Halfords says its Autocentres operation has been a major contributor to strong financial performance, including through the rollout of an integrated garage model.
In its most recent preliminary financial results, for the period ending April 3, 2026, Halfords quotes a 5.8% year-on-year growth in like-for-like sales from its Autocentres garage business, compared with 4.1% for its retail shops.
The group partly credits this to the rollout of its Fusion model, which links retail shops and garages within a town with the aim of optimising capacity and improving customer experience.
Ensure you always get AM insight. Make us a preferred source of news on Google.
In its published results, Halfords states: “These financial outcomes in part reflect the continued rollout of our Fusion model, which has now reached 103 locations and continues to deliver the strong returns we saw in earlier phases of the programme, with contribution doubling on average once a site reaches maturity.
“Through a phased rollout, we have been able to take our learnings and iterate our approach to continue to achieve positive results as the programme has scaled.”
Halfords is planning to introduce around 35 more Fusion sites this year, and says it plans to implement the “strongest elements” of the model more broadly across its estate in future years, which it expects to generate attractive returns at a lower cost per garage.
Growing SMR demand drives profits
Halfords has seen more than 0.5% growth in operating margin from its Autocentres business, and says its consumer garages business has seen particularly strong growth, which it credits to increased SMR demand. It says this has more than compensated for ongoing weakness in the tyre market.
The company adds that it has invested in equipment to allow faster growth in “margin-rich” service add-ons such as wheel alignment. This equipment is currently in around 50 garages, a number which is planned to double in the current financial year.
Halfords also says it has acted to improve utilisation, with a year-on-year reduction in labour cost as a percentage of sales despite wage inflation and National Insurance increases.
The company has also highlighted its investment in apprentices, something it plans to accelerate, intending to go from taking on 167 new apprentices in financial year 2026 to 250 in financial year 2027.
Further growth has also been announced in the Halfords Motoring Club loyalty programme, with the level of Premium membership reaching 420,000 members, generating around £22 million in annual subscription revenue.
Halfords sees overall profits increase
Overall, the Halfords group has seen gross profit margin expand to 52.8%, its highest level in a decade, which it says “more than compensated for” an anticipated increase in costs due to inflation and planned investments.
The group’s 52-week underlying profit before tax increased by 4.1% year-on-year to £45.4 million (this is said to include a change in accounting treatment, without which PBT grew by more than 8%).
Halfords added that actions it took in the last financial year, along with some market recovery, had created “significant momentum” in the business, with strong trading in April, May and June.
Commenting with the release of the results, Henry Birch, chief executive at Halfords, said: “I am very pleased with the progress we are making in the ‘Optimise’ phase of our strategy, resulting in the strong results we are announcing today.
“With good sales growth, higher margins and an increased dividend, we are delivering improved shareholder returns alongside a more compelling customer proposition.
“These are early days in our growth strategy and there is much still to do as we seek to leverage Halfords’ clear strengths: leading market positions, an unmatched physical and digital presence in motoring and cycling, a trusted brand, and a unique services proposition made possible by more than 12,000 expert colleagues.”