Halfords lifts profit expectations, shares surge

Halfords upgraded its outlook for full-year profits on Wednesday as it reported growth in first-half profit and revenue, sending shares in the motoring and cycling products retailer surging.

In the 26 weeks to 1 October, revenues were up 19.2% compared to FY20 at £694.8m, with pre-tax profit rising to £64.3m from £325.7m in the same period a year ago.

Halfords said revenue growth was driven by market share gains in Autocentres and Retail Motoring, and Retail Cycling growth, despite ongoing supply chain issues.

The retailer lifted its guidance for FY22 underlying pre-tax profit to between £80m and £90m, from "above" £75m previously.

Halfords said it has seen a positive start to the second half, with sales momentum continuing across the business and supply chain disruption beginning to ease.

Chief executive officer Graham Stapleton 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. We have carried good sales momentum into H2 across our business, supported by the easing of supply chain disruption."

At 0830 GMT, the shares were up 12% at 312.60p.