Halfords backs FY expectations after 'strong' H1

(Sharecast News) - Halfords said on Thursday that it was on track to deliver FY26 expectations following a "strong" first half, as it pointed to a solid performance from cycling. In the 26 weeks to 26 September, underlying pre-tax profit ticked up 1% to £21.2m, on revenue of £893.3m, up 3.3% on the same period a year earlier.

Halfords said the higher profit was delivered despite significant inflation in the period, including increases in the National Living Wage and changes to National Insurance rates and thresholds in last year's Budget.

Group sales rose 4.1% on a like-for-like basis, with a "strong" performance in cycling - which saw LFL sales jump 9% - and growth in both segments, with retail LFL sales up 4% and Autocentres 4.3% higher.

Halfords said it remains confident in delivering FY26 underlying pre-tax profit in-line with consensus expectations of between £36m and £40.7m.

It also still expects capital expenditure for the full year to be within the guided range of £60m to £70m.

Chief executive Henry Birch said: "I am very pleased to be announcing a strong set of HY26 results that show good financial, strategic and operational progress. Cycling was the stand-out performer, with LFL sales up 9%. Our consumer garages also performed particularly well, up around 8%, driven in part by the ongoing roll-out of our new format Fusion garages.

"Looking ahead, there are significant opportunities for us to create further value through improvements in our technology and data capability, which are key areas of focus for us as we plan for the future.

"While the operating environment remains unpredictable, our combination of needs-based products and services, as well as market leading positions in both motoring and cycling, give us the confidence that we will continue to grow our business in line with our plans."

The company also announced the appointment of Sarah Haywood, former global CIO of Carlsberg, as chief information officer with effect from November.

In addition, it said that after nine years as chair, Keith Williams plans to step down by the company's next annual general meeting in September 2026.