REG-Halfords Group PLC Halfords Group PLC: Preliminary Results for the 52 weeks to 28 March 2025
Today 07:00
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Halfords Group PLC (HFD)
Halfords Group PLC: Preliminary Results for the 52 weeks to 28 March 2025
25-Jun-2025 / 07:00 GMT/BST
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25 June 2025
Halfords Group plc
Preliminary Results for the 52 weeks to 28 March 2025 (“FY25”)
A strong financial performance with underlying PBT ahead of expectations
High returning Fusion motoring services roll out continues at pace
Halfords Group plc (“Halfords” or the “Group”), the UK’s leading provider of Motoring and Cycling services
and products, today announces its preliminary results for the 52 weeks ended 28 March 2025.
£m FY25 FY24** Change LfL % Change
Headline Measures (Total Ops):
Revenue 1,715.2 1,712.8 0.1% 2.5%
• Autocentres 710.3 715.7 (0.8%) 3.7%
• Retail 1,004.9 997.1 0.8% 2.1%
Gross Margin 50.7% 48.2% 2.5ppts
Underlying Profit Before Tax* 38.4 36.1 6.4%
Underlying Basic Earnings per Share* 13.8p 12.7p 8.7%
Dividend per Share 8.8p 8.0p 10.0%
Net Cash / (Debt) (ex-Leases)* 10.1 (8.1) 18.2
Statutory Measures (Cont. Ops):
Group Revenue 1,715.2 1,696.5 1.1%
Autocentres Revenue 710.3 699.4 1.6%
Gross Margin 50.7% 48.5% 2.2ppts
Reported (Loss) / Profit Before Tax (30.0) 38.8 (68.8)
*Alternative Performance Measures (“APMs”) are defined on page 13. **Headline measures for FY24 include
results for the discontinued Viking and BDL tyre and wholesale operations consistent with the presentation
in FY24. The statutory measures exclude these discontinued businesses as reported in the FY24
consolidated financial statements. The narrative below is based on headline measures, as these include the
ongoing cost of running the discontinued tyre supply chain which is now outsourced.
FY25 highlights
▪ Strong financial performance with Group sales up 2.5% on a like-for-like (“LfL”) basis and 6.4% growth
in underlying PBT to £38.4m, above the previously guided £32m to £37m range.
▪ 250bps of gross margin expansion YoY, £35m of cost savings and £43.0m of free cash generation (FY24:
£29.4m) as momentum grew through H2. Ended the year with balance sheet net cash.
▪ Total dividend increased by 10% to 8.8p, in line with policy.
▪ 50 Fusion locations are now trading and are on track to double garage-level profitability at maturity
with an average payback period of c.2 years, improving the garage experience for customers and
colleagues and more closely linking the motoring assets within a town.
▪ Membership of the Halfords Motoring Club exceeded 5m customers.
Henry Birch appointed as Chief Executive Officer in April with new Managing Directors appointed to run the
Retail and Autocentres businesses.
Henry Birch, Chief Executive Officer of Halfords, commented:
“I am very pleased to be announcing a positive set of results for Halfords. The business has delivered a
strong financial performance, made good strategic progress and has a clear plan in place to tackle
external inflationary forces. Halfords has a unique combination of retail stores, garages and mobile vans,
a trusted brand, scaled omnichannel infrastructure, and access to valuable proprietary data. It is an
exciting time to be joining and I see significant potential to optimise and grow this fantastic business.”
Strong financial performance
▪ FY25 Group LfL sales up 2.5% YoY (reported sales up 1.1%) with Autocentres up 3.7% (c.40% of sales)
and Retail up 2.1% (c.60% of sales). Motoring now represents c.80% of sales.
▪ Gross margin up 2.5 ppts YoY to 50.7% (FY24: 48.2%), accelerating vs. H1 (H1 FY25 gross margin up
1.6ppts YoY), with further gains from Better Buying, pricing optimisation, mix into higher margin
services and favourable hedged FX rates.
▪ Delivered cost savings of c.£35m, offsetting c.£33m of inflation (mostly due to increasing labour
costs as a result of a c.10% increase in the minimum wage and maintenance of an appropriate
differential for skills).
▪ Underlying PBT of £38.4m (FY24: £36.1m), above the top end of previous guidance and up 6.4% YoY.
Reported loss of £30.0m (FY24: profit of £38.8m) primarily due to a non-cash goodwill impairment
driven by the impact on discount rates of an increase in UK gilt yields over the last 12 months as
applied to revised forecasts which incorporate changes to National Insurance and minimum wage rates
through the forecast period.
▪ Autocentres underlying EBIT (ex-Avayler) up 21.2% to £18.3m, reflecting Better Buying, strong growth
in Service, Maintenance and Repair (“SMR”) and productivity gains. Underlying Autocentres EBIT (inc.
Avayler) was £15.7m and reported Autocentres EBIT (inc. Avayler) was £1.2m due to the impact of
non-cash non-underlying items as detailed in the CFO report which follows.
▪ Retail underlying EBIT of £39.0m (FY24: £41.1m) slightly down YoY, with strong gross margin progress
and tight cost control offset by higher wage rates and colleague reward. Reported Retail EBIT loss was
(£14.9m) primarily due to the non-cash goodwill impairment noted above.
Resilient balance sheet
• Strong cash generation with a free cash inflow of £43.0m, up £13.6m YoY (FY24: £29.4m), driven by the
increase in underlying profitability and disciplined working capital management.
• Continued progress on inventory with stock down £12.3m YoY supporting an increased average cash
position which resulted in lower interest expense YoY.
• Ended the year with net cash (pre-IFRS16) of £10.1m, an improvement of £18.2m YoY.
• Final dividend of 5.8p declared taking the total FY25 dividend to 8.8p, an increase of 10.0% (FY24:
8.0p).
Current trading and outlook 1 1
• Trading in the early weeks of FY26 is in line with expectations.
• As previously indicated, we plan to offset another year of elevated inflation in FY26 through a
combination of pricing, buying and cost opportunities. We continue to be somewhat cautious on the
outlook for consumer spending.
• We remain committed to a strategy emphasising motoring services across our unique combination of
Retail and Autocentres, the successful execution of which will enable significant value creation in
future years.
• Accordingly, we will make further progress towards our target of c.150 Fusion garages, delivering at
least 60 in FY26 and the balance in FY27 with average capex of c.£200k per site.
• In FY26 we will continue to invest in Halfords Motoring Club, our digital customer experience and
contact centre technology, and systems and leadership capability across the business.
Investor and analyst meeting:
A presentation for analysts will take place at 10am at Peel Hunt, 7th Floor, 100 Liverpool St, London EC2M
2AT. To join the live webcast of this presentation please follow this link:
2 Halfords Group plc FY25 Preliminary Results - Webcast
A recording will subsequently be uploaded to 3 www.halfordscompany.com.
For further information:
Investors:
Holly Cassell, Director of Investor Relations & ESG 4 investor.relations@halfords.co.uk
Media:
Rob Greening / Jane Glover, Sodali & Co. 5 halfords@sodali.com
Notes to Editors
6 www.halfords.com 7 www.avayler.com 8 www.tredz.co.uk 9 www.halfordscompany.com
Notes to Editors
Halfords is the UK’s leading provider of motoring and cycling services and products. Customers shop at 373
Halfords stores, two Performance Cycling stores (trading as Tredz), 542 garages (trading as Halfords
Autocentres, McConechy’s, Universal, National Tyres and Lodge Tyre) and have access to 280 mobile service
vans (trading as Halfords Mobile Expert and National) and 504 commercial vans. Customers can also shop at
halfords.com and tredz.co.uk for pick up at their local store or direct home delivery, as well as booking
garage services online at halfords.com. Through its subsidiary Avayler, Halfords also sells the Group’s
bespoke, internally developed software as a SaaS solution to major clients in the US, Europe and
Australia.
Cautionary statement
This report contains certain forward-looking statements with respect to the financial condition, results
of operations, and businesses of Halfords Group plc. These statements and forecasts involve risk,
uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in
the future. There are a number of factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking statements. These forward-looking
statements are made only as at the date of this announcement. Nothing in this announcement should be
construed as a profit forecast. Except as required by law, Halfords Group plc has no obligation to update
the forward-looking statements or to correct any inaccuracies therein.
CEO Review
Strong business performance
I would like to begin by thanking every single Halfords colleague for their truly exceptional efforts in
delivering the FY25 results that we are announcing today. These results represent a fantastic outcome
against a challenging backdrop, which included a 10% increase in the National Living Wage, low consumer
confidence driving elevated savings rates and weak discretionary spending, and ongoing geopolitical
uncertainty. Despite this backdrop, we delivered like-for-like sales growth of 2.5%, a 250bps increase in
our gross margin and a further £35m of cost savings. Combined, these results have enabled underlying
profit before tax to increase by 6.4% to £38.4m, even after the reinstatement of performance-based
colleague incentives, reflecting the strong progress made during the year. We have converted 28 garages to
our Fusion format since our interim results announcement, taking the total number of Fusion garages
trading to 50, and acquired our 5 millionth Halfords Motoring Club member. And we have invested
significantly in leadership capability, positioning us for further success in the years ahead.
Halfords’ differentiated eco-system
In my first set of results as chief executive of Halfords, I wanted to outline what attracted me to this
fantastic business. As the leading provider of motoring and cycling products and services in the UK,
Halfords offers customers an unmatched level of service, expertise and convenience through its national
network of retail stores, autocentres and mobile vans. It is this combination of assets which makes the
business truly differentiated as a motoring services provider, with the benefits clear to see in the first
wave of Fusion towns delivered over the last 12 months. Halfords’ trusted brand, developed over more than
a century, is instantly recognisable to millions of customers who in turn provide us with data on nearly
half the UK car parc. This combination of category leadership, a strong and trusted brand underpinned by a
responsible approach to doing business, a scaled physical and digital operating infrastructure, 12,000
committed colleagues and unrivalled data is what makes us both unique and, I believe, capable of
significant growth and value creation.
I have spent my first 10 weeks getting under the skin of the Halfords business: spending time in our
stores, garages and distribution centres to experience our operations in action, conducting deep dives
into each business unit, and understanding what makes Halfords really tick. I have been made to feel very
welcome by every single colleague I have met to date, and it’s clear that our people are at the heart of
what makes Halfords so unique – through their passion, expertise, and commitment to serving our customers
to the highest possible standard, every single day. This gives me a great deal of optimism as I look to
the future of Halfords as a truly data-driven, digitally enabled business with the needs of customers at
our core.
The strategy, put in place by my predecessor Graham Stapleton, remains the right one, and I would like to
pay tribute to him for the critical role he played in taking Halfords from a traditional, store-based
retailer to a business deriving more than half of its revenue from services, with an emphasis on
less-discretionary B2B and motoring categories. My priority is to optimise the Halfords business by
leveraging its unique strengths to drive profitable growth and enhance returns for shareholders, while
continuing to create value for all stakeholders which includes our strong commitment to our ESG agenda.
While there is more to do to realise these benefits to their fullest potential, I can already see
significant opportunities in the business and would like to thank all our colleagues for their ongoing
support through this journey.
Optimising garage services
The results of the investments we are making in both strategic initiatives and operational excellence are
becoming apparent in the profitability of our Autocentres business. The Autocentres segment delivered a
21.2% increase in earnings before interest and tax compared to last year 10 2 as the Fusion roll out has
accelerated and learnings from the programme have informed our approach to talent acquisition and
colleague development more broadly across our garage estate. We have continued to profitably grow our
presence in the highly fragmented and strategically important Service, Maintenance and Repair (“SMR”)
market, where increasing labour costs have been reflected in industry-wide price increases. The Fusion
Motoring Services programme is more than a physical refit of our garages and retail car parks – it is a
people-led transformation, with changes to the culture and operating model in our garages. Garage
leadership is therefore critical in driving the excellent returns we have seen in the 50 sites delivered
to date, with garage-level contribution on track to double on average at maturity, delivering an average
payback period of just two years. We continue to see scope for c.150 Fusion garages in total. We have
budgeted for at least 60 Fusion conversions in FY26 taking the total number trading by the end of the year
to more than 100, with the remainder to follow in FY27.
Integral to the Fusion programme are more rigorous recruitment and induction processes for centre managers
which are now being introduced across our wider garage business. In locations where leaders have been
brought into the business using these processes, we have seen an increased emphasis on customer
experience, high quality standards and better identification of additional services required to improve
vehicle safety and performance, resulting in improved profitability and reduced colleague turnover. This
cultural shift is driving mix into higher margin SMR work, and when combined with increased servicing
capacity and referrals from store through the Fusion programme, results in the significant uplifts in
site-level profitability that we have reported to date.
Having reflected the increased labour costs introduced by last year’s Autumn Budget in our forecasts, we
have identified a number of sites which are sub-scale from a profitability perspective and as such cannot
be reconfigured to offer the level of customer experience to which we aspire. These sites are also often
located close to another Halfords garage earmarked for Fusion, i.e. with scope to increase capacity and to
offer an improved customer and colleague experience, and as such we have taken the decision to exit them.
The majority of impacted colleagues will be redeployed to nearby Halfords garages and the planned closures
will be immediately earnings accretive.
Further steps to optimise our garage estate are central to our plan for FY26 under the leadership of Adam
Pay, who takes over as Managing Director of Garages next month, joining Halfords from MyCar, Australia’s
largest garage group.
Our B2B business continues to provide important diversification and exposure to less discretionary
end-markets. The Fusion programme is increasing our ability to maintain national fleets by adding
specialist ramps and extra equipment for servicing light commercial vehicles and electric vehicles in our
consumer garages, and our Commercial Fleet Services (“CFS”) business has continued to grow its client list
having secured new contracts with major national businesses including Seras, Greenergy and Milk & More.
The activities which take place in our CFS business are considerably higher in risk than those in our
retail stores or consumer garages as much of the activity is at the roadside or relates to HGVs. Very
sadly, two of our colleagues working in the CFS business lost their lives this year, and I would like to
offer my sincerest condolences to their loved ones. We work hard to ensure that we implement effective
Health and Safety policies and procedures at all times and across all areas of our business and we also
strive to continuously develop and improve these so that we ensure the safety of our colleagues. We
continue to invest in Health and Safety and embed our culture of safety across the whole business.
Avayler, our proprietary garage management software product, continues to make progress with its flagship
US contract with Bridgestone reaching a key milestone in H1. That contract has progressed beyond testing
into pilot phase and is now live in Bridgestone’s first new-format site in Charlotte, North Carolina. As
expected, it remains loss-making (FY25 loss of £2.6m on revenue of £2.7m; FY24 loss of £1.3m on revenue of
£2.3m). One of Avayler’s key North American clients, ATD, entered a Chapter 11 process in FY25 and as such
we do not expect to generate further revenues from that contract in FY26. We will continue to focus our
efforts on successful delivery of our major contracts with garage services businesses worldwide.
Leveraging the retail business
Retail is where the vast majority of customers first interact with our brand and remains responsible for
more than half of Group sales. As such we are delighted to see our store sales returning to growth while
recovering gross margin after a challenging few years for the sector. Our retail offer emphasises
specialism, advice and service add-ons, providing a clear point of difference and corresponding pricing
opportunity vs. competitors in this space which are predominantly generalist retailers or online
pureplays.
Our motoring services proposition does not reside purely in our garages; in fact, we conduct around 80% of
vehicle service events in the car parks of our retail store estate. Our ability to provide on demand
services in-store, including fitting the ‘3Bs’ (bulbs, batteries and blades), repairing windscreens and
conducting basic vehicle checks to identify opportunities for referral to the local garage, is a critical
differentiator in the Halfords model. In fact, more than a third of the 3Bs products purchased in the year
were fitted by our in-store specialists, with the proportion of revenue derived from store-based services
increasing in both motoring and cycling. At the same time, vehicle checks conducted in our retail store
car parks allow us to identify additional work which can be booked directly into our local garage,
allowing us to reach customers before our competitors and reduce reliance on paid media, with a
corresponding saving in marketing spend compared to others in the market.
It is our integrated motoring services offer, which also includes our mobile van proposition, which truly
differentiates Halfords by providing customers with the ultimate convenience. Fusion seeks to amplify this
critical point of difference versus our competitors, none of whom can offer customers our unique blend of
product, service and expertise through a national network of physical infrastructure in addition to an
effective online presence.
The majority of signups to our 5m-strong Halfords Motoring Club, which offers discounted or free MOTs
depending on membership tier, take place either in our retail stores or online. Club membership is
associated with positive customer behaviours (frequency, average spend, cross-shop) and ultimately higher
lifetime value, also providing meaningful benefits for our Autocentres by creating a low-cost acquisition
route for high margin SMR work.
Premium membership offers customers enhanced benefits in return for an annual fee and currently generates
c.£18m of recurring annual subscription revenue while driving even more valuable behaviours, with
customers spending around 3x as much as non-members on average. Around half of Premium members start life
with a free membership that they subsequently upgrade, further demonstrating the value of the Club
proposition to customers. With further investment into our platform and data capability, I am excited by
the potential that exists in Halfords Motoring Club and the future value it could unlock.
Within our retail markets, in motoring we have continued to invest in our market leading own-brand ranges,
notably in car cleaning where we have further expanded our ‘Halfords Advanced’ range, offering customers
exceptional value for money for a high-quality product. We have supplemented this with additional breadth
in branded premium cleaning ranges from Autoglym and Chemical Guys. Dash cams are a great example of a
product category where the customer benefits from our specialist knowledge and service capability
alongside an extensive product range, performing strongly in the year with over half of the units sold
also being fitted in store.
In the cycling market, assisted by warm spring weather, we have seen positive signs of recovery in recent
months. The cycling market has faced numerous challenges in recent years. Products are manufactured on
long lead times and the industry found itself with significant excess inventory when the pandemic boom
gave way to a cost-of-living crisis and associated collapse in demand that has persisted for some time.
Halfords’ inventory has been well-managed throughout; however, the industry has been highly promotional
through a period of consolidation. While our cycling business has undoubtedly been impacted by these
factors, our scale in the market and focus on exclusive brands has enabled us to be more disciplined in
our promotional activity while increasing our market share in the post-pandemic period 11 3 .
We have also continued to invest in new product development, stretching our Boardman brand into more
premium product ranges where demand has been more resilient, growing our Cycle2Work business, and
all-the-while maintaining our strong position in the adult leisure segment, as well as in kids’ bikes
where our sales are around two-thirds of the market in volume terms. With our market leading position,
championing active travel is an important aspect of our ESG strategy. In FY25 we partnered with
sustainable transport organisation, Sustrans, to conduct research into the barriers to active travel for
children and their families and are using the findings to influence the UK Government’s Cycling and
Walking Investment Strategy which is currently being updated. Cycling remains a core part of our
portfolio, and we are optimistic about our prospects in a market with some very clear recovery drivers
over the mid to long-term.
I continue to believe there is scope to generate significantly improved profit from our retail business as
revenue growth returns, particularly online but also by improving our store experience for customers. I am
delighted to be welcoming Jess Frame as our Managing Director of Retail in the coming months. Jess brings
20 years of senior leadership experience in Retail and Consumer, including most recently as Managing
Partner of Boston Consulting Group’s London office. I look forward to working with her and am very
confident in her ability to take our retail business to the next level.
Driving cost and efficiency
The challenging market conditions we have faced in recent years have required significant cost savings to
be made in the business, with c.£70m of savings delivered in the three years to FY24. While our success in
the past makes incremental savings more challenging to find, the team delivered another £35m of
efficiencies in FY25 to broadly offset the £33m of inflation running through the business in the year. The
key initiatives behind this result are largely as described in our interim results and we are delighted to
see these programmes going from strength to strength. As a reminder:
▪ Our Better Buying programme, now in its second year, contributed £21m of incremental gross profit as
we leveraged stronger partnerships with a smaller number of key suppliers.
▪ The restructuring of our tyre supply chain announced at the start of the year, with wholesale tyre
operations outsourced to Bond International, resulting in more than £4.4m of cost saved alongside
improved same and next day availability across our garage network.
▪ Disciplined working capital management resulted in a higher average cash balance through the period
and correspondingly lower interest charge, down £2.2m year-on-year. We consequently ended the period
with net cash of £10.1m (excluding IFRS16 lease debt), an improvement of £18.2m in our closing
position.
Current trading
The positive trading momentum in some categories in the final quarter of FY25 continued into the new
financial year, helped by warm spring weather and a late Easter. However, trends have varied across our
markets – for example, the Cycling market has performed very strongly but the Tyres market has exhibited
further declines.
Outlook 12 4
As I look ahead to FY26, I am cautiously optimistic: optimistic because of the unique position Halfords
has in the market, the differentiated nature of our eco-system, and the commitment of our colleagues to
realising the business’s full potential; but cautious because of continued macroeconomic uncertainty and
its impact on the way our customers feel about spending their money. While inflation appears to be
moderating and interest rates are falling, the negative outlook for employment and the impact of
geopolitical instability continues to weigh on confidence and is keeping the savings ratio high despite
rising real incomes. However, the year has started as expected and with levers including pricing strategy
and further buying synergies we expect to be able to mitigate the substantial cost headwinds that we face
in the year ahead.
We have also experienced challenges during the deployment of a new third-party warehouse management system
into our second distribution centre (“DC”) in Coventry following its successful implementation in our
Washford DC last year. While the issues have been well-managed with only limited disruption to stock
availability in our stores, our contingency plans have resulted in non-recurring additional costs to the
business. We continue to work with the system provider to optimise performance and return the site to full
productivity, which we expect to achieve before the end of H1.
Our plans in FY26 focus on maximising the returns from our existing asset base while investing in our
platform to unlock the value of our unique combination of assets. Our investment programme will
prioritise:
▪ Continuation of priority initiatives from FY25, including further roll out of Fusion to more than 100
locations in total and improvements to Halfords Motoring Club;
▪ Investment to improve customer experience, including in our contact centre and digital channels; and,
▪ Preparatory work to support implementation of a new ERP system in the business.
As a result of the factors described above, including the additional costs incurred in H1 in relation to
the new warehouse management system, FY26 profit before tax is expected to be weighted to H2.
FY26 capex is expected to be in the region of £60m to £70m, including the cost of the continued Fusion
roll out. This increase in capital expenditure, together with payment of the FY25 colleague bonus, results
in a forecast reduction in free cash flow year on year with FY26 net debt to EBITDA expected to fall
comfortably within the target range of 0.0x to 0.8x excluding leases.
Next update
In the coming months, I intend to spend more time identifying priority areas for optimisation in the
business where I can see the most significant opportunities to unlock future value. My early impressions
suggest that technology and data are strong candidates here, but I plan to update the market with a more
comprehensive assessment when we release our interim results later in the year.
Our next update will be the HY26 trading statement, which is expected in October 2025.
Henry Birch
Chief Executive Officer, Halfords Group plc
25 June 2025
CFO Report
Group financial results
All numbers are stated on a post-IFRS 16 basis unless otherwise indicated.
Result from Continuing Operations FY25 FY24 Change
£m £m 25 vs 24
Revenue 1,715.2 1,696.5 1.1%
Gross Profit 869.1 822.6 5.7%
Gross Margin 50.7% 48.5% 2.2ppts
Underlying EBIT 49.5 56.2 (11.9%)
Underlying EBITDA 180.6 183.4 (1.5%)
Net Finance Expense (11.1) (13.1) 15.3%
Underlying Profit Before Tax 38.4 43.1 (10.9%)
Net Non-Underlying Items (68.4) (4.3)
Reported (Loss) / Profit Before Tax (30.0) 38.8
Underlying Basic Earnings per Share 13.8p 15.1p (8.6%)
In FY24, the Group entered into an agreement with specialist tyre distributor Bond International (“Bond”),
which now manages the tyre distribution and warehousing operations for the consumer garage business. This
restructuring resulted in the closure of the tyre wholesale and distribution operations that formed part
of the Axle Group acquisition in December 2021, and these closed operations were classified as
‘Discontinued’ in our accounts for FY24. The decision to outsource our tyre and warehousing operations to
Bond delivers significant financial benefit to the Group, however, it also results in some costs
previously incurred in the discontinued Viking operation now being reflected in the continuing consumer
garage business by way of a tyre distribution fee paid to Bond. A comparison to the results of Total
Operations last year better reflects relative performance.
A reconciliation of Underlying Profit Before Tax (“PBT”) from Continuing Operations to the Total FY24
result is provided in the table below. No operations were discontinued in the 52 weeks ending 28 March
2025 (“FY25”).
FY25 FY24 Change
£m £m 25 vs 24
Underlying Profit Before Tax from Continuing Operations 38.4 43.1 (10.9%)
Underlying Loss Before Tax from Discontinued Operations - (7.0) -
Underlying Profit Before Tax – Total Operations 38.4 36.1 6.4%
The following table shows the same results for FY25 as above but with Total Operations as the FY24
comparative and is the basis of the narrative which follows.
Result from Total Operations FY25 FY24 Change
£m £m 25 vs 24
Revenue 1,715.2 1,712.8 0.1%
Gross Profit 869.1 825.3 5.3%
Gross Margin 50.7% 48.2% 2.5ppts
Underlying EBIT 49.5 49.2 0.6%
Underlying EBITDA 180.6 177.8 1.6%
Net Finance Expense (11.1) (13.1) 15.3%
Underlying Profit Before Tax 38.4 36.1 6.4%
Net Non-Underlying Items (68.4) (16.2)
Reported Profit / (Loss) Before Tax (30.0) 19.9
Underlying Basic Earnings per Share 13.8p 12.7p 8.7%
FY25 Group underlying PBT of £38.4m (FY24: £36.1m) was up £2.3m or 6.4% compared to the result from Total
Operations in the prior period. This strong performance, despite continued inflationary and market
headwinds, resulted in the reinstatement of variable performance related incentives across the Group,
leading to increased costs year-on-year (“YoY”) which are reflected in these results.
Group underlying earnings before interest and tax (“EBIT”) was £49.5m (FY24: £49.2m), while Group
underlying earnings before interest, tax, depreciation and amortisation (“EBITDA”) was £180.6m (FY24:
£177.8m), reflecting an increased depreciation and amortisation charge in the period.
Group revenue of £1,715.2m grew 0.1% year-on-year, and 2.5% on a like-for-like (“LfL”) basis, despite
trading against strong comparatives from the previous year (FY24: +5.0%). H2 saw significant momentum as
trading improved in both the Retail and Autocentres businesses from the decline of 0.1% LfL reported in
H1.
The Group gross margin % was 50.7%, 250 basis points (“bps”) higher than the prior period. This very
strong performance reflected the success of our Better Buying programme and pricing optimisation, together
with a favourable mix into higher margin servicing categories in Autocentres. Gross margin % is now at the
highest level seen in the last three years.
Group operating costs of £819.6m grew 5.6% YoY (FY24: £776.1m). This was driven by the significant
inflationary impact of the 10% National Living Wage increases in FY25 and the reinstatement of variable
performance-related incentives, offset by operating cost efficiencies, including the benefit of
outsourcing tyre warehousing and distribution to Bond.
The Group’s underlying profitability and excellent working capital management supported a £13.6m increase
in free cash flow YoY to £43.0m (FY24: £29.4m). The resulting improvement in our average cash position
drove a 15.3% (equivalent to £2.0m) YoY reduction in net finance expenses.
In total, the cost and efficiency programme delivered £35m of savings, offsetting more than £33m of
inflationary headwinds.
Non-underlying items resulted in a charge of £68.4m during the period (FY24: £4.3m charge). The FY25
charge largely relates to a non-cash goodwill impairment in the retail segment reflecting changes to the
discount rate based on rising UK gilt yields as applied to updated forecasts which reflect the additional
costs introduced by the Autumn Budget. Further details are provided below.
Detailed analysis of our sales performance, gross margin and operating costs are covered under ‘Reporting
Segments’ below. Unallocated costs of £5.2m (FY24: £5.4m) represent amortisation charges in respect of
intangible assets acquired through business combinations which arise on consolidation of the Group.
Reporting segments
Retail
FY25 FY24 Change* Sales mix
£m £m 25 vs 24 %
Revenue 1,004.9 997.1 2.1%
• Motoring 648.6 644.6 2.3% 64.5%
• Cycling 356.3 352.5 1.7% 35.5%
Gross Profit 495.7 471.5 5.1%
Gross Margin 49.3% 47.3 % 2.0ppts
Operating Costs (456.7) (430.4) (6.1%)
Underlying EBIT 39.0 41.1 (5.1%)
Non-underlying items (53.9) (1.5)
EBIT (14.9) 39.6
Underlying EBITDA 118.7 123.2 (3.7%)
*Change in revenue is on a LfL basis
In Retail, our services-led, specialist proposition resonated well with customers and resulted in LfL
sales growth of 2.1% compared to the previous period, with total Revenue reaching £1,004.9m. Pleasingly,
growth came from both Motoring and Cycling sales, with both performing ahead of our initial expectations
and accelerating through H2. Cycling performed particularly well in the final months of the year, with
kids’ bikes, Cycle2Work and Tredz continuing to be the stronger categories. In Motoring, our focus was on
margin optimisation through effective pricing and promotion activity.
Success in our pricing and promotional strategy, continued gains from our Better Buying programme and an
improvement in the FX rate through cost of goods sold enabled us to deliver 2.0 percentage points (“ppts”)
of YoY Retail gross margin expansion.
Combined with ongoing cost savings, these factors enabled us to significantly grow operating profit in the
Retail business despite a 10% increase in the National Living Wage. This strong performance resulted in
the reinstatement of performance-related variable incentives, the triggering of which resulted in
reporting of Retail Underlying EBIT of £39.0m, a small decline YoY (FY24: £41.1m).
Autocentres
As in the Group-level disclosure above, the table below shows Autocentres segment performance with the
prior period comparative reflecting only Continuing Operations.
Continuing Operations FY25 FY24 Change*
£m £m 25 vs 24
Revenue 710.3 699.4 3.7%
Gross Profit 373.4 351.1 6.4%
Gross Margin 52.6% 50.2% 2.4ppts
Operating Costs (357.7) (330.3) (8.3%)
Underlying EBIT – continuing operations 15.7 20.8 (24.5%)
Non-underlying items (14.5) (2.8)
EBIT – continuing operations 1.2 18.0
Underlying EBITDA – continuing operations 62.0 60.2 2.9%
*Change in revenue figures is on a LfL basis
A reconciliation of Autocentres Underlying EBIT from Continuing Operations to the Total FY24 result is
provided in the table below. No operations were discontinued in FY25.
FY25 FY24 Change
£m £m 25 vs 24
Underlying EBIT from Continuing Operations 15.7 20.8 (24.5%)
Underlying EBIT from Discontinued Operations - (7.0) -
Underlying EBIT – Total Operations 15.7 13.8 13.8%
The following table shows the same information as above but with Total Operations as the FY24 comparative
(i.e. including the discontinued Viking and BDL tyre and wholesale operations as reported previously). As
above, the narrative which follows uses the results of Total Operations as the prior period comparative as
they include the ongoing cost of running the discontinued tyre supply chain operations of Viking and BDL,
which are now outsourced to Bond.
Total Operations FY25 FY24 Change*
£m £m 25 vs 24
Revenue 710.3 715.7 3.7%
Gross Profit 373.4 353.8 5.6%
Gross Margin 52.6% 49.4% 3.2ppts
Operating Costs (357.7) (340.0) 5.2%
Underlying EBIT – total operations 15.7 13.8 13.8%
Non-underlying items (14.5) (14.7)
EBIT – total operations 1.2 (0.9)
Underlying EBITDA – total operations 62.0 54.6 13.6%
*Change in revenue figures is on a LfL basis
Autocentres LfL sales growth of 3.7% to £710.3m (£707.6m ex-Avayler) was another very pleasing performance
in the context of the exceptionally strong 10.7% LfL sales growth reported in FY24, especially given
ongoing decline in the consumer tyres market. As such, this result is reflective of ongoing success in the
strategically important and highly fragmented Service, Maintenance and Repair (“SMR”) market, supported by
investment in garage leadership capability and the rollout of our Fusion motoring services model.
Improvements in our pricing strategy and gains from Better Buying accelerated in H2 and, combined with the
impact of sales mixing into higher margin SMR based on the factors outlined above, resulted in 3.0 ppts
expansion in the Autocentres gross margin to 52.6%.
Costs were well controlled but grew as a percentage of revenue, largely due to the increase in the
National Living Wage referred to above as we sought to maintain a pay differential for skills, investment
in garage leadership capability and the reinstatement of variable performance incentives. Investment in
leadership has already begun to yield benefits, with improved recruitment and training practices for local
management improving service quality, resulting in more frequent identification of additional servicing
requirements on vehicles coming through our garages and increasing sales of margin accretive add-ons such
as wheel alignment when a new tyre is fitted.
We have also realised £4.4m of savings through the tyre supply chain restructuring announced at the start
of the year, which involved the outsourcing of wholesale operations to Bond. In addition to the reduction
in cost from this arrangement, we have seen better tyre availability in our garages and our ability to
service customers making a distressed tyre purchase has improved as a result.
Ex-Avayler, Autocentres generated underlying EBIT of £18.3m in the year, an increase of 21.2% YoY (FY24:
£15.1m). This is an excellent result reflecting a very strong H2 performance which demonstrates the future
potential of this strategically important part of the business.
The Avayler business continues to be reported within the Autocentres segment but now operates as a
standalone business within the Group. It generated revenue of £2.7m (FY24: £2.3m) but incurred a loss
before interest and tax of £2.6m (FY24: £1.3m) as investment continued. During the period ATD, a customer
based in North America, entered a Chapter 11 process. The consequent loss of this key customer is expected
to impact Avayler’s financial performance in FY26.
Including Avayler, underlying EBIT increased by 13.8% to £15.7m (FY24: £13.8m).
Net non-underlying items
The following table outlines the components of the non-underlying items recognised in the period:
FY25 FY24
£m £m
Organisational Restructure Costs (1.5) (7.7)
Closure Costs (14.9) 4.4
Acquisition and Investment-Related Fees - (1.0)
Cloud Migration Costs (2.9) -
Impairment of non-current assets (49.1) -
Net Non-Underlying Items Charge (68.4) (4.3)
The majority of these charges are non-cash accounting adjustments (cash non-underlying items in FY25
totalled £5.7m). In particular:
▪ FY25 closure costs of £14.9m (FY24: £4.4m credit) mostly related to the decision to exit a number of
sites under our garage optimisation programme (£11.3m of which is non-cash). This decision followed a
full review of the future profitability of the Group’s physical estate in light of the increased
labour cost introduced by the Autumn Budget, and with reference to sites’ suitability for the Fusion
programme. The closure of these garages will be immediately earnings accretive with colleagues mostly
redeployed to alternative sites and a degree of trade transfer in the local area. Non-underlying costs
of £1.4m are expected in FY26 relating to this decision.
▪ FY25 impairment of non-current assets of £49.1m (FY24: nil) predominantly relates to retail segment
goodwill and reflects an increased discount rate due to trends in UK gilt yields over the last 12
months. This increased discount rate is applied to forecasts which reflect enacted and anticipated
changes to Employers’ National Insurance Contributions and the National Living Wage from FY26. As a
result of this review, the Group recognised a non-cash impairment expense of £47.9m in relation to
goodwill and £1.2m in relation to right of use assets.
▪ FY25 organisational restructure costs of £1.5m (FY24: £7.7m) related to the ongoing warehouse
management system replacement programme. Following successful deployment in our Distribution Centre
(“DC”) in Washford in FY25, implementation in our Coventry DC has been less straightforward.
Deployment into the final DC has been delayed while Coventry systems are optimised by our delivery
partner and as such the project is expected to conclude by FY27.
Portfolio management
The Group’s property portfolio remains extremely flexible. With the exception of nine long-leasehold and
three freehold properties in Autocentres, the Group’s locations are occupied under short-term leases, the
majority of which are on standard lease terms, typically with a five-to-15-year term at inception.
The Retail store portfolio as at 28 March 2025 comprised 373 stores (FY24: 384 stores), having closed 11
stores during the period as we took our usual, rigorous approach to evaluating leases as they come up for
renewal. The average remaining lease length on our Retail store estate is 2.6 years, with 346 leases,
equivalent to more than 90% of our portfolio, expiring within five years.
The Autocentres portfolio as at 28 March 2025 comprised 632 locations (542 consumer garages and 90
commercial locations) (FY24: 636 locations including 547 consumer garages and 89 commercial locations). In
late FY25, a decision was taken to close a small number of these garage locations as detailed under ‘Net
non-underlying items’ above. The average remaining lease length on our Autocentres is around five years,
and as in retail, we carefully evaluate all lease renewals when due.
As at 28 March 2025 there were a total of 784 vans in operation, 280 of which were Halfords Mobile Expert
and National branded and 504 commercial vans (FY24: 770 vans in total).
Net finance expense
As noted above, excellent cash and working capital management resulted in a £13.6m increase in free cash
flow YoY to £43.0m (FY24: £29.4m). The resulting improvement in our average cash position drove a 15.3%
(equivalent to £2.0m) YoY reduction in net finance expenses, from £13.1m in FY24 to £11.1m in FY25.
Taxation
The taxation charge for the period was £3.8m (2024: £5.5m), including a £4.6m credit (FY24: £0.5m credit)
in respect of tax on non-underlying items. The effective tax rate of (12.8%) (FY24: 24.6%) is lower than
the UK corporation tax rate principally due to the impact of a non-deductible impairment of goodwill of
£47.9m in the period as described above.
Earnings per share (“EPS”)
Underlying Basic EPS was 13.8 pence (FY24: 12.7 pence) and after non-underlying items was (15.4) pence
(FY24: 7.8 pence). Basic weighted-average shares in issue during the period were 217.9m (FY24: 217.4m).
The increase in the basic weighted-average shares in issue during the period is due to the reduction in
the weighted-average number of shares held by the Employee Benefit Trust.
Dividend
Following the payment of an interim dividend of 3.0 pence per share on 17 January 2025 (FY24: 3.0 pence),
the Board is proposing an FY25 final dividend of 5.8 pence per share (FY24: 5.0 pence) which will absorb
an estimated £12.6m (FY24: £11.0m) of shareholders’ funds. This is consistent with our stated policy which
requires our dividend to be 1.5x to 2.5x covered by profit after tax. It will be paid on 12 September 2025
to shareholders who are on the register of members on 8 August 2025.
Capital expenditure
Capital expenditure in the period totalled £52.7m (FY24: £43.7m).
Retail capital expenditure was £25.5m (FY24: £22.8m), of which £11.6m (FY24: £13.5m) related to IT
infrastructure and e-commerce, mainly focused on the development of the loyalty offer in Halfords Motoring
Club and the Group’s websites. £13.9m (FY24: £9.3m) was invested in stores, including £5.6m on relaying
space in a small number of stores.
Autocentres capital expenditure was £27.2m (FY24: £20.9m) of which £7.3m (FY24: £10.3m) related to IT
software expenditure on the development of Avayler and PACE, the garage workflow system. Expenditure on
property and garage equipment in the period was £19.9m (FY24: £10.6m), of which c.£7.6m was incurred in
supporting the rollout of the Fusion Motoring Services model across our estate.
Inventories
Group inventory held at the period end was £225.2m (FY24: £237.5m). The £12.3m reduction in inventory
holding YoY reflects the Group’s success in its continued efforts to improve its inventory management.
Retail inventory was £170.3m (FY24: £178.8m), a decrease of £8.5m YoY. Autocentres inventory was £54.9m
(FY24: £58.7m), a decrease of £3.8m YoY.
Cashflow and borrowings
Adjusted operating cashflow during the period was £185.7m (FY24: £185.6m). After taxation, capital
expenditure, net finance costs, foreign exchange movements, supplier financing and lease payments, a free
cash inflow of £43.0m (FY24: £29.4m) was generated in the period. The increase in free cashflow of £13.6m
from FY24 is due to strong underlying performance (noting that colleague incentives will be cash paid in
FY26), disciplined working capital management and a net income tax repayment in the period.
Group net debt, including IFRS 16 lease debt, was £261.3m at the balance sheet date (FY24: £315.3m)
consisting of £19.1m of cash (FY24: £13.3m), £nil bank overdrafts (FY24: £nil), (£8.8m) in relation to the
Group’s revolving credit facility (FY24: £19.6m), (£0.2m) of other borrowings (FY24: (£1.8m)) and
(£271.4m) of lease liabilities (FY24: (£307.2m)). The £54.0m decrease in the Group’s net debt from FY24
relates to a £35.8m reduction in lease liabilities, a £5.8m cash inflow, (£0.4m) of other non-cash
movements, and net repayment of the Group’s revolving credit facility and other borrowings of £12.8m.
Excluding lease debt, Group net cash improved by £18.2m to £10.1m (FY24: net debt of (£8.1m)).
Jo Hartley
Chief Financial Officer
25 June 2025
Glossary of Alternative Performance Measures
In the reporting of financial information, the Directors have adopted various Alternative Performance
Measures (“APMs”). APMs should be considered in addition to IFRS measurements. The Directors believe that
these APMs assist in providing useful information on the underlying performance of the Group, enhance the
comparability of information between reporting periods, and are used internally by management to measure
the Group’s performance.
The key APMs that the Group uses are as follows:
1. Like-for-like (“LfL”) sales represent revenues from stores, centres and websites that have been
trading for at least one financial reporting period (but excluding prior period sales of stores and
centres closed during the period) at constant foreign exchange rates.
2. Underlying EBIT are results from operating activities before non-underlying items. Underlying EBITDA
further removes depreciation and amortisation.
Total operations Continuing operations
FY25 FY24 FY25 FY24
£m £m £m £m
Underlying EBIT 49.5 49.2 49.5 56.2
Depreciation & Amortisation 131.1 128.6 131.1 127.2
Underlying EBITDA 180.6 177.8 180.6 183.4
3. Underlying Profit Before Tax is profit before income tax and non-underlying items as shown in the
Condensed Consolidated Income Statement.
4. Underlying Earnings Per Share is profit after income tax before non-underlying items as shown in the
Condensed Consolidated Income Statement, divided by the weighted average number of ordinary shares in
issue during the period. The weighted average number of shares excludes shares held by an Employee
Benefit Trust and has been adjusted for the issue/purchase of shares during the period.
5. Net Debt is current and non-current borrowings less cash and cash equivalents, both in-hand and at
bank, as shown in the Condensed Consolidated statement of financial position, as reconciled below:
FY25 FY24
£m £m
Cash and cash equivalents 19.1 13.3
Borrowings – current (78.8) (80.9)
Borrowings – non-current (201.6) (247.7)
Net Debt (261.3) (315.3)
6. Net Debt to Underlying EBITDA ratio is represented by the ratio of Net Debt to Underlying EBITDA (both
of which are defined above).
7. Free Cash Flow is defined as net cash from operating activities less capital expenditure, net finance
costs, supplier financing payments and lease payments; as reconciled below:
FY25 FY24
£m £m
Net cash from operating activities 194.7 177.9
Add back:
Impairment of property, plant and equipment and right of use asset - (2.8)
Capital expenditure (53.2) (45.6)
Net finance costs (0.9) (3.2)
Supplier financing (1.1) (4.1)
Lease payments (96.5) (92.8)
Free Cash Flow 43.0 29.4
Halfords Group plc
Consolidated Income Statement
For the 52 weeks to 28 March 2025
For the period 52 weeks to 28 March 2025 52 weeks to 29 March 2024
Before Non-underlying Before Non-underlying
non-underlying items Total non-underlying items Total
items (note 4) items (note 4)
Notes £m £m £m £m £m £m
Revenue 1,715.2 - 1,715.2 1,696.5 - 1,696.5
Cost of sales (846.1) - (846.1) (873.9) - (873.9)
Gross profit 869.1 - 869.1 822.6 - 822.6
Operating 2 (820.3) (68.4) (888.7) (766.4) (4.3) (770.7)
expenses
Other income 0.7 - 0.7
Results from
operating 3 49.5 (68.4) (18.9) 56.2 (4.3) 51.9
activities
Net finance 5 (11.1) - (11.1) (13.1) - (13.1)
expense
Profit / (loss)
before income 38.4 (68.4) (30.0) 43.1 (4.3) 38.8
tax
Income tax 6 (8.4) 4.6 (3.8) (10.3) 0.5 (9.8)
expense
Profit / (loss)
after tax from 30.0 (63.8) (33.8) 32.8 (3.8) 29.0
continuing
operations
Loss after tax
from 9 - - - (5.2) (6.9) (12.1)
discontinued
operations
Total profit /
(loss) for the
year (continued 30.0 (63.8) (33.8) 27.6 (10.7) 16.9
and
discontinued)
Attributable to:
Equity 30.2 (63.8) (33.6) 27.6 (10.7) 16.9
shareholders
Non-controlling (0.2) - (0.2) - - -
interest
Earnings per
share
Basic 8 13.8p (15.4)p 15.1p 13.3p
(continuing)
Diluted 8 13.2p (15.4)p 14.5p 12.7p
(continuing)
Basic
(continuing and 8 13.8p (15.4)p 12.7p 7.8p
discontinued)
Diluted
(continuing and 8 13.2p (15.4)p 12.2p 7.4p
discontinued)
The notes on pages 20 to 29 form part of these condensed consolidated financial statements.
Halfords Group plc
Consolidated Statement of Comprehensive Income
For the 52 weeks to 28 March 2025
52weeks to 52weeks to
28 March 2025 29 March 2024
£m £m
(Loss)/profit for the period from continuing operations (33.8) 29.0
Other comprehensive income
Cash flow hedges:
Fair value changes in the period 0.1 (1.3)
Income tax on other comprehensive income (0.2) (0.4)
Other comprehensive (loss) for the period, net of income tax (0.1) (1.7)
Total comprehensive (loss) / income from continuing operations (33.9) 27.3
Loss for the period from discontinued operations - (12.1)
Total comprehensive loss from discontinued operations - (12.1)
Total comprehensive (loss) / income (33.9) 15.2
Attributable to:
Equity shareholders (33.7) 15.2
Non-controlling interest (0.2) -
All items within the Consolidated Statement of Comprehensive Income are classified as items that are or
may be recycled to the Income Statement.
The notes on pages 20 to 29 form part of these condensed consolidated financial statements.
Halfords Group plc
Consolidated Statement of Financial Position
For the 52 weeks to 28 March 2025
28 March 29 March
2025 2024
Notes £m £m
Assets
Non-current assets
Intangible assets 432.7 483.9
Property, plant and equipment 91.7 89.5
Right-of-use assets 11 242.3 278.3
Derivative financial instruments 0.3 -
Trade and other receivables 2.5 2.3
Deferred tax asset 7.3 5.1
Total non-current assets 776.8 859.1
Current assets
Inventories 225.2 237.5
Trade and other receivables 153.7 161.0
Current tax asset - 8.4
Derivative financial instruments 0.6 0.2
Cash and cash equivalents 19.1 13.3
Total current assets 398.6 420.4
Total assets 1,175.4 1,279.5
Liabilities
Current liabilities
Borrowings 10 (0.2) (1.8)
Lease liabilities 11 (78.6) (79.1)
Derivative financial instruments (0.8) (1.5)
Trade and other payables (357.1) (368.4)
Current tax liabilities (3.2) -
Provisions (15.4) (12.4)
Total current liabilities (455.3) (463.2)
Net current liabilities (56.7) (42.8)
Non-current liabilities
Borrowings (8.8) (19.6)
Lease liabilities (192.8) (228.1)
Derivative financial instruments (3.9) (0.1)
Trade and other payables (3.4) (3.6)
Provisions (10.9) (11.1)
Total non-current liabilities (219.8) (262.5)
Total liabilities (675.1) (725.7)
Net assets 500.3 553.8
Shareholders’ equity
Share capital 2.2 2.2
Share premium 212.4 212.4
Investment in own shares (1.6) (1.0)
Other reserves 0.7 -
Retained earnings 286.4 340.2
Total equity attributable to equity holders of the Company 500.1 553.8
Non-controlling interest 0.2 -
Total equity 500.3 553.8
The notes on pages 20 to 29 form part of these condensed consolidated financial statements.
Halfords Group plc
Consolidated Statement of Changes in Shareholders’ Equity
For the 52 weeks to 28 March 2025
Attributable to the equity holders of the Company
Other reserves
Share Share Investment Capital Hedging Retained Total Non-controlling Total
premium in own redemption shareholders interest equity
capital account shares reserve reserve earnings equity
£m £m £m £m £m £m £m
Closing balance
at 31 March 2.2 212.4 (1.9) 0.3 (1.4) 345.3 556.9 - 556.9
2023
Total
comprehensive
income for the
period
Profit for the - - - - - 16.9 16.9 - 16.9
period
Other
comprehensive
loss
Cash flow
hedges:
Fair value
changes in the - - - - (1.3) - (1.3) - (1.3)
period
Income tax on
other - - - - (0.4) - (0.4) - (0.4)
comprehensive
income
Total other
comprehensive
loss for the - - - - (1.7) - (1.7) - (1.7)
period net of
tax
Total
comprehensive - - - - (1.7) 16.9 15.2 - 15.2
income for the
period
Other
Hedging gains
and losses
transferred to - - - - 2.8 - 2.8 - 2.8
the cost of
inventory
Transactions
with owners
Purchase of own - - (10.2) - - - (10.2) - (10.2)
shares
Share options - - 11.1 - - (6.9) 4.2 - 4.2
exercised
Share-based
payment - - - - - 3.8 3.8 - 3.8
transactions
Income tax on
share-based - - - - - 0.4 0.4 - 0.4
payment
transactions
Sale of
minority
interest in - - - - - 2.4 2.4 - 2.4
subsidiary to
non-controlling
interest
Dividends to - - - - - (21.7) (21.7) - (21.7)
equity holders
Total
transactions - - 0.9 - - (22.0) (21.1) - (21.1)
with owners
Balance at 29 2.2 212.4 (1.0) 0.3 (0.3) 340.2 553.8 - 553.8
March 2024
Halfords Group plc
Consolidated Statement of Changes in Shareholders’ Equity (continued)
For the 52 weeks to 28 March 2025
Attributable to the equity holders of the Company
Other reserves
Share Share Investment Capital Hedging Retained Total
premium in own redemption shareholders Non-controlling Total
capital account shares reserve reserve earnings interest equity
equity
£m £m £m £m £m £m £m
Closing balance
at 29 March 2.2 212.4 (1.0) 0.3 (0.3) 340.2 553.8 - 553.8
2024
Total
comprehensive
loss for the
period
Loss for the - - - - - (33.6) (33.6) (0.2) (33.8)
period
Other
comprehensive
loss
Cash flow
hedges:
Fair value
changes in the - - - - 0.1 - 0.1 - 0.1
period
Income tax on
other - - - - (0.2) - (0.2) - (0.2)
comprehensive
income
Total other
comprehensive
loss for the - - - - (0.1) - (0.1) - (0.1)
period net of
tax
Total
comprehensive - - - - (0.1) (33.6) (33.7) (0.2) (33.9)
loss for the
period
Hedging gains
and losses
transferred to - - - - 0.8 - 0.8 - 0.8
the cost of
inventory
Recognition of
derivative - - - - - (3.9) (3.9) - (3.9)
liability
Transactions
with owners
Purchase of own - - (3.6) - - - (3.6) - (3.6)
shares
Share options - - 3.0 - - (2.4) 0.6 - 0.6
exercised
Share-based
payment - - - - - 3.9 3.9 - 3.9
transactions
Adjustment to - - - - - (0.4) (0.4) 0.4 -
NCI
Dividends to - - - - - (17.4) (17.4) - (17.4)
equity holders
Total
transactions - - (0.6) - - (16.3) (16.9) 0.4 (16.5)
with owners
Balance at 28 2.2 212.4 (1.6) 0.3 0.4 286.4 500.1 0.2 500.3
March 2025
The notes on pages 20 to 29 are an integral part of these condensed consolidated financial statements.
Halfords Group plc
Consolidated Statement of Cash Flows
For the 52 weeks to 28 March 2025
52weeks to 52weeks to
28 March 29 March
2025 2024
Notes £m £m
Cash flows from operating activities
Profit after tax for the period, before non-underlyingitems 30.0 32.8
Non-underlyingitems (63.8) (3.8)
(Loss)/profit after tax for the period (33.8) 29.0
Depreciation – property, plant and equipment 28.8 27.1
Impairment of property, plant and equipment 2.0 -
Amortisationof right-of-use assets 79.5 78.9
Impairment of right-of-use assets 7.9 2.8
Amortisation– intangible assets 22.8 21.2
Impairment of intangible assets 47.9 -
Net finance expense 11.1 13.1
Loss on disposal of property, plant and equipment 0.3 0.8
Gain on disposal of leases 0.2 (2.2)
Equity-settledshare-basedpayment transactions 3.9 3.8
Foreign exchange movement 3.5 1.2
Income tax expense 3.8 9.8
(Increase)/decrease in inventories 8.8 12.7
Decrease/(increase) in trade and other receivables 8.8 (9.0)
(Decrease)/increase in trade and other payables (9.1) 10.7
Increase/(decrease) in provisions 2.8 (10.3)
Income tax received/(paid) 5.5 (11.7)
Net cash from operating activities - continuing operations 194.7 177.9
Net cash from operating activities – discontinued operations - (10.5)
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired - (0.6)
Acquisition of subsidiary, deferred consideration paid (4.0) -
Purchase of intangible assets (21.3) (23.7)
Purchase of property, plant and equipment (31.9) (21.9)
Net cash from investing activities - continuing operations (57.2) (46.2)
Net cash from investing activities – discontinued operations - (0.3)
Cash flows from financing activities
Purchase of own shares (3.6) (10.2)
Proceeds from share options exercised 0.6 4.2
Finance income/(costs) received/(paid) 0.4 (2.1)
RCF drawdowns 568.0 1,348.0
RCF repayments (578.0) (1,363.0)
Proceeds from borrowings - 1.5
Repayments of borrowings (1.4) -
RCF transaction costs (1.3) (1.1)
Capitalised transaction costs (1.4) -
Interest paid on lease liabilities (9.4) (9.0)
Payment of capital element of leases (87.1) (83.8)
Payments related to supplier financing (91.0) (70.0)
Receipts related to supplier financing 89.9 65.9
Proceeds from sale of share in subsidiary to non-controlling Interest - 2.4
Dividends paid (17.4) (21.7)
Net cash used in financing activities - continuing operations (131.7) (138.9)
Net cash used in financing activities – discontinued operations - (0.9)
Net increase/(decrease) in cash and bank overdrafts 10 5.8 (18.9)
Cash and cash equivalents at the beginning of the period 13.3 32.2
Cash and cash equivalents at the end of the period 10 19.1 13.3
The notes on pages 20 to 29 are an integral part of these condensed consolidated financial statements.
Halfords Group plc
Notes to the condensed consolidated financial statements
For the 52 weeks to 28 March 2025
1. General information and basis of preparation
The financial information set out below does not constitute the Group's statutory accounts for the periods
ended 28 March 2025 or 29 March 2024 but is derived from those accounts. Statutory accounts for 2024 have
been delivered to the Registrar of Companies. The auditor has reported on those accounts; their reports
were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention
by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498
(2) or (3) of the Companies Act 2006.
The financial statements are presented in millions of pounds sterling, rounded to the nearest £0.1m.
The accounts of the Group are prepared for the period up to the Friday closest to 31 March each year.
Consequently, the financial statements for the current period cover the 52 weeks to 28 March 2025, whilst
the comparative period covered the 52 weeks to 29 March 2024.
The consolidated financial statements of Halfords Group plc and its subsidiary undertakings, together “the
Group”, have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) and
IFRS Interpretations Committee (“IFRS IC”) Interpretations as adopted by the European Union and with those
parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements are
prepared on a going concern basis and under the historical cost convention, except where adopted IFRSs
require an alternative treatment. The principal variations relate to financial instruments (IFRS 9
“Financial instruments”), acquisition of business combinations (IFRS 3 “Business Combinations”),
share-based payments (IFRS 2 “Share-based payment” and leases (IFRS 16 “Leases”).
Adoption of new and revised standards
The Group has applied the following interpretations and amendments for the first time in these financial
statements:
▪ Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7;
▪ Lease Liability in a Sales and Leaseback – Amendments to IFRS 16
▪ Classification of Liabilities as Current or Non-Current – Amendments to IAS 1;
▪ Non-Current Liabilities with Covenants – Amendments to IAS 1
None of the above amendments to standards are considered to have a material effect on these consolidated
financial statements.
New standards and interpretations not yet adopted
All other standards and related adoptions which have been published but not yet adopted are not expected
to have a material impact on the consolidated results or financial position of the Group. A full listing
will be provided in the statutory accounts. There are a number of standards, amendments to standards,
and interpretations which have been issued by the IASB that are effective in future accounting periods
that the Group has decided not to adopt early. With the exception of IFRS 18, these standards are not
expected to have a material impact on the entity in the current or future reporting periods and on
foreseeable future transactions. The impact of IFRS 18 on the Group is currently being assessed and it is
not yet practicable to quantify the effect of IFRS 18 on these consolidated financial statements, however
there is no impact on presentation for the Group in the current year given the effective date of adoption
is for periods beginning on or after 1 January 2027.
2. Operating expenses
For the periodfor continuing operations 52weeks to 52weeks to
28 March 29 March
2025 2024 – restated*
£m £m
Selling and distribution costs * 604.0 581.9
Administrative expenses, before non-underlying items * 216.3 184.5
Non-underlyingadministrative expenses (See note 4) 68.4 4.3
Administrative expenses 284.7 188.8
Operating expenses 888.7 770.7
*Prior period balance restated between selling and distribution costs and administrative expenses, before
non-underlying items to ensure consistency in presentation within Retail and Autocentres businesses
3. Operating profit
From continuing operations for the period 52weeks to 52weeks to
28 March 29 March
2025 2024 – restated*
£m £m
Operating profit is arrived at after charging/(crediting) the following
expenses/(incomes) as categorised by nature:
Expenses relating to leases of low-value assets, excluding short-term 0.3 0.3
leases of low value assets
Expenses relating to short term leases 6.7 6.4
Loss on disposal of property, plant and equipment, and intangibles 0.3 0.8
Amortisation of intangible assets 22.8 21.2
Amortisation of right-of-use assets 79.5 79.7
Depreciation of:
- owned property, plant and equipment 28.8 27.2
Impairment of:
- owned property, plant and equipment 2.0 0.5
- right-of-use assets 7.9 2.8
- intangibles (goodwill) 47.9 -
Trade receivables impairment / (reversal) 0.2 (0.1)
Staff costs 411.9 387.5
Cost of inventories consumed in cost of sales* 823.7 867.1
*The cost of inventories consumed in cost of sales in the prior period has been restated to include
certain Autocentres balances previously omitted in error
4. Non-underlying items
For the period 52 weeks to 52 weeks to
28 March 29 March
2025 2024
£m £m
Non-underlying operating expenses relating to continuing operations:
Organisational restructure costs (a) 1.5 7.7
Acquisition and investment related fees (b) - 1.0
Closure costs (c) 14.9 (4.4)
Cloud migration costs (d) 2.9 -
Impairment of non-current assets (e) 49.1 -
Non-underlying items before tax relating to continuing operations 68.4 4.3
Tax on non-underlying items (f) (4.6) (0.5)
Non-underlying items after tax relating to continuing operations 63.8 3.8
Non-underlying items after tax relating to discontinued operations (Note 9) - 6.9
Total non-underlying items 63.8 10.7
a. During the period, organisational restructure costs of £1.5m were incurred (2024: £7.7m) linked to the
ongoing warehouse management system replacement programme. Other costs incurred in the prior period
include: dual running costs incurred in relation to the integration of National Tyres financial
systems (2024: £0.5m), professional fees incurred in relation to restructuring the Avayler operation
(2024: £1.1m), restructure of the support centre (2024: £1.9m) and costs relating to a revision to
procurement processes (2024: £1.9m).
b. Acquisition costs of £1.0m in the prior period primarily comprised professional fees and acquisition
costs in relation to the acquisitions of National Tyres and the Lodge Tyre Company.
c. Closure costs of £14.9m represent costs associated with the closure of a number of stores and garages,
following strategic reviews of the profitability of the Group's physical estate in the current and
prior periods, as well as the closure of the Group's wholesale tyre operations:
◦ £12.0m (2024: £nil) of closure costs relate to the decision to exit a number of garage locations
following a full review of the future profitability of the Group’s physical estate in light of
the increased labour cost introduced by the UK Government’s Autumn Budget and with reference to
sites’ suitability for the Fusion programme. A strategic review in FY25 of the garage estate’s
profitability, resulting in the forthcoming closure of several loss-making and underperforming
garages. Right-of-use assets (£6.7m) and tangible assets (£1.9m) were impaired, with provisions
for property exit costs (£3.4m). Communications to employees who will be directly impacted by
these closures are expected to take place in the first half of FY26 when the related redundancy
provision and non-underlying expense will be recognised.
◦ £1.4m (2024: £4.4m credit) of closure costs were incurred in the current period from store and
garage closures initiated during strategic reviews of the Group's physical estate’s profitability
in previous years. Assets were impaired and costs associated with ongoing onerous commitments
under lease agreements and other costs associated with the property exits were provided for.
Costs in the current period primarily relate to revised sublet assumptions and increased
dilapidation fees. At the period end, property provisions carried forward included an amount of
£3.3m (2024: £3.5m) in relation to these closures, which will continue to unwind as property
exits are negotiated with landlords or tenants.
◦ £1.5m of closure costs were incurred in the current period following the FY24 closure of the
Group’s wholesale tyre operations, after entering a strategic partnership with specialist tyre
distributor Bond International. These costs, not eligible for provision in FY24, comprise
non-property related closure expenses, unwinding of discounting on deferred consideration through
FY30, and property related expenditure on leases extending through to FY34. Non-property related
costs have concluded in FY25.
d. Cloud migration costs relate to the migration of servers from co-located datacentres to a cloud-based
solution. Costs of £2.9m (2024: £nil) include expenses associated with managing this transition and
the dual running of the existing co-located servers and the new cloud infrastructure.
e. During FY25, the Group performed an impairment review of certain non-current assets. As a result of
this review, the Group recognised an impairment expense of £47.9m in relation to Goodwill and £1.2m in
relation to Right of Use assets within retail and autocentres segments.
f. The tax credit of £4.6m represents a tax rate of 6.7% applied to non-underlying items, which is lower
than the statutory rate due to the impact of non-deductible expenditure.
5. Finance costs
Recognised in profit or loss for the period 52weeks to 52weeks to
28 March 29 March
2025 2024
£m £m
Finance income:
Bank interest 0.9 -
Finance income:
Bank borrowings (0.5) (2.2)
Amortisation of issue costs on loans (0.6) (0.8)
RCF commitment fees (1.3) (1.1)
Supplier financing expense (0.2) -
Interest payable on lease liabilities (9.4) (9.0)
Net Finance costs before non-underlying items (11.1) (13.1)
6. Taxation
For the period 52weeks to 52weeks to
28 March 29 March
2025 2024
£m £m
Amounts recognised through Income Statement
Current taxation
UK corporation tax charge for the period 6.8 5.6
Adjustment in respect of prior periods (0.6) (5.5)
6.2 0.1
Deferred taxation
Origination and reversal of temporary differences (1.4) 0.9
Adjustment in respect of prior periods (1.0) 4.5
(2.4) 5.4
Total tax charge for the period 3.8 5.5
Income tax attributable to:
Profit from continuing operations 3.8 9.8
Profit from discontinued operations - (4.3)
3.8 5.5
Deferred taxation – OCI
Origination and reversal of temporary differences in Other Comprehensive Income 0.2 0.4
Total tax charge to Other Comprehensive Income for the period 0.2 0.4
Current taxation - equity
UK corporation tax credit for the period - (0.4)
- (0.4)
Total tax (credit)/charge to equity for the period (0.4)
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
For the period 52weeks to 52weeks to
28 March 29 March
2025 2024
£m £m
(Loss) / Profit before tax from continuing operations (30.0) 38.8
Loss before tax from discontinued operations including gain on disposal - (16.4)
(Loss) / Profit before tax (30.0) 22.4
UK Corporation Tax at standard rate of 25% (2024: 25%) (7.5) 5.6
Factors affecting the charge for the period:
Depreciation on expenditure not eligible for tax relief 0.4 0.7
Employee share options 0.6 0.4
Other disallowable expenses 12.3 0.6
Adjustment in respect of prior periods (1.6) (1.1)
Deferred tax not recognised - (0.2)
Impact of overseas tax rates (0.4) (0.5)
Impact of change in tax rate on deferred tax balance - -
Total tax charge for the period 3.8 5.5
An increase to the main rate of corporation tax to 25% was substantively enacted on 24 May 2021 and took
effect from 1 April 2023. The opening and closing deferred tax asset at 28 March 2025 has been calculated
based on the rate of 25%.
The effective tax rate of (12.8)% (2024: 24.6%) is higher than the UK corporation tax rate principally due
to the impact of a non-deductible impairment of goodwill of £47.9m in the period. The taxation charge for
the period was £3.8m (2024: £5.5m), including a £4.6m credit (2024: £0.4m credit) in respect of tax on
non-underlying items.In this period, the Group’s contribution to the UK Exchequer from both taxes paid and
collected exceeded £274m (2024: £273m) with the main taxes including net VAT £141.2m (2024: £126.3m),
employment taxes of £98.1m (2024: £89.0m) and business rates £39.7m (2024: £37.0m), partially offset by
corporation tax refunds of £5.5m (2024: payments of £11.0m).
Impact of future tax changes
Pillar Two legislation, which introduced a global minimum effective tax rate of 15%, has been enacted or
substantively enacted in certain jurisdictions where the Group operates. The legislation will be effective
for the Group’s financial period beginning 30 March 2024. The Group is in scope of the enacted or
substantively enacted legislation and has performed an assessment of the Group’s potential exposure to
Pillar Two income taxes.
The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax
filings, country-by-country reporting and financial statements for the constituent entities in the Group.
Based on the assessment, the Pillar Two effective tax rates in most of the jurisdictions in which the
Group operates are above 15%. However, there are a limited number of jurisdictions where the transitional
safe harbour relief may not apply and the Pillar Two effective tax rate is close to 15%. The Group does
not expect a material exposure to Pillar Two income taxes in those jurisdictions and has applied the
exception to recognising deferred tax assets and liabilities relating to Pillar Two income taxes.
7. Dividends
For the period 52weeks to 52weeks to
28 March 29 March
2025 2024
£m £m
Equity – ordinary shares
Final for the 52 weeks to 29 March 2024 – paid 5.0p per share (52 weeks to 31 10.9 15.2
March 2023: 7.0p)
Interim for the 52 weeks to 28 March 2025 – paid 3.0p per share (52 weeks to 29 6.5 6.5
March 2024: 3.0p)
17.4 21.7
In addition, the directors are proposing a final dividend in respect of the financial period ended 28
March 2025 of 5.8p per share (2024: 5.0p per share), which will absorb an estimated £12.6m (2024: £11.0m)
of shareholders’ funds. It will be paid on 12 September 2025 to shareholders who are on the register of
members on 8 August 2025.
8. Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by
the weighted average number of ordinary shares in issue during the period. The weighted average number of
shares excludes shares held by an Employee Benefit Trust and has been adjusted for the issue/purchase of
shares during the period.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to
assume conversion of all dilutive potential ordinary shares. These represent share options granted to
employees where the exercise price is less than the average market price of the Company’s ordinary shares
during the 52 weeks to 28 March 2025.
The Group has also chosen to present an alternative earnings per share measure, with profit adjusted for
non-underlying items as it better reflects the Group’s underlying performance.
For the period 52 weeks to 52 weeks to
29 March
28 March 2025
2024
Number of shares Number of shares
m m
Weighted average number of shares in issue 218.9 218.9
Less: shares held by the Employee Benefit Trust (weighted average) (1.0) (1.5)
Weighted average number of shares for calculating basic earnings per 217.9 217.4
share
Weighted average number of dilutive shares 9.5 8.5
Total number of shares for calculating diluted earnings per share 227.4 225.9
Potentially dilutive shares in the current year would be anti-dilutive and have therefore not been taken
into account in the calculation of diluted earnings per share.
For the period
52 weeks to 52 weeks to
28 March 2025 29 March 2024
£m £m
Attributable to equity shareholders for the period
(Loss) / earnings from continuing operations (33.6) 29.0
Non-underlying items after tax relating to continuing operations (Note 4) 63.8 3.8
Earnings from continuing operations before non-underlying items 30.2 32.8
Earnings from discontinued operations - (12.1)
Non-underlying items after tax relating to discontinued operations (Note 9) - 6.9
Earnings from discontinued operations before non-underlying items - (5.2)
Total (loss) /earnings (33.6) 16.9
Total non-underlying items after tax 63.8 10.7
Total earnings before non-underlying items 30.2 27.6
52 weeks to
52 weeks to
For the period 29 March
28 March 2025
2024
Basic (loss) / earnings per ordinary share from continuing operations (15.4)p 13.3p
Diluted (loss) /earnings per ordinary share from continuing operations (15.4)p 12.7p
Basic earnings per ordinary share from continuing operations before 13.8p 15.1p
non-underlying items
Diluted earnings per ordinary share from continuing operations before 13.2p 14.5p
non-underlying items
Basic (loss) /earnings per ordinary share (15.4)p 7.8p
Diluted (loss) /earnings per ordinary share (15.4)p 7.4p
Basic earnings per ordinary share before non-underlying items 13.8p 12.7p
Diluted earnings per ordinary share before non-underlying items 13.2p 12.2p
9. Discontinued operations
On 25th January 2024 the Group announced its intention to enter into a strategic partnership with
specialist tyre distributor Bond International and to close its existing tyre operation. As a consequence,
on 22 February 2024, the Group sold Birkenshaw Distributors Limited (“BDL”) and the wholesale customers of
Stepgrades Motor Accessories Ltd (“Viking”) to R & R C Bond (Holdings) Limited ("Bond”). On 22 March 2024,
the remaining principal operations of Viking ceased.
The events noted above resulted in Viking and BDL being treated as a discontinued operation in the prior
period. The results of the business were shown separately from the continuing business for all periods and
presented on the face of the income statement as a discontinued operation. This was also reflected in the
statement of comprehensive income. Earnings per share (EPS) was split between continuing and discontinued
operations. The cash flows of the discontinued operation were also disclosed in the consolidated statement
of cash flows.
The summary income statement for the businesses treated as a discontinued operation for the periods up to
28 March 2025 and 29 March 2024 are as follows:
52 Weeks to 28 March 2025 52 Weeks to 29 March 2024
Before Non-underlying Before Non-underlying
Discontinued operations non-underlying items Total non-underlying items Total
items £m £m items £m £m
£m £m
Revenue - - - 16.3 16.3
Cost of sales - - - (13.6) (13.6)
Gross profit - - - 2.7 - 2.7
Operating expenses - - - (9.7) (11.9) (21.6)
Loss from operating activities - - - (7.0) (11.9) (18.9)
Net finance expense - - - - -
Loss before income tax - - - (7.0) (11.9) (18.9)
Income tax expenses - - - 1.8 2.5 4.3
Loss after tax - - - (5.2) (9.4) (14.6)
Gain on disposal - - - 2.5 2.5
Loss after tax from discontinued - - - (5.2) (6.9) (12.1)
operations
The events noted for Viking and BDL are a major re-organisation of a key line of business. The costs and
gains on disposal of various Viking and BDL assets associated with these events meet the definition of
non-underlying items as per group accounting policy. The breakdown of these are as follows:
For the period 52 weeks to 52 weeks to
28 March 29 March
2025 2024
£m £m
Non-underlying operating expenses:
Organisational restructure costs (a) - 11.9
Gain on disposal of assets (b) - (2.5)
Non-underlying items before tax - 9.4
Tax credit on non-underlying items - (2.5)
Non-underlying items after tax - 6.9
a. In the period ended 29 March 2024, organisational restructuring costs of £11.9m were incurred relating
to the disposals of the share capital of BDL and the wholesale customers of Viking, and the subsequent
closure of the remaining Viking operation. Costs in relation to these activities comprised: redundancy
costs £2.6m, property related restructuring provisions £3.9m, right-of-use and other asset impairment
£4.1m, Viking dual running costs £0.5m and legal fees to support the transaction of £0.8m.
b. In the period ended 29 March 2024, deferred consideration of £2.9m was recognised on the contract date
for the disposal of £0.4m of assets, giving rise to a £2.5m gain on disposal.
There are no other items of comprehensive income relating to discontinued operation for the period ending
28 March 2025 (2024: nil).
10. Analysis of movements in Group’s net debt in the period
At 29 March 2024 Cash flow Other non-cash changes At 28 March 2025
£m £m £m £m
Cash and cash equivalents
13.3 5.8 - 19.1
(Consolidated Statement of Cash
Flows)
Debt due in less than one year (1.8) 1.4 0.2 (0.2)
Debt due after one year (19.6) 11.4 (0.6) (8.8)
Total net (debt) / cash excluding (8.1) 18.6 (0.4) 10.1
leases
Current lease liabilities (79.1) 96.5 (96.0) (78.6)
Non-current lease liabilities (228.1) - 35.3 (192.8)
Total lease (307.2) 96.5 (60.7) (271.4)
Total net debt (315.3) 115.1 (61.1) (261.3)
Other non-cash changes include additions of new leases, modifications to leases, amortisation of debt
costs, foreign exchange movements, and changes in classifications between amounts due within and after 1
year.
Cash and cash equivalents at the period end consist of £19.1m (2024: £13.3m) of liquid assets.
The Group had the following committed borrowing facilities available at each balance sheet date in respect
of which all conditions precedent had been met:
As at
As at
29 March
28 March 2025
2024
Expiring within 1 year - -
Expiring between 1 and 2 years - -
Expiring between 2 and 5 years 180.0 180.0
The committed facility of £180.0m (2024: £180.0m) relates to the Group’s revolving credit facility, of
which £20.0m is designated as an overdraft facility. This facility incurred commitment fees at market
rates.
11. Leases
All leases where the Group is a lessee are accounted for by recognising a right-of-use asset and a lease
liability except for:
• Leases of low value assets; and
• Leases with a term of 12 months or less.
The Group’s leases relate to the store and garage premises from which the Group operates with typical
lease terms of 5-10 years.
i. Amounts recognised in the consolidated statement of financial position
Right-of-Use Assets
Land and
Equipment
buildings Total
£m
£m £m
At 31 March 2023 304.8 7.8 312.6
Additions on acquisition of subsidiary - - -
Additions to right-of-use assets 31.7 11.6 43.3
Amortisation charge for the year (74.0) (5.7) (79.7)
Effect of modification of lease 10.5 - 10.5
Derecognition of right-of-use assets (5.6) - (5.6)
Impairment charge (2.8) - (2.8)
At 29 March 2024 264.6 13.7 278.3
Land and
Equipment
buildings Total
£m
£m £m
At 29 March 2024 264.6 13.7 278.3
Additions to right-of-use assets 37.8 11.9 49.7
Amortisation charge for the year (72.1) (7.4) (79.5)
Effect of modification of lease 4.5 - 4.5
Reclassification of subleased asset to other receivables (0.8) - (0.8)
Derecognition of right-of-use assets (2.0) - (2.0)
Impairment charge (7.9) - (7.9)
At 28 March 2025 224.1 18.2 242.3
The impairment charge of £7.9m (2024: £2.8m) relates to the garage store closure project (£7.0m) and
retail right-of-use asset impairment (£0.9m), both of which are included within non-underlying items.
The derecognition of right of use assets and disposals of lease liabilities relates to ongoing store and
garage closure programmes where leases have been exited before their original exit date.
Modification of leases relates to renegotiations of leases following discussions with landlords.
Lease Liabilities
Land and
Equipment
buildings Total
£m
£m £m
At 31 March 2023 337.5 9.4 346.9
Additions on acquisition of subsidiary - - -
Additions to lease liabilities 31.8 10.5 42.3
Interest expense 8.5 0.5 9.0
Effect of modification to lease 11.1 (0.5) 10.6
Lease payments (87.7) (5.9) (93.6)
Disposals to lease liabilities (7.8) - (7.8)
Foreign exchange movements (0.2) - (0.2)
At 29 March 2024 293.2 14.0 307.2
Additions to lease liabilities 36.9 11.8 48.7
Interest expense 8.3 1.1 9.4
Effect of modification to lease 4.4 - 4.4
Lease payments (88.2) (8.3) (96.5)
Disposals to lease liabilities (1.7) - (1.7)
Foreign exchange movements (0.1) - (0.1)
At 28 March 2025 252.8 18.6 271.4
28 March 29 March
Carrying value of lease liabilities included in the statement of financial position 2025 2024
£m £m
Current liabilities 78.6 79.1
Non-current liabilities 192.8 228.1
Total lease liabilities 271.4 307.2
28 March 29 March
Lease liabilities 2025 2024
£m £m
Maturity analysis – contractual undiscounted cash flows
Less than one year 87.0 87.5
Between one and two years 67.6 78.8
Between two and three years 50.5 56.8
Between three and four years 37.5 40.7
Between four and five years 21.5 27.3
Between five and six years 15.0 16.9
Between six and seven years 12.0 13.7
Between seven and eight years 7.9 10.7
Between eight and nine years 2.1 6.9
Between nine and ten years 1.7 1.2
After ten years 3.2 2.8
Total contractual cash flows 306.0 343.4
28 March 29 March
Finance sub-lease receivable 2025 2024
£m £m
< 1 year 0.3 -
1-2 years 0.2 -
2-5 years 0.3 -
6-10 years - -
Total undiscounted lease payments receivable 0.8 -
Unearned finance income (0.1) -
Net investment in the lease 0.7 -
ii. Amounts recognised in the consolidated income statement
Land and
Equipment
buildings Total
£m
£m £m
52 weeks ended 28 March 2025
Amortisation charge on right-of-use assets 72.1 7.4 79.5
Interest on lease liabilities 8.3 1.1 9.4
Expenses relating to short-term leases 5.4 1.3 6.7
Expenses relating to leases of low-value assets, excluding short-term - 0.3 0.3
leases of low-value assets
52 weeks ended 29 March 2024
Amortisation charge on right-of-use assets 74.0 5.7 79.7
Interest on lease liabilities 8.5 0.5 9.0
Expenses relating to short-term leases 5.1 1.3 6.4
Expenses relating to leases of low-value assets, excluding short-term - 0.3 0.3
leases of low-value assets
iii. Amounts recognised in the consolidated statement of cash flows
The total cash outflow for leases for the period ended 28 March 2025 was £96.5m (2024: £93.6m).
══════════════════════════════════════════════════════════════════════════════════════════════════════════
13 1 Outlook commentary is based on a comparable 52-week year; FY26 will include a 53rd week of trading.
14 2 Underlying Autocentres EBIT ex-Avayler, which was separated to operate as a standalone business
distinct from the Halfords group in FY24.
15 3 As noted in our interim results, some significant changes to the competitor sets participating in
market data panels have occurred, reducing their usefulness as a measure of changes to market share. As
such, we will no longer regularly report detailed market share data although we will continue to give
directional commentary where appropriate.
16 4 Outlook commentary is based on a comparable 52-week year; FY26 will include a 53rd week of
trading.
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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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ISIN: GB00B012TP20
Category Code: FR
TIDM: HFD
LEI Code: 54930086FKBWWJIOBI79
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 393809
EQS News ID: 2160032
End of Announcement EQS News Service
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