Halfords has recorded a 4.8% increase in its group like-for-like (LFL) sales in the year to 3 April, with retail LFL sales jumping by 4.1%.

The motoring and cycling products and services provider also saw its autocentres LFL sales rise by 5.8%.

Halfords added that in this period, its underlying profit before tax is expected to be in the upper end of the consensus range of £36m to £41.2m, as a result of further gross margin expansion and "well managed costs".

The firm added that it continues to be cash generative and its balance sheet closed the period in a net cash position.

Halfords said that while the conflict in the Middle East is contributing to an “uncertain macroeconomic backdrop”, trading in March and April has been in line with expectations.

It stated that the majority of its FY27 energy costs and FX requirements are hedged with freight rates largely contracted in advance, supporting visibility and mitigating near-term volatility.

As a result, the retailer expects its underlying profit before tax to reach consensus expectations of between £42m and £48.6m.

Following the announcement, shares in Halfords increased by almost 10%.

Chief executive at Halfords, Henry Birch, stated: "I am pleased to see the positive results that are starting to materialise from the ‘optimise’ phase of our ‘Fit for the Future’ strategy as we focus on driving operational excellence and strengthening our foundations for future growth. This momentum further underlines the significant potential that exists within the Halfords business, and I look forward to sharing more detail on our progress at our full-year results announcement in June.

"In the meantime, I want to thank the 12,500 trusted experts in our stores and garages who have played a critical role in delivering this performance. They are the heart of this business and will continue to make Halfords the nation’s first choice for motoring and cycling, providing our customers with the helpful advice and service that keeps them moving day after day."

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