Core Insights - UK-based Halfords reported a modest rise in first-half 2025 profit, driven by a recovery in cycling demand and improved margins, despite higher operating costs [1] - The company outlined a three-stage plan focused on efficiency gains, technology investment, and expansion of its digital and garage networks [5] Financial Performance - Underlying profit before tax increased by 1% to £21.2 million ($28 million) for the 26 weeks ending September 26, 2025, compared to £21 million the previous year [1] - Group revenue rose by 3.3% to £893.3 million, with like-for-like growth of 4.1% [1] - Reported profit before tax was £17.2 million [1] Segment Performance - Cycling sales were a standout performer, increasing by 8.8% to £208 million, or 9% on a like-for-like basis, aided by market recovery and favorable weather [2] - Retail revenue grew by 3.3% (4% LfL), while the Autocentres division also saw a 3.3% increase (4.3% LfL) [2] - Motoring revenue remained relatively stable at £324.3 million, with a 1.1% increase on a like-for-like basis [2] Operational Highlights - Group gross margin improved by 200 basis points to 51.4%, attributed to the Better Buying cost-efficiency program [2] - Free cash generation reached £27.6 million, with net cash at £18.6 million at the end of the period [3] - The Coventry distribution center returned to normal operations, although it incurred £3.1 million in additional non-underlying costs to ensure product availability [3] Strategic Developments - Halfords is expanding its Fusion garage concept, with 79 locations currently trading and a goal of reaching 150 sites by fiscal year 2027 [4] - Membership of the Halfords Motoring Club increased to around six million, including over 400,000 Premium subscribers, generating £20 million in annual subscription income [4] - The company appointed Sarah Haywood as CIO, effective November 2025, to strengthen its senior team [4] Leadership Changes - Chair Keith Williams will step down by the Annual General Meeting scheduled for September 2026 [5]