Russ Mould, investment director at AJ Bell, said: “Halfords’ results show the business is putting the pedal to the metal with its network of garages acting as an engine for growth.
“He may only have been at the wheel for a little over a year, but CEO Henry Birch is already making a big difference as Halfords returns to profit and unveils its strongest margins in a decade. This has been achieved by selling fewer products at a discount, suggesting Halfords has got a handle on inventory management.
“Appropriately enough, Halfords’ bike sales are always more cyclical than its auto services and products, but the company is riding an upswing in demand after the post-Covid lows.
“Despite a tricky consumer backdrop, demand has been resilient with the momentum seen in early spring continuing into the summer.
“Halfords’ shareholders have experienced ups and downs over the years so may remain wary, but strong cash generation and improved profitability will create hope that the business is on a sustainable path.
“The market seems to be unfazed by the change of chair, with Jock Lennox coming in to replace Keith Williams.”
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