Halfords: Make do and mend

FIRM TARGETS REPAIRS AS PROFITS SLIP

HALFORDS yesterday announced plans to hire another 1,000 mechanics – while delivering a profit warning to investors.

The hiring spree over the next year comes amid what the firm said was rapidly increasing demand for vehicle servicing, MoTs and repairs.

Halfords, which owns the Autocentres chain, is the UK’s biggest provider of motoring services with over 600 garages and nearly 700 mobile mechanic vans.

The firm said it would prioritise attracting retirees back into the workforce while also increasing the number of women technicians.

However, Halfords revealed a decline in profits as customers reined in non-essential spending.

The group made £29million in the six months to the end of September, down from £57.9m a year ago and £1.2m below its pre-pandemic levels.

It warned full-year profits would be towards the lower end of a £65m to £75m range.

The latest results showed more than 40% of sales came from “service-related sales”, up from a third a year ago.

But sales of vehicle parts fell as demand for needs-based products was offset by a decrease for sales of parts that were more expensive but non-essential. Cycling sales fell 12% year-on-year. Halfords boss Graham Stapleton hailed a “resilient financial performance”.

But investors weren’t so sure, and its share price, down more than 40% since the start of the year, tumbled more than 7% during trading yesterday.