Halfords Group (HFD) investor relations material

Executive summary

• Outlined a five-year phased strategy (Optimise, Evolve, Scale) focused on optimizing, evolving, and scaling the business, leveraging unique assets and market positions.

• Strategic pivot toward a service-led, B2B-diversified model, with over half of revenue now from services and up to a third from B2B.

• Strong, debt-free balance sheet and robust cash flow support disciplined investment and growth.

• Leadership team refreshed with experienced hires to drive operational excellence, simplification, and cultural change.

• Leading provider with c.20m customers, c.6m Motoring Club members, 370 retail stores, 498 garages, and 800+ service vans.

Financial highlights

• Delivered strong interim results for the 26 weeks to 26 September, with positive like-for-like sales growth and margin improvement.

• Annual revenue of £1.7bn, underlying PBT of £38.4m, and Net Promoter Score of 67.5.

• Achieved £90m in cost savings over three years, offsetting £98m in cost inflation.

• Service-related sales now exceed 50% of total, with B2B at up to 30% and recurring revenues.

• Motoring Club premium membership generated £20m in annual recurring revenue.

Outlook and guidance

• Targeting continued like-for-like sales growth, digital outpacing physical, and operating margin expansion.

• ROCE expected to grow above cost of capital, with incremental, returns-accretive investment following PBT progression.

• CapEx guidance maintained at £55m–£65m per annum, with incremental investment only after demonstrating progress.

• Leverage capped at 0.8x adjusted EBITDA (excluding leases); dividend policy unchanged, prioritizing balance sheet strength and progressive dividends.