On 27 June 2024, Halfords Group plc reported preliminary unaudited financial results for the year ended 29 March 2024. In short, the well-known automotive retail business reports that sales were up, but pre-tax profits were down amidst ‘major restructuring of tyre supply chain’ in 2024, which is a reference to the sale of the Viking International business to Bond International during the period.
After years of strong and often tyre-driven profit growth, Halfords Group plc has warned investors that “further material weakening” in “cycling, retail motoring and consumer tyres” will result in “a significant drop in like-for-like revenue growth”. As a result, that specifically means £13 million less “underlying profit before tax (PBT)”, than previously stated or PBT “in the range of £35-40 million”.
Following the news that Bond International is set to acquire the Viking tyre wholesale business, Halfords Group executives have confirmed to Tyres & Accessories that, Bond will indeed acquire the Viking and Birkenshaw tyre wholesale businesses. At the same time, Halfords Group commercial director/director Halfords Commercial Fleet Services, Robin Shaw clarified that the Bond acquisitions only include the McConechy’s warehouse in Warrington which came into the Halfords group as part of its McConechy’s acquisition in 2019. Meanwhile, Halfords continues to invest in its Commercial Fleet Services operations which have grown out of Halfords’s acquisitions of the members of ULM – Universal, Lodge and McConechy’s.
Yodel, one of the UK’s leading parcel carriers, has awarded a five-year tyre management contract to Halfords Commercial Fleet Services. Halfords Commercial Fleet Services’ position as the UK’s largest commercial service network with 104 depots and over 500 dedicated mobile vans was cited as a major factor behind decision.
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