Halfords Share Price Crashed 22.2% on Restated H1 2023 Results

The Halfords Group plc (LON: HFD) share price crashed 22.2% as of 10:00 GMT after releasing the interim results for the first half of its financial year and restating some of the figures from last year. Investors reacted negatively to news that the company was slashing its profit before tax for the previous year by £10.6 million from £29.3 million to £18.7 million.

The UK’s leading provider of Motoring and Cycling services and products restated its H1 fiscal year 2023 results due to adjustments relating to FX accounting and the Cost of Goods Sold. Investors were also disappointed by the lowered fiscal year 2024 underlying profit margin to between £48 million and £53 million. 

Still, despite a challenging macroeconomic landscape, the company reported robust revenue growth of 13.9% from £767.1 million in H1 fiscal 2023 to £873.5 million in H1 fiscal 2024. Notably, like-for-like (LFL) sales have shown remarkable growth at 8.3%, surpassing expectations.

The company was delighted to report market share gains across all categories, meeting or exceeding its projections. Performance across its underlying markets varied, with its needs-based categories, such as retail motoring and motoring services, witnessing robust growth that aligns with its expectations.

However, discretionary markets like Cycling have proven to be more challenging, falling below our anticipated levels due to well-documented consumer dynamics. The company’s Business-to-Business (B2B) segment continues to exhibit robust growth, surpassing 37% and contributing to nearly one-third of our Group's total revenue.

Graham Stapleton, Chief Executive Officer: “Despite the challenging and volatile trading environment and slower than expected recovery in some of our markets, we have made a good start to the year, with substantial sales and profit growth and increased market share across the business. At the same time, we supported our customers through the ongoing cost of living crisis by delivering great value  – when they need it most. In the face of continuing economic uncertainty, we remain fully focused on optimising every element of the business, and I’m particularly pleased with the very strong performance of Autocentres, where we are delivering significantly improved returns.”

The CEO also clarified that the company was accelerating capital investment in its garage services operating model and boosting its customer experience in ten towns within the remaining portion of its financial year. 

Halfords share price. 

The Halfords share price plunged 22.17% to trade at 177.45p, from Tuesday’s closing price of 228.00p.