Autocentres Drive Halfords’ Revenues Up, Despite Overall Profit Drop

  • Full-year profits of Halfords Group fell by 38.3% to £51.5m in FY23 despite a revenue growth of 15.3% to £1.5bn
  • Autocentres revenues reached £614m, growing 15.4% compared to FY22 and now represent 38% of group revenues
  • Like-for-like growth was 2.4% compared to FY22 with all segments showing positive results despite declines in Cycling and Consumer Tyres markets
  • Investment in competitive pricing and Motoring Loyalty Club helped support customers during the cost-of-living crisis
  • Over three quarters of revenue now come from motoring, with almost half from service-related sales
  • CEO Graham Stapleton is confident about continued momentum despite uncertain consumer backdrop

Halford’s Group has reported a decline in full-year profits of 38.3% to £51.5m for FY23 despite a revenue growth of 15.3% to £1.5bn. Autocentres revenues reached £614m, growing 15.4% compared to FY22 and now represent 38% of group revenues. Despite the profit hit, the company experienced a like-for-like growth of 2.4% compared to FY22 with all segments showing positive results despite significant declines in Cycling and Consumer Tyres markets. The group managed this performance amidst year-on-year cost and market headwinds, investment in price to support customers, and continued investment in the company’s transformation. Halfords also launched the UK’s first dedicated Motoring Loyalty Club with over 1.5m members at year end. For FY23, the group expects year-on-year profit growth with a current analyst consensus of £53.3m underlying profit before taxes. CEO Graham Stapleton said, ‘In a very challenging year, our focus has been on supporting both customers and colleagues through the cost-of-living crisis. Investment in competitive pricing and the value for money offered by our Motoring Loyalty Club has enabled us to help more people with their motoring needs.’ He added, ‘Over the year we have also made great progress against our strategy, building a bigger needs-based services business, with over three quarters of our revenue now coming from motoring, and almost half from service-related sales. These results have been achieved despite significant inflation and other macroeconomic headwinds and are therefore a clear illustration of the ever-increasing resilience of our business.’ Despite an uncertain consumer backdrop, Stapleton remains confident about continued momentum as they develop an even more differentiated proposition.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Halford’s Group financial performance, including specific numbers and percentages for revenue growth, profit decline, and market trends. It also includes quotes from the CEO that support the company’s strategy and outlook for future growth.
Noise Level: 2
Noise Justification: The article provides relevant information about Halford’s Group financial performance and its strategies to cope with inflation and market challenges. It includes specific numbers and quotes from the CEO, offering insights into the company’s resilience and future plans.
Financial Relevance: Yes
Financial Markets Impacted: Halford’s Group profits and stock price
Financial Rating Justification: The article discusses Halford’s Group financial performance, including profit decline and revenue growth, which can impact the company’s stock price and potentially affect investors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of any extreme event in the text.

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