Halfords Group (LSE:HFD) has upgraded its full-year profit guidance following strong recent trading, with underlying business momentum and exceptional demand across seasonal categories supporting an improved outlook for FY27.
The UK motoring and cycling products and services group said unusually warm summer weather provided an additional boost to seasonal sales, complementing solid underlying performance across the business.
As a result, Halfords now expects FY27 underlying profit before tax of between £55 million and £65 million, putting its updated guidance above prevailing market consensus.
The group expects earnings for the year to be more heavily weighted towards the first half. Halfords plans to increase investment in technology and marketing during the second half as it continues to strengthen its customer proposition and support longer-term growth.
The guidance upgrade provides further evidence of positive trading momentum across the group’s extensive retail and services network, which combines physical stores, garages, fleet locations and mobile servicing with established digital channels.
Halfords is also continuing to diversify its operations through Avayler, its proprietary software-as-a-service business. The platform, which was originally developed to support Halfords’ own operations, is now marketed to external customers in the US and Australia, providing the group with exposure to international technology-led revenues alongside its core UK activities.
With stronger-than-expected summer trading and continued investment planned across its technology and marketing capabilities, Halfords enters the remainder of FY27 with increased confidence in its earnings outlook and strategic positioning.
More about Halfords
Halfords Group is a leading UK provider of motoring and cycling products and services, operating 370 Halfords stores, two Performance Cycling outlets under the Tredz brand, 496 consumer garages and 92 commercial fleet locations.
Its nationwide network also includes approximately 250 mobile service vans and 550 commercial vans, providing customers with access to automotive maintenance and related services across multiple channels.
The group’s physical operations are complemented by ecommerce and online booking platforms, including halfords.com and tredz.co.uk, allowing customers to arrange home delivery, in-store collection and garage services.
Through Avayler, Halfords also provides its proprietary SaaS technology to customers in the US and Australia, extending the group’s technology capabilities beyond its core UK retail and automotive services operations.
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