// Halfords profits plummeted £38.3m against last year
// Sales grew 15% over the year but rising costs hit its bottom line
Halfords full-year profits dropped 43% despite sales rising as soaring costs hit the business.
Underlying pre-tax profit fell £38.3m to £51.5m in its year to 31 March, as its costs soared, largely due to inflation. The motoring and cycling business was hit by an additional £95m of costs over the year.
Despite the profits drop, Halfords expects a small growth in earnings in its current year, where it said trading had been “good” despite the bad spring weather.
Halfords chief executive 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. This has led to an outstanding sales performance and significant market share gains.”
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Over the last year, revenue jumped 15% over the year, or 2.4% on a like-for-like basis, with market share growth across motoring, tyres, servicing and cycles.
Against pre-Covid levels, sales are up 40%, or 13% on a like-for-like basis.
Halfords retail sales slumped 22% on last year, although against pre-Covid, revenue was up 29%.
Almost half (48%) of the group’s revenue is now service-related, which includes MOT services and car and bike repairs, with sales at its Autocentres skyrocketing 233% year on year.
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