expectations set out at the Capital Markets Day in April. The trading year to date is in line with expectations, and full underlying profit before tax (PBT) is expected to be between £48m and £58m.
Graham Stapleton, CEO of Halfords, commented that the company's focus on essential maintenance and servicing is driving a strong performance in the Autocentre and Retail Motoring business. He also mentioned that Halfords is progressing with its long-term plans to become a one-stop-shop for motoring ownership. Stapleton highlighted the company's commitment to offering unrivalled value to customers and announced the launch of a campaign called "Dealer or No Dealer" to raise awareness of the choice and cost savings available for servicing and repairs at Halfords.
In terms of financial performance, the Group achieved a strong like-for-like performance of +7.8%, with Autocentres seeing a +16.6% increase and Retail seeing a +3.4% increase. Needs-based products and services drove a strong Motoring LFL of +7.5%, while Cycling, Car Cleaning, and Touring were adversely impacted by unfavourable weather and low consumer confidence. Market share growth was achieved across all categories, with Services accounting for 48% of Group revenue and B2B accounting for 29%. The company's cost and efficiency programme is on track to deliver a year one target of £30m in cost reductions.
Looking ahead, Halfords expects its full year PBT to be between £48m and £58m. The company anticipates that its H1 underlying profit will be significantly below last year due to changes in the valuation of foreign exchange contracts and the timing of cost savings. However, H2 profit is expected to be significantly ahead of last year, with Autocentres making up a higher proportion of Group PBT and increased cost and efficiency savings. The current analyst consensus for PBT is £53.7m, with forecasts ranging between £51.0m and £57.7m.