Home - Halfords Group plc Annual Report 2021

Halfords is the UK’s leading provider of motoring and cycling products and services.

Our purpose is to Inspire and Support a Lifetime of motoring and cycling. Our vision is to be the super-specialists in motoring and cycling, trusted by the nation.

Evolving into a consumer and B2B services-led business, positioned for long-term success.

Our unique market position means we can offer customers products and services for all their motoring and cycling needs under the Halfords brand. We have proven that our strategic direction is right and with our highly skilled colleagues and strong culture, we are well-positioned to deliver for all our stakeholders.

We offer a unique proposition

We are the market-leader in motoring and cycling products and services, providing our customers with the convenience of over 900 fixed and mobile locations and with unparalleled specialist expertise.

We have a proven strategy

Our strategy is more relevant than ever. We have made progress against our strategic priorities with strong momentum continuing in a challenging operating environment.

We have a strong culture

Our colleagues live our values and demonstrate a ‘can do’ attitude, making them the foundation of our long-term sustainable success.

We offer a unique proposition

We are an essential retailer, providing our customers with unparalleled choice and convenience.

We have a proven strategy

Our strategy is more relevant than ever. We have made a strong progress against our strategic priorities with a strong momentum continued in a challenging operating environment.

We have a strong culture

Our colleagues live our values and demonstrate a ‘can do’ attitude, making them the foundation of our long-term sustainable success.

Our Purpose, Values, Strategy and Culture

Our Purpose

Why we exist

To Inspire and Support a Lifetime of motoring and cycling culture

Our Vision

Our aspirational goal

The super-specialist in motoring and cycling, trusted by the nation.

Our Mission

Our achievable goals

Make motoring easier, safer and more enjoyable for everyone
Get more people cycling, more frequently

Our Strategy

How we achieve our Purpose and Mission

1

Inspire

Inspire our customers with a differentiated and superspecialist offer.

2

Support

Support our customers through an integrated, unique and more convenient services offer.

3

Lifetime

Enable a lifetime of motoring

and cycling.

Our Values

Fundamental beliefs that underpin everything we do

One Halfords family

Wow our customers

Pride in expertise

Be better everyday

Our Culture

Ethical foundation enabling better decisions every day

Monitoring Culture
The Board plays an active role in monitoring the culture of the business through its regular facilitation of listening groups and site visits. The Board reviews the results of the annual colleague engagement survey and sets engagement targets for Executive Directors and Executive Committee members. The outputs of listening groups and associated action plans are reviewed by the Board and key actions are incorporated into functional engagement plans.

Revenue (£m)¹

+13.1%

Profit before tax (£m)^1,2

+184.1%

Underlying basic earnings per share (p)^1,2

+67.5%

Underlying profit before tax (£m)^1,2

+72.3%

Dividend per ordinary share (p)

-19.0%

Basic earnings per share (p)^1,2

+139.8%

Total Group sales which are service-related

29%

Total Group sales from online channels

44%

Halfords.com online orders click and collected in-store

80%

Total Group sales from B2B channels

18%

Group Highlights

Financial Highlights
Operational Highlights

Revenue (£m)¹

+13.1%

Profit before tax (£m)^1,2

+184.1%

Underlying basic earnings per share (p)^1,2

+67.5%

Underlying profit before tax (£m)^1,2

+72.3%

Dividend per ordinary share (p)

-19.0%

Basic earnings per share (p)^1,2

+139.8%

75%

Group revenue matched to customers

24%

Total Group sales which are srevice-related

83%

of Halfords.com online orders click and collected in-store

80

In-store Retail services across motoring and cycling

0.8:1

Net debt to Underlying EBITDA ratio

20%

Group revenue from online sales

Chair's Statement

Our colleagues at Halfords provided over 480,000 services to key workers and over a million services during full lockdowns to those needing our support.

Keith Williams

Chair

Chief Executive's Statement

We are delighted to have delivered a year of very strong financial and operational progress, especially in light of the extraordinary challenges presented by the pandemic. As ever, I would like to thank our outstanding colleagues across the business for their hard work, professionalism, and dedication.

Graham Stapleton

Chief Executive Officer

Keeping the UK moving during the pandemic

Our status as an essential retailer was a clear endorsement of the wider role Halfords plays in keeping the UK moving, by continuing to offer products and services to those who needed them.

Our Marketplace

Our Motoring and Cycling products segments remain core but we have a greater market opportunity in growing our existing services business. We will evolve into a consumer and B2B services-focused business, with a greater emphasis on motoring.

Our ESG Strategy

We are committed to an ESG agenda which aims to exceed our stakeholders’ expectations. Building on our strategy announced last year, we are now starting to make meaningful progress.

To Inspire and
Support a Lifetime
of motoring
and cycling