Halfords is expected to hit the top end of its pre-tax profit range following strong trading and further gross margin expansion.
The motoring and cycling specialist delivered a 4.8% increase in group like-for-likes during the year to April 3, driven by a 4.1% uplift in its retail business and 5.8% growth in autocentres.
As a result, the retailer reported its underlying pre-tax profit was expected to be at the upper end of its £36m to £41.2m consensus range.
Looking ahead, Halfords said that trading through March and April had been in line with expectations despite uncertainty around the conflict in the Middle East.
It noted that the majority of its energy costs for the current financial year are hedged with freight rates largely contracted in advance.
The retailer expects to deliver an underlying pre-tax profit in the range of £42m to £48.6m.
Halfords chief executive Henry Birch said: “I am pleased to see the positive results that are starting to materialise from the ‘optimise’ phase of our ‘Fit for the Future’ strategy as we focus on driving operational excellence and strengthening our foundations for future growth.
“This momentum further underlines the significant potential that exists within the Halfords business, and I look forward to sharing more details on our progress at our full-year results announcement in June.
“In the meantime, I want to thank the 12,500 trusted experts in our stores and garages who have played a critical role in delivering this performance.
“They are the heart of this business and will continue to make Halfords the nation’s first choice for motoring and cycling, providing our customers with the helpful advice and service that keeps them moving day after day.”
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