What was Halfords' profit in the first half of 2025?

Halfords reported an underlying profit before tax of £21.2m for the first 26 weeks of 2025.

Which division performed best for Halfords in H1 2025?

The cycling division was the standout performer, with sales increasing by 8.8%.

How is Halfords planning to expand its garage network?

Halfords is rolling out its Fusion garage concept and aims to reach 150 sites by FY27.

Home / Business and Economy / Halfords Cycles to Profit Growth Amidst Retail Recovery

Halfords Cycles to Profit Growth Amidst Retail Recovery

29 Nov

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Summary

First-half profit increased 1% to £21.2m despite higher operating costs.
Cycling sales surged 8.8% due to market recovery and warm weather.
Gross margin improved by 200 basis points, aided by a cost-efficiency program.

Halfords Cycles to Profit Growth Amidst Retail Recovery

Halfords announced a modest increase in its first-half 2025 profit before tax, which rose by 1% to £21.2 million compared to the previous year. This uplift was significantly driven by an 8.8% surge in cycling sales, benefiting from market recovery and favorable summer weather. The company also saw a 3.3% rise in overall group revenue, achieving like-for-like growth of 4.1%.

Improved gross margins of 51.4% played a crucial role in offsetting increased operating expenses, which were impacted by inflation. Halfords' 'Better Buying' cost-efficiency program was a key factor in this margin improvement. The business also reported strong free cash generation of £27.6 million and ended the period with a healthy net cash position of £18.6 million.

Looking ahead, Halfords is advancing its 'Optimise, Evolve, Scale' strategy, focusing on efficiency, technology, and network expansion, including its Fusion garage concept aiming for 150 sites by FY27. The company reaffirmed its full-year profit guidance and capital expenditure plans.