What we do
Underpinned by disciplined capital allocation
1. Maintain a prudent balance sheet with a leverage ratio excluding lease debt not exceeding 0.8x.
2. Invest for growth with a focus on generating returns above the cost of capital.
3. Pay a dividend 1.5x to 2.5x covered by underlying profit after tax.
4. M&A in priority areas in the Scale phase.
5. Surplus cash returned to shareholders.
What makes us different
Omnichannel capability
We operate an effective omnichannel model, with a nationwide physical estate and a rapidly developing digital platform. This combination gives customers seamless access to products and services online and in store, with click and collect a popular fulfilment option for purchases made online.
Service advantage
While product is a core part of our offer, our true differentiation lies in the services we provide across all touchpoints. Beyond our garages and mobile operations, more than 80% of service events are delivered in our retail car parks, giving customers convenient access to expert support that is difficult to replicate elsewhere.
People powered
At the core of our purpose, we are trusted experts who love to help. Our skilled, friendly colleagues power our services proposition in all areas of the business and keep our customers coming back year after year – whether fixing their car in their hour of need or advising on the right bike for their child’s birthday present.
Built to endure
Our diversified revenues, scaled physical footprint, vast data assets and powerful brand mean Halfords is here for the long haul, set to capitalise on structural market growth trends and with the agile business model and financial resilience needed to win in the future.
An integrated customer journey
1.
A customer visits their local retail store to purchase a new set of wiper blades. They decide to have these fitted while they wait.
2.
The customer is advised that with Premium Motoring Club they will receive a discount on their purchase and can also take advantage of a free vehicle check at the same time as their blades are fitted. Their Premium Motoring Club membership fee includes the cost of their upcoming MOT at a local Halfords garage. This seems like great value, so they sign up.
3.
The store’s Automotive Services Manager fits the customer’s new blades and performs the free check, which identifies that two of their tyres are close to the legal tread depth limit. They offer to book the customer into the local garage the next day to have the tyres replaced.
4.
The garage receives the booking and can see that the customer is a Premium Motoring Club member referred from the store. They place an order for the correct tyres to be delivered the following morning.
5.
The customer arrives at the garage with their vehicle and has their tyres replaced proactively, without having failed their MOT. Colleagues in the garage advise that wheel alignment will prolong the life of their new tyres and recommend other services the customer might wish to consider supported by photo evidence from their inspection.
6.
The customer leaves, happy with the service and advice they have received. They leave a five-star Google review based on their experience and will return to Halfords for their MOT, having been reminded by email when this is due.
Creating value for multiple stakeholders in FY26
Customers
4.5*
lifetime average Google score for our Autocentres
Colleagues
>18,500
training days administered
Shareholders
£45.4m
of 52-week underlying profit before tax
Suppliers and partners
370
stores nationwide in which to showcase their product
Communities and the planet
170k
bikes donated to charitable causes since 2013