Slide 1: Halfords Group plc: FY25 Preliminary Results
Halfords Group plc: FY25 Preliminary Results 25 June 2025
Slide 2: Agenda
Agenda 1. Introduction 2. FY25 performance 3. Strategic highlights 4. Current trading and outlook 5. Q&A 2
Slide 3: Introduction
Introduction Introductionand strategic higlights
Slide 4: Henry Birch, CEO: initial reflections
Henry Birch, CEO: initial reflections ✓ Unique combination of assets ✓ Unmatched convenience of on-demand services ✓ Specialism in sales and services ✓ Rich data opportunity for growth and efficiency ✓ Committed colleagues and customer-focus ✓ Revenue synergy potential throughout the group ✓ Strong
Slide 5: FY25 performance
FY25 performance
Slide 6: Basis of financial information
Basis of financial information FY25 covers the 52-week period from 30 March 2024 to 28 March 2025. Unless otherwise stated: • Numbers are post-IFRS 16 • Prior year income statement numbers are based on total operations (i.e. including the discontinued tyre and wholesale operations of Viking and BDL)
Slide 7: FY25: underlying profit growth, gross margin expansion, cost control, and strong cash management
FY25: underlying profit growth, gross margin expansion, cost control, and strong working capital and cash management Operating cost LfL sales: Gross margin: % of sales: +2.5% YoY 50.7% (FY24: +5.0% YoY) (+250bps YoY) 47.8% (+230bps YoY) Underlying PBT: £38.4m Free cashflow: Net cash*: (+£2.3m YoY) £
Slide 8: Cost savings and smart pricing offset inflation and investment in colleagues
Cost savings and smart pricing offset inflation and investment in colleagues to deliver underlying profit growth Group underlying PBT YoY 14.0 (1.0) 21.0 38.4 36.1 (18.0) 21.0 Total cost & efficiency = £35m (33.0) (1.0) Net inflation Price Optimisation Cost savings Investment / & efficiency incentiv
Slide 9: Strong results from Better Buying and other cost efficiencies more than offset inflation
Strong results from Better Buying and other cost efficiencies more than offset inflation Inflation: £33m Cost savings: £35m +£21m +£21m labour costs Better Buying +£3m +£4m freight costs tyres restructuring +£3m +£2m Business Rates interest savings +£6m +£8m other inflation other savings 9
Slide 10: Group gross margin reached 50.7%, the highest since FY22
Group gross margin reached 50.7%, the highest since FY22 with gains across both Retail and Autocentres Group gross margin YoY Better Buying 0.1% 0.3% 50.7% 0.9% (0.2%) 1.4% Price optimisation 48.2% Mix into higher margin categories (e.g. SMR) Favourable hedged FX rate Better Mix / Freight Freight he
Slide 11: Underlying profit grew 6.4% YoY despite £33m of inflation
Underlying profit grew 6.4% YoY despite £33m of inflation and reinstatement of performance-related incentives ✓ LfL sales +2.5% (FY24: +5.0%) with stronger FY25 FY24 Change vs. trading in H2 FY24 0.1% YoY Revenue £1,715.2m £1,712.8m 2.5% LfL ✓ Gross margin +250bps: Better Buying, pricing strategy, s
Slide 12: The largest non-underlying item is a non-cash goodwill impairment
The largest non-underlying item is a non-cash goodwill impairment materially driven by rising UK gilt yields Non- Total £m Cash £m Details Cash £m Predominantly non-cash costs associated with the closure of a small number of garages as we optimise our estate and progress the Closure costs (14.9) (1.
Slide 13: Segmental performance
Segmental performance 13
Slide 14: In Retail, strong underlying performance was offset by reinstatement of incentives
In Retail, strong underlying performance was offset by reinstatement of performance-related incentives for colleagues Retail EBIT YoY 16.4 Change vs. FY25 FY24 FY24 0.8% YoY (11.4) Revenue £1,004.9m £997.1m 8.8 2.1% LfL 41.1 39.0 0.6% YoY (11.4) - Motoring £648.6m £644.6m (4.5) 2.3% LfL 1.1% YoY - C
Slide 15: In Autocentres, gross margin expansion drove a 21% increase in underlying EBIT
In Autocentres, gross margin expansion driven by smarter pricing and mix into SMR drove a 21% increase in underlying EBIT Autocentres EBIT YoY Autocentres Change vs. FY25 FY24 exc. Avayler FY24 5.0 (0.8%) YoY Revenue £707.6m £713.4m 3.7% LfL 12.0 Gross margin 52.5% 49.3% 320bps (%) 4.4 Operating £16
Slide 16: A strong performance in SMR offset a tyres market where customers delay replacement
A strong performance in SMR offset a tyres market where customers continued to delay replacement despite safety risks Number of Halfords SMR jobs Share of tyre jobs where at least one (rolling 12 months) tyre has <2mm tread 18% 16% 14% 12% 10% 8% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY
Slide 17: Cash and balance sheet
Cash and balance sheet 17
Slide 18: Net cash of £10.1m reflects £18.2m improvement year on year
Net cash of £10.1m reflects £18.2m improvement year on year, driven by strong working capital management and reduced stock Group Net Debt ▪ Closing net cash of £10.1m, 16.2 +£18.2m YoY 168.9 ▪ Stock down c.5% YoY with reduction in both segments (52.7) ▪ Cash capex of £52.7m, +£9m YoY largely due to
Slide 19: Capital allocation priorities unchanged with a 10% increase in the total dividend
Capital allocation priorities are unchanged with a 10% increase in the total dividend, 1.5x covered by profit after tax Capital Allocation Priorities Dividend per share 10 9 Maintaining a prudent 5.8 balance sheet 8 5 7 Pence per share 6 Investment for growth 5 4 3 M&A focused on 2 3 3 Autocentres 1
Slide 20: Summary
Summary 20
Slide 21: In FY25 we delivered on three key priorities
In FY25 we delivered on three key priorities… ✓ Optimised the unique platform we have created to deliver greater returns ✓ Mitigated headwinds by driving cost and efficiency ✓ Selectively prioritised existing and proven strategic initiatives …and grew PBT despite external challenges. 21
Slide 22: Resulting in a strong financial performance and a solid base for the year ahead
…resulting in a strong financial performance and a solid base for the year ahead ✓ Underlying PBT up 6.4% YoY to £38.4m ✓ 250bps of gross margin expansion across Retail and Autocentres ✓ £35m of cost and efficiency savings ✓ £43.0m of cash generated through excellent working capital management ✓ Bal
Slide 23: Strategic update
Strategic update
Slide 24: Fusion leverages our differentiated assets to unlock profitable growth
Fusion leverages our differentiated assets to unlock profitable growth ✓ Halfords has a unique value proposition enabled by physical infrastructure, technology and data – with our retail business a critical differentiator that is very difficult to replicate ✓ Fusion amplifies these key points of dif
Slide 25: Fusion is not just about increasing capacity
Fusion is not just about increasing capacity BEFORE Managing the business Updated Halfords Centre Manager branding Managing Managing the Creating customers workshop demand AFTER Assistant Manager Workshop Controller Automotive Service Manager Customer Service Advisor (CSA) Technicians x8 Front of ho
Slide 26: With 50 sites now trading, the results continue to be compelling
With 50 sites now trading, the results continue to be compelling As we progress with the rollout, Fusion garages continue to: ✓ Pay back c.£200k initial investment in c.2 years ✓ Double site-level contribution at maturity ✓ Drive mix into higher margin Service, Maintenance and Repair (“SMR”) ✓ Provi
Slide 27: The data collected by Halfords Motoring Club represents a significant opportunity
The data collected by Halfords Motoring Club represents a significant opportunity for future growth >5m 370k members premium members ✓ Free membership attracts customers to stores and garages, reducing acquisition costs £18m 51% MOTs from club and providing an introduction to the club subscription r
Slide 28: Adam Pay, Garages MD; Jessica Frame, Retail MD
Adam Pay, Garages MD Jessica Frame, Retail MD 28
Slide 29: Current trading and outlook
Current trading and outlook
Slide 30: FY26 current trading and outlook
FY26 current trading and outlook ▪ Trading in line with expectations in FY26 to date ▪ Non-recurring costs in H1 associated with new warehouse management system ▪ Over £20m of cost savings identified to mitigate inflation ▪ Investing for the future, prioritising Fusion, digital customer experience a
Slide 31: Q&A
Q&A
Slide 32: Thank you.
Thank you. For further information, please visit www.halfordscompany.com or contact investor.relations@halfords.co.uk Halfords Group Plc Icknield Street Drive Washford West Redditch Worcestershire B98 0DE