Halfords has reported a stronger than expected performance in its full-year results as the group was aided by a cost savings drive.

The motor and cycling retailer reported a 6.4% in its underlying pre-tax profit to £38.4m, having previously expected the figure to come in between £32m and £37m.

Halfords, reporting its results for the year to 28 March, also revealed it had that delivered cost savings totalling £35m in the year, helping to offset around £33m of inflation – which the retailer put down mostly due to increasing labour costs as a result of the increase to the minimum wage.

The group revealed that its trading in the early weeks of FY26 has been “in line” with expectations but said it would remain “cautious” on its outlook for consumer spending, ahead of another year of what it described “elevated inflation”.

CEO, Henry Birch, who was appointed to Halfords in April, said the business had delivered a “strong financial performance” and that the company also has a plan in place to “tackle external inflationary forces”.

“Halfords has a unique combination of retail stores, garages and mobile vans, a trusted brand, scaled omnichannel infrastructure, and access to valuable proprietary data,” Birch added. “It is an exciting time to be joining and I see significant potential to optimise and grow this fantastic business.”

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