REG-Halfords Group PLC Halfords Group PLC: Trading Update: Upgrade to FY25 profit expectation

HalfordsAnnouncement

28/01/2025 07:15

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   Halfords Group PLC (HFD)
   Halfords Group PLC: Trading Update: Upgrade to FY25 profit expectation

   28-Jan-2025 / 07:00 GMT/BST

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   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF  ARTICLE
   7 OF  THE  MARKET ABUSE  REGULATION  (EU)  596/2014 WHICH  FORMS  PART  OF
   DOMESTIC UK LAW PURSUANT  TO  THE  EUROPEAN UNION  (WITHDRAWAL)  ACT  2018
   ("UK MAR"). UPON THE  PUBLICATION OF  THIS ANNOUNCEMENT  VIA A  REGULATORY
   INFORMATION SERVICE, THIS INSIDE INFORMATION  WILL BE CONSIDERED TO BE  IN
   THE PUBLIC DOMAIN.

    

   28 January 2025

                               Halfords Group plc

    Upgrade to FY25 profit expectation based on recent trading and continued
                               strategic progress

   Recent Trading

     • Like-for-like (‘LfL’) sales growth  was positive in  Q3 (H1: flat)  in
       both Retail and Autocentres.

          ◦ Retail traded well over the peak trading period as our product
            and promotional proposition resonated well with customers,
            notably in Cycling, where Christmas gifting contributed to LfL
            sales growth of 13.1% in December.
          ◦ Autocentres saw strong performance in the more profitable and
            strategically important Services, Maintenance and Repair (‘SMR’)
            market. LfL SMR sales growth in consumer garages reached 10.3% in
            Q3, supported by our Fusion Motoring Services rollout and
            offsetting continued weakness in the consumer tyres market.

     • Current trading has benefitted from the colder weather in more  recent
       weeks with Motoring Product delivering LfL sales growth in January  of
       5.5%.
     • Hedged FX  rate in  cost of  goods  sold expected  to be  better  than
       previously anticipated in FY25.
     • Freight headwind  now expected  below  the previously  guided  £4m-£7m
       range.
     • Costs continue  to be  well-managed and  on-track to  exceed the  £30m
       full-year target previously indicated.

   FY25 Outlook

   In the interim results announcement published in November we noted ongoing
   market volatility through  the first half  of FY25 and  indicated that  we
   expected this to continue through the  second half of the year. In  recent
   months we have seen an improvement in trading alongside continued progress
   on a  number  of key  initiatives,  including our  pricing  and  promotion
   strategies and cost reduction  measures. Cumulatively, these factors  lead
   us to expect FY25 underlying profit before tax of £32m to £37m.

   FY26 and Beyond

   Despite  the  recent  positive  performance,  there  remains  considerable
   uncertainty regarding the outlook for the UK consumer in light of measures
   introduced by the Autumn  Budget, which take effect  from April and  hence
   are in force for the entirety of FY26. While the impact of changes to  the
   minimum wage and national insurance  contributions are relatively easy  to
   quantify, adding  c.£23m to  our  direct labour  costs  in FY26  alone  as
   announced in November, their effects on the demand environment and  health
   of the broader economy are harder  to predict. We also continue to  expect
   to see inflation passed through on  managed services. We continue to  work
   on possible mitigations for  the additional costs we  face and will  share
   our plans alongside our FY25 results.

   Next Update

   Our next update will be an FY25 trading statement in April.

   For further information:

   Investors:

   Holly   Cassell,   Director   of   Investor   Relations   &   ESG         
    1 investor.relations@halfords.co.uk

   Media:

   Rob   Greening   /    Steve   Marinker   /    Jane   Glover,   Sodali    &
   Co.     2 halfords@sodali.com 

    

   The person responsible  for releasing this  announcement is Tim  O’Gorman,
   Company Secretary.

    

   Notes to Editors

    3 www.halfords.com                              4 www.avayler.com        
    5 www.tredz.co.uk       6 www.halfordscompany.com                     

   Halfords is the UK’s leading provider of motoring and cycling services and
   products. Customers shop  at 377  Halfords stores,  2 Performance  Cycling
   stores (trading as Tredz), 636 consumer and commercial garages (trading as
   Halfords Autocentres,  McConechy’s, Universal,  National Tyres  and  Lodge
   Tyre) and have  access to  268 mobile  service vans  (trading as  Halfords
   Mobile Expert and National)  and 502 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  service  (“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.

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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00B012TP20
   Category Code:  TST
   TIDM:           HFD
   LEI Code:       54930086FKBWWJIOBI79
   OAM Categories: 2.2. Inside information
   Sequence No.:   373057
   EQS News ID:    2075693


    
   End of Announcement EQS News Service

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References

   Visible links
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   2. mailto:halfords@sodali.com
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