Halfords Group
Annual Report 2024

HALFORDS GROUP PLC 
Annual Report and Accounts 
for the period ended 29 March 2024
LEVERAGING 
OUR UNIQUE, 
DIGITAL AND 
DATA-ENABLED 
OMNICHANNEL 
PLATFORM

Welcome to our 
2024 Annual Report
Halfords is the UK’s 
leading provider of 
motoring and cycling 
products and services.​
Halfords has a clear strategy that 
we are delivering . . .​
. . .​ evolving into a consumer and B2B services focussed business, with a greater 
emphasis on motoring generating higher and more sustainable financial returns. 
For the first time ever, more than half of the Group’s revenue now come from services. 
Our unique market position means we can offer customers products and services 
for all their motoring and cycling needs under the Halfords brand.
Our Integrated Report
This is our tenth integrated report and is designed to provide a concise overview of 
how we generate value for all stakeholders. By following an integrated reporting model, 
we aim to show how our competitive advantage is sustainable in the short-, medium-, 
and long-term. Whilst this report focusses on value generation for our shareholders, 
it also demonstrates how we interact with all stakeholders.
Online Annual Report
Read our Annual Report online, 
including a link to the full 
Remuneration Policy: 
halfords.annualreport2024.com
Corporate Website
Catch up with our latest news and 
learn more about Halfords on our 
corporate website: 
www.halfordscompany.com
Capital Markets Day
See the latest investor presentation 
on our corporate website: 
www.halfordscompany.com
GROUP OVERVIEW
Group Highlights
01
Our Year in Review
01
Our Purpose-Led Framework
02
Our Attractive Investment Case 
04
Our Journey
06
Chair’s Statement
08
Group at a Glance
10
Unique
12
Digital and Data-Enabled
16
Future
20
STRATEGIC REPORT
Our Business Today
26
Chief Executive Officer’s Statement
28
Our Marketplace
34
Business Model
38
Our Engagement with Stakeholders
40
Section 172(1) Statement
42
Our Key Performance Indicators
45
Our Strategy
48
Our ESG Strategy
54
TCFD
69
Chief Financial Officer’s Statement
76
Risk Management
81
Principal Risks
82
Going Concern and Viability Statement
90
OUR GOVERNANCE
Governance at a Glance
94
Board of Directors
98
Executive Team
100
Corporate Governance Report
102
Nomination Committee Report
120
ESG Committee Report
124
Audit Committee Report
126
Remuneration Committee Report
132
Directors’ Report
150
Directors’ Responsibilities
155
FINANCIAL STATEMENTS
Independent Auditor’s Report
158
Consolidated Income Statement
168
Consolidated Statement of 
Comprehensive Income
169
Consolidated Statement of 
Financial Position
170
Consolidated Statement of Changes in 
Shareholders’ Equity
171
Consolidated Statement of Cash Flows
172
Notes to Consolidated Statement of 
Cash Flows
173
Accounting Policies
174
Notes to the Financial Statements
186
Company Balance Sheet
214
Company Statement of Changes in 
Shareholders’ Equity
215
Accounting Policies
216
Notes to the Financial Statements
217
SHAREHOLDER INFORMATION
Five-year Record
224
Glossary of Alternative Performance 
Measures
225
Company Information
226

Group Highlights
Our year in review
Financial
Strategic
Revenue
Underlying profit before tax
In April 2023, we held a Capital Markets Day (“CMD”) for analysts 
and investors, in which we demonstrated the unique, digital and 
data-enabled omnichannel platform that has been developed in 
the previous five years. We then explained how we will leverage this 
platform to deliver on significant mid- and long-term opportunities. 
The CMD presentation is available on our corporate website,                                   
www.halfordscompany.com
51%
of the Group’s revenue now comes 
from Services.
Read more on page 26
+7.9%
-7.9%
FY24
FY23
FY22
FY21
FY20
£1,142.2m
£1,292.3m
£1,382.4m
£1,572.7m
£1,696.5m
£56.9m
£99.5m
£89.8m
£46.8m
£43.1m
FY24
FY23
FY22
FY21
FY20
Operational
Operational
Halfords Motoring  
Club members
Group NPS 
The success of the Halfords Motoring Club continued in FY24, with 
over 3.4 million members now signed up, well ahead of our target. 
The benefits of the Halfords Motoring Club are clearly resonating 
with customers looking for value in a cost of living crisis. The Halfords 
Motoring Club is a core element of our mid- to long-term strategic plan, 
with vehicle and vehicle health data central to our Lifetime strategy. 
Our goal is to drive stronger data analytics, predictive modelling, 
monetisation, and even more profitable utilisation, alongside a highly 
personalised customer experience.
18.3m
vehicle registration numbers in CRM 
(customer records), representing 
approximately half of the UK car parc. 
Read more on page 38
Doubled
+0.7 pts
1.7m
3.4m
FY24
FY23
FY22
FY21
FY20
60.1
62.3
68.4
64.8
65.5
FY24
FY23
FY22
FY21
FY20
Scores from FY23 onwards on new basis. 
Further details on page 47.
Sustainability
Sustainability
Scope 1 and 2 carbon 
emissions (tonnes)  
(% vs FY20 baseline)
Reduction in Consumer-
facing virgin plastic  
(vs FY20 baseline)
The Group is making good progress on its carbon emissions targets. 
Scope 1 and Scope 2 emissions increased during the period, primarily due 
to growth of the business, but were 24% lower than the FY20 baseline. 
Significant progress was made in calculating accurate Scope 3 emissions, 
providing the Group with a strong basis for its Net Zero roadmap. 
The Bike Xchange programme continued to grow in FY24, with 
c. 16,000 second-hand bikes returned to our stores and, once 
refurbished, either resold or gifted to charities for onward distribution to 
communities in Africa. 
49%
reduction in Scope 1 and 2 carbon emissions 
versus FY20 baseline  
(on a tCO2e per £1m of revenue basis).
Read more on page 54
-24%
-41%
31,799
20,888
22,328
24,233
FY24
FY23
FY22
FY21
FY20
17.0%
37.5%
41.0%
FY24
FY23
FY22
 halfords.annualreport2024.com
01
GROUP 
OVERVIEW

The successful delivery of our strategy is critical to the delivery of the Group’s 
purpose and is underpinned by the values and behaviours that shape our culture  
and the way that we conduct our business.
Read more on page 48
OUR 
PURPOSE
To INSPIRE 
and SUPPORT a 
LIFETIME of motoring 
and cycling
OUR 
VISION
The super-specialist in motoring and 
cycling, trusted by the nation
OUR 
MISSION
To make motoring easier, safer and more enjoyable 
for everyone and to get people cycling, more frequently
Our Culture
Our Values
Our approach to ESG
one halfords 
family
wow our  
customers
be better  
every day
pride in  
expertise
A team inspired and motivated to drive 
towards delivering our Goals, Mission, 
Vision and Purpose who live and breathe 
our brand values and represent the very 
best of what we offer as a business to 
our customers.
Focussed on the areas where Halfords can 
make a real difference and lead the industry 
to a better, more sustainable future. 
Read more on page 106
Read more on page 54
02
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR PURPOSE-LED 
FRAMEWORK

GROUP 
OVERVIEW
 halfords.annualreport2024.com
03

The platform we have created and will leverage going forwards:
Since the launch of our ‘Inspire, Support, Lifetime’ strategy in 2018, we have worked 
hard to maintain the strong heritage that Halfords has built over the last 130 years, 
whilst developing a business that is relevant today and in the future. 
We have built a market-leading motoring and cycling business that possesses a unique combination of products and services,  
delivered through an unrivalled breadth of channel convenience. 
Read more on page 38
Resilient services and 
commercial business
Resilient and recurring revenue 
streams from services and commercial 
propositions, driving higher, more 
sustainable operating margins.
A trusted brand
A brand with good awareness, 
consideration, and significant heritage.
Data driven
With access to data from almost 
half of the UK’s ageing car parc and 
a growing Halfords Motoring Club, 
data is driving growth in revenue.
Market leading businesses 
Well placed to capitalise on 
attractive markets rebounding from 
historic lows.
Differentiated 
operating model
Unique combination of stores, 
garages, vans and expert colleagues 
offering an unrivalled breadth of offer, 
channel mix, and convenience.
Read more on page 26
WELL 
INVESTED  
PLATFORM TO 
LEVERAGE
The major investment has been made. 
Halfords is now the UK’s largest 
motoring and cycling 
services business. Significant 
digital and data 
capability.
04
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ATTRACTIVE  
INVESTMENT CASE 
Over the Short-, Mid- and Long-Term

Opportunities over the mid- and long-term
The UK’s one-stop shop 
for motoring ownership
Giving customers the ability to access 
all motoring products and services 
they need from one provider.
Avayler, a growing 
SaaS business
A growing Software as a Service 
(“SaaS”) business attracting compelling 
revenue-based valuation multiples.
A unique local motoring 
and cycling offer
Through Project Fusion, we have 
learnt the value of town-based 
shopping for both our customers and 
our business.
The UK’s servicing 
destination for electric 
transport
Ambition to build a market-
leading position.
Read about our Capital Markets Day at:
www.halfordscompany.com
WELL 
INVESTED  
PLATFORM TO 
LEVERAGE
 halfords.annualreport2024.com
05
GROUP 
OVERVIEW

HALFORDS RETAIL
MOTORING, CYCLING AND LIFE’S JOURNEY
GARAGES AND AUTOCENTRES
               
                          
                            
                             
                           
       Garages
 and Aut
ocentres
     
        
          
           
           
          
           
             
           
           
            
          
           
           
2004
2010
2014
2016
Halfords
Expand service offer from 
WeFit to full service
Halfords
Expand cycling offer, including more premium 
bikes, repair services, online channels, and new 
brands like Boardman and Tredz
20 years on the London Stock Exchange. 
We have come a long way. 
Through targeted acquisitions, continued development and launching our own SaaS business,  
we are continuing to evolve, increasing our market share to become the largest provider of motoring  
and cycling products and services in the UK.
2010
Autocentres
Acquisition of 
Nationwide 
Autocentres 
and rebrand to 
Halfords
2014
Boardman
Acquisition 
of premium 
bike brand
2016
Tredz
Acquisition of 
premium cycling 
business
“We are proud to mark 20 years on the  
London Stock Exchange. Halfords has 
changed enormously in this time to become 
the UK’s largest provider of motoring and 
cycling services and products.”
Graham Stapleton
Chief Executive Officer
06
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR 
JOURNEY

Cy
cli
ng
           
            
            
                                                                                             Mobile vans
2018
2019
2020
2021
2022
2023
2024
Tyre centres 
Halfords
Start to expand coverage of the 
attractive tyre supply market
Halfords
Expanding data capture
Halfords
Bespoke software development ‘Avayler’
2019
Tyres on 
the Drive
Entry into mobile 
tyre fitting market
2019
McConechy’s
Entry into tyre 
fitting market, 
for consumers 
and fleets
2022
Launched 
Halfords 
Motoring Club
2021
National
Acquisition 
brings total 
garage estate 
to more 
than 600
2022
Acquisition of 
Lodge makes 
Halfords the 
UK’s largest 
commercial tyre 
provider
2022
Fusion 
concept
A unique, 
omnichannel, 
town-based 
experience for 
customers
2023
Avayler
Sale of 5% 
stake to 
Bridgestone
 halfords.annualreport2024.com
07
GROUP 
OVERVIEW

I ended my FY23 statement with reference to 
our Capital Markets Day in April 2023, where 
the Management team presented an updated 
strategy for the medium- and long-term 
future of the Halfords group. Whilst the 
strategy and our ambitions remain on 
track, market conditions in FY24 have been 
worse than we anticipated. Persistently high 
consumer inflation and elevated interest rates 
have resulted in low consumer confidence 
and weak demand for discretionary products, 
whilst significant cost inflation continued to 
adversely impact the Group.	
In the face of challenging market conditions, 
the business has focussed on the areas it can 
control, adapting well to short-term trading 
volatility and continuing to make strong 
progress operationally and strategically. 
Better utilisation of labour and the expansion 
of dynamic pricing is helping to drive more 
profitable growth in our Autocentres business, 
whilst ongoing investment in range and 
product innovation have strengthened our 
Retail business. Our Halfords Motoring Club 
has proven to be very popular with customers, 
with more than 3.4 million members now 
signed-up. Our Fusion towns – Colchester 
and Halifax – have seen impressive financial 
results, giving us the confidence to invest 
further in this initiative. And finally, our B2B 
businesses continue to grow very strongly, 
with Commercial Fleet Services a key highlight 
as it leveraged its national scale to win several 
large contracts. The business also continued 
to reduce the cost base, with over £35m of 
cost removed in FY24. I am confident that 
the significant progress made this year gives 
Halfords an even stronger platform for when 
markets finally recover. 
Challenging markets meant that FY24 was a 
difficult year for the Group, but I am confident 
that we are making the right decisions 
to drive profit and cash generation in the 
short-term and strengthen the business for 
the long-term.
Keith Williams
Chair
Read more on page 48
Building a strong 
platform for 
profitable growth
08
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CHAIR’S 
STATEMENT

Colleagues 
Our colleagues remain at the heart of our 
business, and it is their skill and passion 
that makes Halfords the first choice for our 
customers. The Group now employs over 
12,000 colleagues in stores, garages, and 
our mobile van fleet, supported by dedicated 
central support teams, distribution centres 
and field colleagues. They have adapted 
quickly to changing market conditions 
and I would like to thank them all for their 
significant contribution in FY24. 
Board and Leadership
After nine years as a Non-Executive Director 
and three years as the Senior Independent 
Director, Helen Jones retired from the Board 
in September 2023. I wish to express my 
sincere thanks to Helen for her significant 
contributions and service to the Group 
since 2014. 
Tanvi Gokhale was appointed to the Board 
in June 2023 as a Non-Executive Director 
and succeeded Helen as Chair of the ESG 
Committee and Employee Voice Director. 
Tanvi brings significant experience to the 
Group, and I am sure that she will contribute 
greatly to the ongoing success of Halfords.
Dividend 
At our Capital Markets Day in April 2023, 
the Group gave clear guidance on its capital 
allocation priorities, including its dividend 
policy, which is to target dividend cover in 
the range of 1.5x to 2.5x of Underlying Profit 
After Tax. In line with our dividend policy 
and reflecting the profit delivered in the 
year, the Board proposes a final dividend of 
5.0 pence per share, bringing the full year 
dividend to 8.0 pence per share. This is a 
reduction of 20% on the prior year, reflecting 
the reduction in earnings and the Board’s 
commitment to the Group’s dividend policy 
and the continued maintenance of a strong 
balance sheet. The Board remains confident 
in the Group’s strategy and mid-term plans 
and looks forward to increasing the dividend 
once profit growth returns. 
Looking ahead 
A recovery in the Group’s core markets 
in FY25 is far from certain, as consumers 
continue to be impacted by a significant 
increase in their cost of living. The 
Management team is planning for another 
year of subdued demand, whilst taking action 
on areas under their control. This includes a 
continued focus on cost reduction, further 
growing profitability in Autocentres, and 
investing in opportunities with good returns. 
I am confident that we are taking the right 
decisions for FY25 and beyond. 
Keith Williams
Chair
17 July 2024
Underlying Profit Before Tax 
(Continuing Operations)
£43.1m
Dividend Per Share 
(Full-Year)
8.00p
 halfords.annualreport2024.com
09
GROUP 
OVERVIEW

387
Stores
639
Garages
768
Mobile Vans
385 Halfords Retail and 
2 Performance Cycling 
stores offering a wide 
range of motoring and 
cycling products and on 
demand services.
639 garages offering 
MOT, service, 
maintenance and repair 
services.
273 direct to consumer vans and 495 
commercial vans, bringing services direct 
to customers.
Customer 
Contact Centre
Offering expert advice, knowledge and help 
from a centralised, virtual location.
Click and 
Collect
Enabling customers to pick up  
products at their local store.
Integrated  
Web Platform
Bringing together Halfords products and 
services under one website.
B2B
Offering products 
and services, across 
both motoring 
and cycling, to 
businesses around 
the UK and ROI, 
including our market- 
leading Cycle2Work 
scheme.
Avayler
Avayler technology empowers Halfords 
service technicians to deliver an unrivalled 
experience. This platform is now being sold 
to third parties as a SaaS solution. 
Halfords UK and Ireland operations
We are the UK’s leading provider of motoring and 
cycling products and services. We fit products, attend 
call outs, and maintain more vehicles in the UK than any 
other provider. 
Avayler, based on the internally developed software that powers our Motoring Servicing 
business, has been sold to third-party customers as a SaaS solution. The unique platform that 
has been built leaves the business exceptionally well-positioned to maintain and extend its  
market-leading proposition. 
Halfords has over 12,000 
colleagues working in more than 
1,750 service locations, providing 
customers with an average 
drivetime of less than 20 minutes. 
10
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
GROUP AT 
A GLANCE

Each channel of the Halfords Group works together to provide an unrivalled customer proposition in towns and cities across 
the UK and Republic of Ireland. 
Group
Revenue
M
o
t
o
ri
n
g
C
y
c
li
n
g
Services
Products
Mainstream Cycling
15%
Retail Motoring
30%
Services
51%
Performance Cycling
4%
Cycling Services 3%
Retail Motoring Services 6%
Autocentres – 
Consumer 31% 
B2B 11%
Over 12,000 colleagues work in our stores, Autocentres and Mobile Expert hubs, at over 1,750 locations across the UK.
Our core ESG Priorities
Electrification
Net Zero
Diversity and 
Inclusion
Product, Packaging 
and Waste 
Management
Avayler Software Global Progress
United States
Germany, Spain, France and Portugal 
Avayler is the chosen software for major brands operating across 
the United States, including:
•	 ATD and Tire Pros – 80,000 garages in the US 
•	 Tirebuyer – 18,000 installers
•	 Bridgestone – over 2,000 garages in the US
These garage numbers represent the client’s total estate, not the number of garages in 
which Avayler is implemented.
Avayler has been chosen by Mobivia, one of Europe’s largest 
automotive companies, to optimise operations and customer 
service in its garages and mobile units.
 halfords.annualreport2024.com
11
GROUP 
OVERVIEW

Our unique, omnichannel 
platform delivers a truly 
differentiated offer
12
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
Unique

>1,750
Service locations, across 
stores, garages and vans
>10m
Service jobs 
completed annually
Omnichannel
Delivered with consistent,  
local support through a name  
our customers trust.
From first car seats and bikes, through to routine check 
ups and MOTs, our unique combination of stores, 
garages, vans and online, provides customers with 
unparalleled convenience to shop our products and 
services in a way that suits them.
Stores
 
86%
of the population 
are within a 
20-minute drive
Garages
 
90% 
of the population 
are within a  
20-minute drive
Vans
 
90% 
of the population 
are within easy 
reach
•	 Local referrals from store to garage
•	 Local dynamic price promotion
•	 Local targeted fleet client growth
•	 Predictable reoccurring Halfords 
Motoring Club customers 
•	 Local sharing of Group colleagues 
across stores, garages and vans
•	 Local forecasting of demand 
enabling local matching to capacity
•	 Digitised consistent operational 
processes
•	 Capacity and utilisation tracking
Systems and 
technology
Creating local demand 
and making our customers 
lives easier.
Drive 
utilisation
Creating local capacity to 
meet demand.
 halfords.annualreport2024.com
13
GROUP 
OVERVIEW

Rapid growth in our B2B client base provides more 
predictable and reliable revenue streams. 
Revenue growth in our B2B businesses 
continues to outpace the rest of the Group, 
reflecting the strategy to invest resources 
and effort into these profitable channels. 
Our B2B revenues are more resilient to 
consumer sentiment and more predictable 
in nature. 
Our B2B business is comprised of six key areas
01
Commercial 
Fleet Services
The acquisitions 
of Lodge, 
Universal and 
McConechy’s 
has transformed 
Halfords into 
the UK’s largest 
truck tyre 
service provider.
 02
Avayler – 
Software as a 
Service
The Group’s 
bespoke, 
internally-
developed 
software has 
been packaged 
into a SaaS 
solution, and 
now has major 
clients in the US 
and Europe. 
03
Cycle2Work 
scheme
Halfords is the 
market-leader in 
the Government 
subsidised  
Cycle to Work 
scheme.
04
Trade Card
Halfords 
provides 
promotions 
and preferential 
terms for a 
large number of 
trade customers 
across the UK. 
05
Bulk 
Purchases for 
Business
The Group sells 
items in bulk to 
businesses, on 
both an ad hoc 
and regular 
basis. Previous 
examples 
include bikes to 
a holiday park 
and motorcycle 
helmets to a last-
mile delivery firm. 
06
Gift Cards
Like many 
retailers, 
Halfords sells 
third-party gift 
cards at the 
points of sale. 
£112m
Revenue growth
(FY24)
29%
Share of total revenue 
(FY23: 24%)
Group B2B revenue
£118m
FY24
FY23
FY22
FY21
FY20
FY19
FY18
% of Group revenue
FY24
FY23
FY22
FY21
FY20
FY19
FY18
10%
29%
£300m
£384m
£496m
14
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
B2B

The combination of Lodge, Universal and McConechy’s has 
made Halfords the UK’s largest truck tyre service provider.
Halfords is now the market-leader in 
the provision of truck tyre services in 
the UK market. Through the acquisition 
and consolidation of three leading 
regional businesses (McConechy’s, 
Universal and Lodge), the business 
now operates from 90 locations and 
has unrivalled geographical coverage. 
This includes the ability to reach more 
than 85% of UK main road locations 
within one hour, important for the key 
provision of tyre breakdown services.
Halfords Commercial Fleet Services 
aims to operate to the very highest 
standards with over 500 fully trained 
and accredited Technicians.
Its customer base includes key tyre 
manufacturer partners such as 
Bridgestone, Goodyear, Continental 
and Michelin; national fleets such as 
Yodel and AW Jenkinson Transport; 
Regional and Local Fleets; Councils 
and specialist companies such as 
Ports, Crane and Agricultural operators.
Read more on pages 28 to 32
 halfords.annualreport2024.com
15
GROUP 
OVERVIEW

Leveraging data  
and lifetime value
16
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
Digital and  
data-enabled

45m
vehicle  
records checked
141m
annual  
website visits
3.4m
Halfords Motoring  
Club members
Consistent and thorough data 
collection leads to greater insights 
and decision-making, generating 
value for our customers and for 
our business. 
We’ve invested in our data platform, gathering 
customer and vehicle data across multiple channels, 
which is then analysed and utilised to help us better 
understand our customers, their cars, and their bikes.
Analysing data
Via our Single Customer 
view, CRM and Group 
Data Platform.
18m
Vehicle registration 
numbers collected 
– nearly half the UK 
car parc.
Customer outputs
Via personalised 
emails, web pages and 
social posts.
£336m
of revenue from 
customers in our 
database.
Data collection
Via multiple touch points 
across a variety of 
channels.
>10m
Service jobs 
completed each 
year – more than 
any other provider.
Powering intelligence and personalisation across our customer touch points.
MOT 
reminder email
Cycling product 
recommender
Halfords Mobile 
Expert email
Tyre web 
personalisation
Weather 
personalisation email
•	 Using data to create personalised experiences is growing significant value for the Group.
•	 Growing Lifetime value is key to our strategy and we have headroom to grow.
 halfords.annualreport2024.com
17
GROUP 
OVERVIEW

What is Avayler?
Customer-centric service management software:  
built from Halfords Autocentres’ PACE and Tyres  
on the Drive technology.
Our mission is to help ambitious businesses put their customers 
at the heart of their operations by digitising service delivery, 
optimising processes and facilitating new routes to market.
Built by the automotive industry, for the automotive industry
What does Avayler deliver for its customers:
Scan the QR code 
to watch our video 
about Avayler
Avayler’s unique selling points make the solution highly attractive to  
large automotive service businesses.
Industry unique selling points
Feature/product unique
Dynamic  
pricing
 
While other solutions 
offer dynamic pricing, 
Avayler’s dynamic 
pricing is the only 
automotive solution that 
leverages technician 
location, job times 
and other factors to 
optimise route density 
and job profitability
Automatic parts 
bidding
Avayler is the only 
automotive solution 
to provide automotive 
price bidding, sourcing 
parts from multiple 
vendors and surfacing 
best prices and delivery 
for customers
01
 
Deliver fully digital 
customer journey
02
 
Increase 
transparency and 
visibility across the 
business
03
 
Streamline 
processes related to 
service delivery
04
 
Increase service 
margin and offset 
operational costs
05
 
Be an industry 
leader with greater 
market share
Omnichannel
The only solution 
on the market that 
manages and optimises 
automotive services at 
any location – mobile, 
garages, retail store and 
fleet locations
Built by 
operators
Avayler was built by a 
garage and automotive 
service business to 
directly solve their 
pain points
18
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
Avayler

How Halfords is using Avayler
Halfords creates a compelling customer 
experience and delivers operational excellence  
with an end-to-end developed in-house platform.
Selling Avayler software globally
Over 500,000 automotive repairers in Europe, US and UK alone provide a significant market opportunity for Avayler. 
Halfords.com 
eCommerce Platform
01
Offers customers the ability 
to omnichannel shop for and 
book automotive services
02
Halfords Mobile Expert and 
Tyres on the Drive Mobile 
Motoring Services Platform
03
Halfords Autocentres 
Garage Management 
Platform
04
Halfords Retail Motoring 
Services WeCheck 
Platform
MOBILE
GARAGES
RETAIL
United States
Total Automotive 
Repairers:
278,000
Total
Total Automotive Repairers:
>500,000
. . . even more opportunity in 
Mobile and Retail
United Kingdom
Total Automotive Repairers:
33,000
Europe
Total Automotive Repairers:
204,000
37,000 – France 
49,000 – Germany 
47,000 – Italy 
22,000 – Poland 
9,000 – Portugal 
40,000 – Spain
 halfords.annualreport2024.com
19
GROUP 
OVERVIEW

Our strategic focus has 
built a solid foundation for 
continued growth 
and evolution
01
The UK’s one-  
stop shop  
for motoring 
ownership
In delivering our strategy, we have built a solid foundation for continued  
growth and evolution. We have identified three key areas of opportunity 
for growth in the longer term:
02
The UK’s servicing 
destination for all 
types of electric 
transport
03
A unique local 
motoring and 
cycling offer
WHAT’S 
NEXT?
20
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
Future

£4.0bn
£9.0bn
£2.2bn
£3.5bn
£1.8bn
£0.4bn
(pass through insurance)
£3.2bn
(body repair)
75%
of customers found  
the proposition of a  
‘one-stop shop’ appealing
Majority
of customers saw Halfords 
as a good brand fit for this 
proposition
1,794
Halfords fitting and 
service locations, with 
c. 90% of the population 
within a 20-minute drive
 01
The UK’s one-stop shop for 
motoring ownership. 
We believe Halfords can support motoring customers 
throughout their vehicle ownership. 
The strong platform we have created enables us to expand into more areas of the motoring 
market, something customers both want and expect from us. Customers today must interact 
with multiple businesses to operate their cars. This adds both complexity and cost to the 
customer journey. 
Customers like the concept of a one-stop shop for motoring and believe the Halfords brand 
is a good fit. In the future, we intend to provide products and services that provide a one-stop 
shop for all vehicle ownership needs. Serving these additional markets would significantly 
increase our addressable motoring market, from £15bn to £24bn. The estimated sizes of each 
of these markets is presented below. 
Halfords 
accessories
Halfords 
tyres
Halfords 
warranties
Halfords 
repairs
Halfords 
breakdown
Halfords 
insurance
Halfords 
servicing
Halfords 
MOTs
 halfords.annualreport2024.com
21
GROUP 
OVERVIEW

 02
The UK’s servicing destination for all types  
of electric transport.
We are well-positioned to 
establish a market-leading 
position in the servicing of 
electric mobility, growing our 
revenue while supporting a more 
sustainable planet.
We already have significant scale as the UK’s 
biggest electric/hybrid servicing network. 
We have the capability and expertise for 
servicing electric vehicles, with over 2,000 
trained technicians, four Automotive training 
academies, and a national network of 
garages and vans. 
The speed at which UK drivers adopt electric 
vehicles and other modes of transport 
will be determined by several factors, 
including the UK Government’s approach 
to supporting a shift away from traditional 
combustion engines. 
We have already planned to solidify our position as market leaders through:
Resource  
and capability
Increase resource and capability in our 
stores and garages with 100% of our 
technicians trained to service EVs.
Mobile  
servicing
Leverage our capabilities, offering electric 
servicing and maintenance at locations 
convenient to our customers.
e-Bike and  
e-Scooter retail
We believe we will grow our market leading 
position and associated services. Further 
enhanced through Cycling Club.
Halfords  
brand
As the used EV car parc increases, we 
aim to build a Halfords brand position as 
the destination for servicing all types of 
electric transport.
Focussing on EVs, we have identified the areas 
where products and parts will remain the same 
as traditional vehicles and those that will be new, 
providing further opportunity.
Electric car
Traditional mechanical car
 Common components e.g. wipers and bulbs 
 Common, but more expensive or require more  
	
maintenance for electric cars e.g. tyres and brakes 
 Parts and services purely for the traditional car  
	
e.g. engine components 
 New parts and services specific to electric cars  
	
e.g. batteries and charge point
22
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
Future

 03
A unique local motoring and cycling offer. 
Through our Project Fusion 
trials, we have learnt the value of 
town-based shopping for both 
our customers and our business.
Fusion provides a unique, multi-channel offer 
to customers in their local town, providing 
unparalleled convenience.
We believe there is an opportunity for a 
Fusion town experience in more than half of 
our locations across the UK.
Scan the QR code to watch 
our video about Fusion
We have begun implementing the most 
capital efficient elements of Fusion and this 
will continue in FY25. This includes upgrading 
the Retail car park service provision, 
introducing a referral model to Autocentres 
garages and vans, and training colleagues 
to sell full solutions to every customer, 
every time.
In the future, we will look at the entire 
Halfords’ physical estate through a local lens, 
to ensure we have a town-based approach 
that optimises all of our local assets with the 
appropriate levels of investment. 
In the future, Retail stores will continue to play 
their unique role as a location for on demand 
fitting and as the only nationwide specialist 
showroom for products. However, they will 
also become a vital customer acquisition 
channel for our garages and an important, 
scaled source of customer data capture. 
We currently have 387 Retail stores, and we 
expect this to decrease to around 350 over 
the mid- to longer-term.
Moving to our consumer garages, in which 
we deliver more complex services, MOTs 
and repairs, and where we know electric will 
play an even greater role in the long-term. 
We believe it will be necessary to grow from 
639 to 800 garages to offer the best levels of 
convenience for customers. 
And finally, we intend to complement our 
fixed locations with an increased network of 
consumer and commercial mobile vans and 
technicians, to reach a total of 800.
FY22
Fusion town concept tested 
in Halifax and Colchester.
Today
Capital efficient elements 
of Fusion rolled-out to 
50 towns.
FY25
Motoring Services 
elements of Fusion 
roll-out to c. 20 towns.
Mid- to long-term
50 of our towns expected 
to become full Fusion (lite) 
destinations. 25 towns per 
year in the outer years of 
the plan.
 Fusion test stores   Capital efficient elements   Fusion lite destinations
 halfords.annualreport2024.com
23
GROUP 
OVERVIEW

STRATEGIC 
REPORT
CONTENTS
Our Business Today
26
Chief Executive Officer’s Statement
28
Our Marketplace
34
Business Model
38
Our Engagement with Stakeholders
40
Section 172(1) Statement
42
Our Key Performance Indicators
45
Our Strategy
48
Our ESG Strategy
54
TCFD
69
Chief Financial Officer’s Statement
76
Risk Management
81
Principal Risks
82
Going Concern and Viability Statement
90
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
24

STRATEGIC 
REPORT
25
 halfords.annualreport2024.com

We are a consumer and B2B services-focussed business, with a greater 
emphasis on motoring, capable of generating higher and more sustainable 
financial returns.
Group Overview
•	 The Halfords Group has evolved 
significantly since the ‘Inspire, Support, 
Lifetime’ strategy was launched in 2018. 
Today, Halfords is as much a Services 
business as it is a retailer of products, 
whilst Motoring revenue is nearly four 
times larger than Cycling. 
•	 Further, the Group has developed 
several B2B channels, serving a 
multitude of business customers across 
many different propositions. 
•	 This strategic transformation means 
that the Halfords Group is more 
resilient to macro-economic trends and 
changing consumer sentiment, and as 
a consequence is well-positioned to 
generate higher and more sustainable 
financial returns in the future. 
Motoring
Cycling
 Revenue 79%
Overview: The core of our business, offering 
customers services and product solutions for 
their motoring journeys. Our future ambition is to 
offer customers a “one-stop shop” where they 
can access everything they need during the 
ownership of their vehicle.
 Revenue 21%
B2B
Overview: Market leaders 
with strong customer 
affiliation and heritage, 
highlighting our strong 
environmental focus by 
promoting low-carbon 
forms of transport.
2018 Revenue
 Retail 86% 
 Autocentres 14%
2024 Revenue
 Retail 59% 
 Autocentres 41%
Lower working 
capital
Higher operating 
margins
Opportunity to 
enter adjacent 
markets
Highly predictable 
recurring revenue
High value 
relationships
We have significantly  
grown revenue through  
B2B channels.
 2018
 B2B Revenue: 10% 
 B2C Revenue: 90%
 2024
 B2B Revenue: 29% 
 B2C Revenue: 71%
26
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR BUSINESS 
TODAY

Services
Products
Overview: Services give Halfords a unique 
advantage over online competitors and provides 
a platform to develop long-term relationships 
with its customers. 
Motoring: Highly needs-based categories, 
from MOTs and Services to fitting a car bulb in a 
Retail park.
Cycling: From puncture repairs on an E-Scooter 
to bicycle service care plans, we help to increase 
the longevity of the products we sell.
Unique advantage 
over online rivals
Deeper long-term 
relationships with 
customers
 Revenue 51%
 Revenue 49%
Overview: An integral part of our business and 
what many customers recognise us for. We are the 
super-specialists in motoring and cycling, providing 
customers with an unrivalled choice of products 
that they both need and want. 
Motoring: Offering customers a vast range of 
products they may need for their vehicle, from a 
bulb or wiper blade to a roof box or a tow bar. 
Cycling: High-end performance bikes and 
accessories in Tredz and mainstream bikes and 
accessories in Halfords Retail, where we own two 
of the biggest brands in the UK, Carrera and Apollo, 
appealing to all cyclists from kids and families to 
fitness enthusiasts.
More needs 
based, less 
discretionary
Opportunity 
to consolidate 
fragmented market
Less FX 
exposure
Fleet Services
Trade Card
Bulk Purchases 
for Business
 Gift Cards
Avayler – Software as a Service
Cycle2Work
 halfords.annualreport2024.com
27
STRATEGIC 
REPORT

Successfully delivered 
on the areas within our 
control
Revenue and Markets 
performance
Faced with very tough markets, we 
remained focused on the areas within our 
control, taking significant market share 
(volume-based) to record overall revenue 
growth of +7.9%, of which LFL growth 
was +5.0%. Volumes in FY24 in two of our 
core markets – Cycling and Consumer 
Tyres (c. 32% of Group revenue in FY24) 
– were worse than independent forecasts 
anticipated one year ago. Customer 
confidence has remained weak, driven in 
part by rising interest rates that are high 
relative to recent history. These factors have 
impacted demand for both discretionary 
big-ticket items such as Bikes and Touring, 
and less discretionary big-ticket products, 
such as car tyres. Unfavourable weather 
conditions impacted key periods during the 
year, with high rainfall in the summer and 
winter seasons reducing demand for Cycling, 
Car Cleaning and Touring products. The 
poor weather also impacted overall footfall 
into stores, whilst the lack of cold snaps in 
the winter months impacted sales of blades, 
batteries and winter products. 
Autocentres
The Autocentres Group is comprised of three 
businesses: 
1.	Consumer Garages and Vans, focussed 
on the provision of tyre fitting and Service, 
Maintenance and Repair (“SMR”) services 
to consumers and fleets of cars or small 
commercial vehicles. Operates from 
549 garages and 273 vans. Accounts for 
c. 74% of Autocentres revenue. 
Our focus in FY24 has been to deliver on the areas that 
are within our control. We have made good progress 
both strategically and in further optimising the business 
to create a solid foundation for future growth. 
Graham Stapleton
Chief Executive Officer
Read more on page 34
28
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CHIEF EXECUTIVE 
OFFICER’S STATEMENT

2.	Commercial Fleet Services (“CFS”), where 
the acquisitions of Lodge, Universal 
and McConechy’s has made Halfords 
the UK’s largest truck tyre service 
provider. Operates from 90 garages 
and 495 vans. Accounts for c. 25% of 
Autocentres revenue.
3.	Avayler, the Group’s bespoke, internally 
developed software that is sold as a 
SaaS solution to major clients in the 
US and Europe. Accounts for c. 1% of 
Autocentres revenue.
Overall revenue growth in FY24 was once 
again very strong, up +17.6% year-on-year 
and +10.7% on a LFL basis. The revenue 
performance of each of the businesses was 
as follows:
•	 Consumer Garages and Vans
•	 Consumer Tyres 
–	 Market volumes fell year-on-year by 
-1.3%, well behind our expectation of 
+2.6% growth, as drivers continued 
to delay essential maintenance for 
longer than we, and the industry, 
anticipated.
–	 Facing a worse than expected market, 
we took significant share, up +0.4 
points. This was in part driven by an 
improved customer offer for tyre 
fitting, introducing a more affordable 
range and improving convenience 
through same-day fitting. 
•	 Motoring Servicing
–	 Against a forecast of broadly flat for 
FY24, the Motoring Servicing market 
grew by +0.9%, with good growth in 
H1 offset by a decline in H2, reflecting 
the ongoing impact of changing MOT 
seasonality caused by COVID-19 
disruption.
–	 We increased our market share in 
the year by +0.2 points, driven by 
several factors, including: (1) The 
success of our Halfords Motoring 
Club, with membership doubling to 
3.4m and approximately 40% of our 
MOT work now coming from club 
members; (2) the launches of our 
innovative ‘Buy Now Pay Later’ finance 
offer and dynamic pricing for MOT 
bookings, providing customers with 
greater choice and more affordable 
options; and (3) Improved utilisation 
rates in our garages, which was up 
+9.4 percentage points year-on-year, 
leading to better capacity planning 
across the garage network. 
•	 Commercial Fleet Services
•	 Revenue grew by 47%, in part benefiting 
from the annualisation of the Lodge 
acquisition in October 2022. 
•	 LFL growth in the year was +5.3%. 
With near national coverage, we 
are attracting new customers with 
nationwide requirements who can 
access an unparalleled network of 495 
commercial vans and 90 commercial 
garages. Further detail on our progress 
is provided below. 
•	 Avayler
•	 Revenue more than tripled from the prior 
year, including intercompany sales, up to 
£6.6m in FY24.
•	 Signed agreements with four new 
clients, including a 15-year commercial 
agreement with Bridgestone.
Retail
Retail comprises Retail Motoring (62% of 
Retail revenue) and Cycling (38% of Retail 
revenue):
•	 Retail Motoring:
•	 A resilient revenue performance, 
with LFL revenue growth of +4.9%, 
significantly better than market volume 
growth of +0.9%. Performance across 
the year was mixed, with strong growth 
of +8.2% in the first half followed by 
lower growth of +1.7% in H2, in large 
part due to very unfavourable weather in 
the winter months. 
•	 Market share increased by +1.3 points, 
ahead of our target of +0.6 points. The 
ongoing expansion of our Car Parts 
proposition, strategic price investment 
in key categories, and continued 
product innovation in areas such as Car 
Seats and Dashcams, all contributed 
to offsetting weak demand for big-
ticket discretionary categories such as 
technology and touring. 
•	 Cycling:
•	 LFL revenue declined by -2.8% versus 
FY23. The Cycling market performed 
significantly worse than the industry 
expected, with volumes declining by 
-4.0% in the year, far behind our own 
forecast of -1.0%. Low consumer 
confidence in the ongoing cost-of-living 
crisis has further impacted demand for 
big-ticket, discretionary items such as 
bikes. Another year of decline leaves 
bike market volumes c. 30% below 
pre-COVID-19 levels. 
Strong revenue growth 
+7.9%
Underlying profit before tax 
(Continuing operations)
£43.1m
•	 The market has become more 
challenging and competitive as it 
continues to consolidate quickly. 
Promotional participation increased 
by 33% year-on-year in H2, and more 
customers are purchasing on credit, 
leading to significant pressure on gross 
margins. The high-profile failure of 
Wiggle demonstrates a much broader 
challenge for Cycling businesses in 
the UK. 
•	 In very challenging market conditions, 
we were pleased to increase our share 
by +1.3 points, well ahead of our target 
of +0.7 points and further cementing 
our leadership of the UK Cycling market. 
This strong performance was driven by 
good progress in three key areas:
–	 Cycle2Work (“C2W”): revenue up 
+8.3% year-on-year, supported by 
the development of our new B2B 
platform for small and medium sized 
businesses. 
–	 Tredz: our online, high-performance 
cycling business delivered LFL sales 
growth of 11.1%, growing share and 
improving brand awareness in a fast-
consolidating industry. We launched 
a new website in the year, improving 
the customer journey and our online 
conversion rate, whilst our Trustpilot 
score of 4.7 at the period-end remains 
ahead of our main competitors. 
–	 Product innovation: we continued to 
innovate across our Cycling range. 
For example, the new Boardman SLR 
8.9 road bike combined best-in-class 
specification with a market-leading 
price point. 
•	 Looking ahead, as the clear market 
leader, we expect to emerge in an 
even stronger position once market 
conditions normalise.
 halfords.annualreport2024.com
29
STRATEGIC 
REPORT

Gross margin
•	 Gross margin % was 48.5%, -40 bps lower 
than last year. A very strong performance 
in Autocentres was offset by a decline 
in Retail. 
•	 Autocentres gross margin of 50.2% was 
180 basis points higher than FY23. The 
success of our Better Buying programme 
and several pricing initiatives more than 
offset the dilutive impact of the Lodge 
acquisition.
•	 Retail gross margin was 47.3%, -190 
bps lower than FY23, driven by foreign 
exchange headwinds in relation to the 
weakening of Sterling hedges versus 
the US dollar, and the dilutive impact of 
increased Cycling promotional activity in 
response to market consolidation. This 
was partly offset by very strong results 
from our Better Buying programme.
Strategic and Operational review
Our focus in FY24 has been to deliver on the 
areas that are within our control, recognising 
that our core markets remain very 
challenging. We have made good progress 
both strategically and in further optimising 
the business, creating a solid foundation for 
future growth. We have built a unique, digital-
enabled, omnichannel platform that will 
enable us to drive strong profitable growth 
once markets recover.
Growing Services and B2B 
We continued to invest in our Services and 
B2B businesses, which now represent 51% 
and 29% of Group revenues respectively. 
These businesses provide the Group with 
greater resilience against weak consumer 
confidence and are capable of generating 
higher and more sustainable financial returns. 
The Autocentres Group, which is comprised 
of the three businesses described further 
above, accounts for approximately 83% of 
Services revenue and c. 55% of B2B. 
Autocentres Group revenue growth was 
+17.6%, including +10.7% on a LFL basis, 
whilst underlying EBIT, including losses from 
Discontinued Operations, was £13.8m, 
representing significant growth on the prior 
year profit of £3.1m. All three Autocentres 
businesses contributed to this strong 
performance:
Consumer Garages and Vans – 
improved utilisation and pricing 
initiatives driving significant 
profit growth:
This material growth in Autocentres 
profitability reflected the delivery of several 
initiatives in our Consumer Garages and Vans 
business, including improved utilisation of 
colleagues and garage capacity, the launch of 
dynamic pricing for MOT and Tyre bookings, 
and an improved customer proposition for 
same-day tyre fitting. 
Commercial Fleet Services (“CFS”) – 
leveraging our market-leading offer 
and national presence
The October 2022 acquisition of Lodge 
complemented our existing commercial 
fleet services businesses, Universal and 
McConechy’s, establishing Halfords as the 
UK’s largest provider of commercial tyre 
services. The scale and national presence of 
this business is a key differentiating factor 
that attracts the UK’s largest commercial 
fleet operators. 
Revenue growth in FY24 was +47% in total 
and +5.3% on a LFL basis, driven in part 
by the award of new fleet contracts. The 
business was awarded a five-year contract 
with Yodel, who operate one of the largest 
commercial vehicle fleets in the UK, with over 
1,700 vehicles, adding to existing contracts 
with DHL, DPD, Evri and Kuehne and Nagel. 
We also provide services for several local 
councils and other public entities, including 
contract wins in FY24 with Dudley, Coventry, 
Liverpool and Cheshire West councils.
We are continuing to leverage the integration 
of our combined CFS business, with revenue 
and cost synergies tracking ahead of 
expectations.
30
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CHIEF EXECUTIVE 
OFFICER’S STATEMENT

Avayler – significant contract wins 
and an investment stake 
Our SaaS business ‘Avayler’ secured a 
landmark commercial agreement with 
Bridgestone, to roll-out Avayler software 
products across their US operations – 
potentially over 2,000 garages. The 15-year 
commercial agreement adds significant 
scale to our existing SaaS business in the US, 
growing the recurring revenue stream and 
underpinning our growth projections set out 
at our CMD in April 2023. 
In addition to the contract win, Bridgestone 
has taken a 5% equity stake in return for 
a $3m investment. This is a significant 
endorsement for the Avayler software 
platform and demonstrates its considerable 
growth opportunity. 
In the fourth quarter, we signed agreements 
with three new customers, all based in the 
USA. Our partnerships with Triple A (“AAA”), 
ZipTire, and Point S further enhance our 
market position with key players in North 
America. We are building momentum and 
have a strong pipeline in place for further 
customer acquisition targets. 
From an operational perspective, during 
the year we separated Avayler to operate 
as a standalone business, distinct from the 
Halfords Group. This will enable Avayler 
to attract talent and develop a culture 
appropriate for a young but fast-growing, 
global software business, whilst also ensuring 
that we can accurately measure the progress 
it is making and the returns it generates. 
Avayler Revenue more than tripled (including 
intercompany sales), to £6.6m in FY24, with 
an operating loss, as forecast, of £1.3m, 
as we continue to invest in technology and 
operations to support existing customers 
and future growth. In line with our CMD 
targets, we expect significant revenue and 
profit growth in the mid-term. 
Profitably growing market share
Halfords Motoring Club grew to  
3.4m members
Our Halfords Motoring Club was launched 
in March 2022, providing members with 
financial and non-financial benefits in return 
for closer engagement with Halfords and, 
in the case of Premium membership, a paid 
subscription. 
The benefits of the Halfords Motoring 
Club continue to resonate strongly with 
customers, with membership doubling to 
3.4 million by the year-end. In addition to 
providing customers with attractive benefits, 
the Halfords Motoring Club also creates 
significant value for Halfords:
•	 Members visit twice as frequently as 
non-members and spend more per visit. 
•	 Lower customer acquisition cost: 
Cross-shop1 for loyalty members 
was 16% in FY24, an increase of one 
percentage point on the prior year and 
four times higher than for non-members. 
Furthermore, 40% of MOTs in our 
Autocentres came through the Halfords 
Motoring Club, whilst 45% of members 
joining in FY24 are new to the Halfords 
Group. With the Halfords Motoring Club 
successfully driving customers into the 
Autocentres business, we expect our 
marketing spend on MOTs to reduce by 
35% in FY25. 
•	 The data we obtain provides an 
opportunity to monetise its value. 
•	 The Halfords Motoring Club provides 
a roadmap to future subscription offers 
across the Group. At the end of FY24, 8.0% 
of members were signed up to the paid, 
premium membership offer, an increase 
of 0.6% from the prior year and within the 
range of our mid-term target of 8-10%. 
1	
Cross shop is defined as the proportion of customers 
who have transacted with both Retail and Autocentres 
in the period. 
“We have continued to invest in our 
strategically important Services business, 
which for the first time now represents over 
half of our total revenues.”
Growing our market-leading 
extended Car Parts proposition
We extended our motoring offer with a 
major launch of a new specialist Car Parts 
proposition, providing customers with access 
to thousands of car parts in our stores and 
online. Our entry into the £1bn specialist 
car parts market has driven a more than 
doubling of revenue in the Parts category, 
with customers responding positively to 
our competitive pricing; a step change in 
convenience with a new click and collect 
in 60 minutes offer; and adding the 4th 
‘B’, Brakes, to our 3Bs (“Bulbs, Batteries, 
Blades”) proposition. 
Continuing to optimise 
the platform
Restructuring our tyre supply chain
We entered into an agreement with specialist 
tyre distributor Bond International, who will 
take responsibility for the tyre supply chain 
operation in the Autocentres business. This 
involves a significant restructuring of our 
tyre supply chain and will result in significant 
benefits for customers and shareholders. 
Costs will reduce by approximately £5m 
per annum from FY25 onwards, reflecting 
the operational efficiencies that Bond 
International can provide as a specialist, 
market-leading tyre distributor. Further, 
customers will benefit from better stock 
availability in garages, with contracted service 
levels with Bond International in place. The 
agreement will also drive better operational 
processes in our garages and hubs, helping 
to save cost, reduce inventory and improve 
controls. Over time, the partnership will 
unlock greater buying synergies and 
provide an opportunity to improve working 
capital efficiency. 
The restructuring resulted in the closure of 
tyre wholesale and distribution operations 
(Viking and BDL) that formed part of the 
National acquisition in December 2021. 
The transition of these operations to Bond 
International has enabled Halfords to retain 
the margin benefits of direct sourcing that 
came with having a wholly owned supply 
chain, but at considerably lower cost. The 
Bond International arrangement also enables 
a new same day tyre proposition bookable 
online across all Halfords and National 
branded garages, which the Viking and BDL 
operations would not have been able to fulfil 
without considerable scaling and capital 
investment. As such the transition of the tyre 
supply chain to Bond International is expected 
to enhance returns.
 halfords.annualreport2024.com
31
STRATEGIC 
REPORT

Cost and balance sheet efficiency
We continued to successfully manage our 
costs, delivering over £35m of savings in 
FY24, ahead of our £30m target. Over half 
of these savings were due to the success 
of our Better Buying programme, which has 
materially reduced our cost of goods on an 
ongoing basis through strategic supplier 
partnerships, value engineering, own-brand 
growth, and group buying synergies. The 
cumulative cost savings delivered in the 
last three years is £70m, demonstrating the 
Group’s ongoing focus on efficiency and its 
ability to continue reducing the cost base. 
Despite weaker sales than we had forecast 
at the start of the year, inventory in the Retail 
business reduced by £24m, a year-on-year 
reduction of nearly 11%. The balance sheet 
remains very strong, with net debt excluding 
leases of £8.2m and a leverage ratio 
(including leases) just below our target range. 
Sustainability
We continue to make good progress on 
our ESG programme. Notable highlights 
include our ever-growing momentum within 
packaging – we removed 5.5 million items 
of plastic packaging and swapped 2 million 
items of non-recyclable plastic to recyclable, 
whilst we also launched new recycling 
initiatives in our Retail stores. We continued 
to strengthen the governance of our supply 
base, updating our Global sourcing policy 
and launching a new sustainability tool in 
partnership with EcoVadis, the global leader 
of business sustainability ratings. 
Our Scope 1 and 2 emissions are now 24% 
below our FY20 baseline in absolute terms 
but, relative to Group revenue, are 49% below 
FY20. We also made significant progress 
in calculating accurate data for our Scope 
3 emissions, working alongside industry 
experts, The Carbon Trust. This provides 
Halfords with a strong foundation on which 
to start building our Net Zero roadmap 
in FY25. 
Further details of our ESG Strategy, 
the progress we have made, and our 
focus areas for the mid-term can be 
read in our Annual Report and Accounts 
located on the corporate website, 
www.halfordscompany.com. 
Dividend and capital allocation
Our capital allocation priorities remain 
unchanged: 
1.	Maintaining a prudent balance sheet 
2.	Investment for growth 
3.	M&A, focused on Autocentres 
4.	Dividend covered by 1.5x-2.5x Underlying 
profit after tax 
5.	Surplus cash returned to shareholders 
We ended the period with net debt, excluding 
leases, of £8.2m (FY23: Net Debt £1.8m). The 
Net Debt: EBITDA ratio (including lease debt) 
was 1.7x (FY23: 1.9x), slightly below our target 
range of 1.8x pre-M&A or up to 2.3x post. 
We have extended our committed £180m 
Revolving Credit Facility (including £20m 
overdraft) to April 2028, with an additional 
one-year extension option that would take it 
to April 2029.
In line with the mid-term plan communicated 
at our Capital Markets Day in April 2023, we 
intend to increase capital expenditure in FY25 
to a range of £50-60m, assuming trading 
continues as expected. Approximately half 
of this will support ongoing maintenance of 
the business, c. 35% allocated to optimising 
projects with strong in-year returns, and 
approximately 15% invested in strategic 
initiatives such as Avayler and Project Fusion. 
Balancing our capital allocation priorities with 
the importance of the ordinary dividend to 
many of our investors, we have proposed 
a final dividend of 5 pence per share, which 
would result in a full year dividend of 8 pence. 
This would be a 20% reduction versus the 
prior year, reflecting lower profits and the 
application of our dividend policy described 
above. The final dividend would be paid on 
13 September 2024 with the corresponding 
ex-dividend date of 8 August 2024 and the 
record date of 9 August 2024. 
Graham Stapleton
Chief Executive Officer
17 July 2024
32
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CHIEF EXECUTIVE 
OFFICER’S STATEMENT

33
STRATEGIC 
REPORT
 halfords.annualreport2024.com

B2B Market opportunities
•	 Cars will increasingly be owned and operated by businesses, 
rather than consumers, meaning B2B relationships will 
be key. 
•	 National fleet owners prefer the benefits of contracting with a 
single provider with national coverage. 
•	 Commercial vehicle miles driven have rebounded after 
COVID-19 impacted changes to driving patterns. 
Our response
•	 Through the acquisitions of McConechy’s, Universal and 
Lodge, complementing the B2B relationships already 
established in the Autocentres business, we have developed 
a market-leading presence in the commercial tyre market. 
•	 Our national scale provides us with significant advantage to 
win large, national contracts. 
Our Motoring and Cycling products segments remain core, but we have a greater 
market opportunity in growing our existing motoring services business.
Retail Motoring
The sale of motoring products in Retail 
stores and online.
Market drivers
•	 Ageing UK car parc will lead to more 
cars within aftermarket segment 
and an expanding market for 
motoring products
•	 Increase in demand for electric 
vehicle products such as home 
charging solutions
•	 Product innovation
Motoring Servicing
The provision of motoring services in 
Retail stores, Autocentres garages or 
via mobile vans. 
Market drivers
•	 The ageing UK car parc means cars 
are requiring more visits to garages 
on an annual basis
•	 Increasing number of customers 
wanting ‘Do It For Me’ solutions 
•	 Increasing EV repairs and 
servicing work
•	 Prioritising convenience, services/ 
repairs done at places of work or 
car parks
Consumer Tyres
The fitting of vehicle tyres in 
Autocentres garages or via 
mobile vans.
Market drivers
•	 Miles driven
•	 Regular MOTs
•	 Tyre tread depth
•	 Heavier EVs likely to lead to quicker 
tyre degradation
Consumer Market opportunities
•	 Provide customers with a “one-stop shop” in which they can 
access all products and services they need from a single, 
trusted brand.
•	 No market-leader in a highly-fragmented marketplace.
•	 Very few competitors outside of dealerships able to offer EV 
servicing.
•	 Mobile services are a growing market segment, particularly 
the tyre fitting industry. 
Our response
•	 Progress long-term strategic opportunity to offer customers 
a “one-stop shop” offering for their driving needs. 
•	 Significant organic and acquisitive growth has established 
Halfords as the market leader in aftermarket car servicing, 
maintenance and repair. 
•	 Investment in training and equipment to ensure Halfords is a 
leader in aftermarket EV servicing. 
•	 Our Halfords Mobile Expert vans deliver elements of car 
fitting and servicing, such as battery replacement, tyres and 
diagnostic checks, direct to the customer at their home 
or workplace.
Data on market size and volume share is derived from third-party providers, as follows:  
Retail Motoring and Consumer Tyres: GfK; Motoring Servicing: DVSA (MOT data); Cycling: Bicycle Association.
34
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR 
MARKETPLACE

B2B Market opportunities
•	 The Government subsidised Cycle2Work 
scheme provides consumers with a much more 
affordable way to purchase a bike.
•	 E-mobility is driving the market with many 
businesses searching for lower-carbon 
means of transport and accessories to help 
run their businesses, particularly in urban 
locations, e.g. E-cargo bikes as a ‘last mile’ 
solution in ultra-low emissions zones such as 
central London.
Our response
•	 We are the market leader in the UK’s Cycle to 
Work scheme, supporting sales and introducing 
new customers to our brand.
•	 We are also proud to have working relationships 
with large brands across the UK to which we 
supply cycling accessories.
Cycling
The sale of bikes and cycling accessories and the provision of 
cycling services.
Market drivers
•	 Government investment in cycling infrastructure, accelerated 
during COVID-19, is a key part of getting more people into 
cycling, particularly in urban locations where safety is a 
serious concern. 
•	 The Government subsidy of bikes through Cycle to Work 
schemes enable discounted purchasing of bikes through 
salary sacrifice, giving consumers cheaper ways to cycle.
•	 The increase in ultra-low emission zones in cities and a 
general concern for climate change and environmental 
issues, is likely to drive people to opt for cycling as an 
alternative form of transport.
Consumer Market opportunities
•	 E-mobility is rapidly growing in importance to customers, offering a lower 
carbon mode of transport. Customer demand for E-Bikes is continuing to 
grow, now accounting for one in every five bikes sold. 
•	 Although most customer journeys begin online, customers are willing 
to travel greater distances to experience cycling products first-hand in 
a store. A targeted and joined-up approach to omnichannel provides 
customers with a leading proposition. 
Our response
•	 Our strong heritage and over 130 years of experience selling bikes means 
we are a market-leader in cycling products and services. 
•	 Halfords Group boasts the biggest and most popular cycle brands in 
the UK – Carrera and Apollo – which we continue to innovate. In total, 
approximately 80% of our bikes are own-brand, serving both children and 
adults at a wide range of price points, from affordable to high performance. 
•	 Our stores are conveniently located, and our online platform provides 
support and information to help customers choose the products and 
services they want. Many customers take advantage of our Click and 
Collect offer, placing orders online via our website and picking up from a 
designated store at a time which is convenient to them.
 
 halfords.annualreport2024.com
35
STRATEGIC 
REPORT

Our Key Macro trends
Value
Transition to Electric
Do It For Me
Description 
•	 The UK consumer continues to 
experience significant financial 
pressure, with high levels of inflation, 
low wage growth and higher interest 
rates. Customers today want the 
best combination of value, quality 
and service. 
Impact 
•	 With household budgets increasingly 
squeezed, consumers have lower than 
normal disposable incomes to spend 
on discretionary products and services. 
Our response 
•	 Our strategy for the business is as 
relevant as ever – a transition away from 
the traditional retail model towards a 
services and B2B-focussed business, 
delivering repeatable revenue streams 
that are less discretionary.
•	 We have supported customers by 
investing in price and promotions, 
consumer financing options and our 
Bike Xchange programme, whilst our 
market-leading Cycle2Work offer 
provides the most affordable way to 
purchase a bike.
Description 
•	 The UK is transitioning towards lower-
carbon forms of transportation, driven 
by increasing pressures to reduce the 
use of fossil fuels.
•	 As a result, all forms of electric mobility 
are becoming increasingly popular with 
many customers choosing to make 
the switch to electric vehicles (“EVs”), 
E-Bikes or E-Scooters. 
Impact 
•	 Significant growth in customer queries 
relating to electric forms of transport. 
•	 Greater demand for servicing of EVs, 
E-Bikes and E-Scooters. 
•	 Second-hand markets for electric 
products. 
Our response 
•	 We have invested heavily in colleague 
training and garage equipment, to 
ensure we can support customers with 
their need to service EVs, E-Bikes and 
E-Scooters.
•	 We also continue to explore ways 
to enhance our range of electric 
products and solutions, including EV 
charging, innovative new E-Bikes, and 
second-hand E-Bikes.
Description
•	 The increasing complexity of 
vehicles and bikes means that many 
customers do not have the time, desire 
or knowledge to carry out repairs 
and maintenance on their cars and 
bikes. Instead they are searching for 
convenient solutions.
Impact
•	 This trend has been seen for some 
time and is expected to continue, with 
increasing demand for services. 
Our response
•	 The strategy of the Group since 2018 
has been to accelerate the growth of 
the Services business, leaning in to this 
particular customer trend. 
•	 We have invested in colleague training 
and equipment to ensure we can 
maintain pace with customer demand. 
•	 We have improved our booking 
process, providing customers with 
times and locations for their service to 
be carried out in-store, in a garage or 
even on their driveway via our fleet of 
mobile vans.
Link to Principal Risks
•	 Value proposition
•	 Brand appeal and market share
Link to Principal Risks
•	 Climate change and electrification
•	 Culture/colleague engagement 
and skills
Link to Principal Risks
•	 Service quality
•	 Stakeholder support and confidence in 
strategy
•	 Sustainable business model
36
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR 
MARKETPLACE

Convenience
Changing UK Car Parc
Description
•	 Consumers’ lifestyles are getting busier, 
free time is becoming more valuable, 
and consumers expect retailers and 
service providers to fit around their 
routines with on-demand services and 
friction-free interactions as standard.
•	 Convenience to them is not just 
about speed but about making their 
lives easier, even if this comes at an 
increased price.
Impact
•	 Customers expect a seamless 
shopping experience that is hassle-free 
and time-efficient. They want choice, 
whether that is visiting a store, a garage, 
or having a product delivered to home. 
Our response
•	 Over the last few years, we have more 
than doubled the number of service 
locations, reducing customer drive time 
from 30 minutes to 20 minutes. 
•	 Our mobile van fleet has grown 
substantially over the past 24 months, 
giving customers an unprecedented 
level of convenience, bringing services 
to their driveway with same-day service 
options in some instances.
•	 Launch of dynamic pricing, enabling 
customers to make their own trade-off 
between price and convenience.
Description
•	 The age of the UK car parc is increasing 
from 7.9 years in 2019 to a forecast  
9.7 years in 2026.
Impact
•	 With the average age of cars increasing, 
they are likely to require more frequent 
visits to garages for servicing, 
maintenance and repair. 
•	 A higher proportion of cars will be 
greater than three years old, with most 
falling outside of dealer servicing 
packages. Customers are more likely to 
explore aftermarket servicing providers. 
Our response
•	 The strategy of the Group since 2018 
has been to accelerate the growth 
of the Motoring Services business. 
The growth in the number of garage 
locations and the creation of the 
mobile vans business has established 
Halfords as the market-leader in 
aftermarket servicing, maintenance  
and repair.
Link to Principal Risks
•	 Service quality
•	 Stakeholder support and confidence in 
strategy
•	 Sustainable business model
Link to Principal Risks
•	 Stakeholder support and confidence in 
strategy
•	 Sustainable business model
•	 Brand appeal and market share
 halfords.annualreport2024.com
37
STRATEGIC 
REPORT

Creating value and leading with our vision to be the super-specialists in 
motoring and cycling, trusted by the nation.
Our key resources and relationships
Colleagues: Training and accreditation, such 
as our 3-Gears training programme in Retail 
or our electric/hybrid vehicle maintenance 
training in Autocentres, ensure that 
consistent product knowledge and services 
capability reaches our customers across all 
locations.
Partners: Halfords is proud to work with 
suppliers, distributors and other industry 
partners to drive our business forward, 
supporting the sale of our products and 
services and enabling us to work with 
communities across the UK.
Brand strength: Halfords is the nation’s 
leading provider of motoring services and a 
trusted retailer for motorists and cyclists. We 
have a range of exclusive and highly-regarded 
brands, including Apollo, Carrera and 
Boardman in Cycling, as well as our Halfords 
Advanced ranges in Motoring.
Our infrastructure/assets: Our physical 
estate of Retail stores, garages and Mobile 
Expert vans, combined with a best-in-class 
digital platform and an efficient distribution 
network, provide customers with a 
convenient omnichannel offer.
Financial strength: A strong balance sheet 
and good cashflow generation provides 
the Group with the means to continue its 
investment for growth. 
Large and varied customer base: Halfords 
is one of the largest consumer businesses in 
the UK, offering products and services to over 
20 million people in FY24. With B2B revenue 
representing 29% of total Group revenue, we 
also have a significant number of business 
customers, from large fleet providers to large 
corporations operating the Cycle2Work 
scheme. Our Avayler software solution has 
also enabled us to attract global customers.
Data Capabilities: With over 140 million 
annual website visits, 45 million vehicle 
records checked per year, and over 10 million 
annual service jobs completed, we have 
access to valuable data and insights on 
customers and their vehicles. 
Our sustainable mindset: We have an 
established sustainability strategy with 
proven results.
Scale, capability and business intelligence
Motoring and 
Cycling Retail
Business 
Solutions
Motoring 
Services
Avayler Data 
Software
Motoring and 
Cycling Products
Products are at the core of our 
business and have been for over 
130 years, defining us as the UK’s 
leading retailer of motoring and 
cycling products. Whether in one of 
our stores or online, customers are 
able to find parts or products they 
want for their motoring or cycling 
needs from E-Bikes to socket sets, 
power washers to bicycle helmets. 
Our colleagues are true experts and 
can suggest suitable products for 
each customer situation.
Motoring and 
Cycling Services
Our services proposition 
complements our strong product 
business; helping to keep the UK 
moving whilst delivering unrivalled 
customer service. Operating from 
over 1,750 locations, Halfords 
has the national scale to serve 
customers at a time and location 
convenient to them. Cycling 
services and basic fitting and 
car checks are performed in 
Retail stores or via our fleet of 
Mobile Expert vans, whilst more 
complicated service, 
maintenance and 
repair jobs are 
completed in 
one of 639 
garages.
Solutions for 
Businesses
Significant growth in 
B2B channels means that it 
now accounts for 29% of Group 
revenue. These revenue streams 
are more predictable and more 
resilient to consumer sentiment 
changes, helping to create a 
stronger platform for the Group and 
leading to higher, more sustainable 
financial returns.
Avayler 
Software
For Halfords
Our internally-developed garage 
operating platform has greatly 
increased the operational 
efficiencies of our garages and 
mobile vans, whilst also driving an 
enhanced customer experience. 
Selling to third parties
The success of the Avayler 
software has enabled the Group 
to sell a packaged version to third- 
party garage and van operators. 
The Avayler technology automates 
and enhances service delivery 
across the board, achieving more 
sales and higher margins, increased 
operational efficiency and 
increased compliance.
38
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
BUSINESS 
MODEL

The value we create
Customers
Access to a market-leading services and shopping 
experience, meeting their motoring and cycling 
needs via the convenience of one Group website and 
our 1,750+ stores, garages and vans, with access 
to technical and expert advice from our 12,000+ 
colleagues. 
>20m
customers this year
Colleagues
Developing, rewarding and retaining our colleagues so 
that they are engaged to drive our growth ambitions. 72%
colleague  
engagement score
Investors
Generating returns for our shareholders through 
effective management of our financial resources and 
investment in high-returning opportunities. 
20 years
of annual dividend payments 
Suppliers 
Providing suppliers with market-leading access  
to the UK consumer.
Over 400
key suppliers in our  
value chain
The planet and our communities
Supporting communities in the UK and beyond, whilst 
working with suppliers in our value chain to reduce our 
impact on the environment and lead the transition to 
Net Zero. 
49%
reduction in 
Scope 1 and Scope 2 
emissions since FY20 
(tCO2e per £1m of 
revenue)
c. 27k
bikes recycled
 halfords.annualreport2024.com
39
STRATEGIC 
REPORT

Stakeholders that benefit  
from the value we create
Effective utilisation of our resources and relationships are an integral part of  
our plan to drive long-term sustainable growth. 
The views of all of our stakeholders are considered by the Board and Executive team on a regular basis.
Colleagues
Suppliers
Communities
Why it’s important to engage 
•	 Our colleagues are fundamental to 
the achievement of our customer 
experience ambitions and are 
the cornerstone of our services 
proposition. 
What matters to them? 
•	 Support and development 
•	 Career opportunities 
•	 Fair remuneration 
•	 An appropriate sustainability strategy 
How we engage 
•	 Promotion of the Group values 
•	 Listening: surveys and colleague 
groups 
•	 ‘3-Gears’ training programme 
•	 ‘Aspire’ store management 
development courses 
•	 Recognition and reward 
Outcomes of engagement
•	 Conducted our annual Colleague 
Engagement Survey to ensure every 
colleague has the chance to have their 
voice heard.
•	 We run weekly communications 
through team Huddles, a CEO blog and 
our intranet. 
•	 Colleague awards take place regularly 
with the ability for any colleague to 
be nominated for living the Halfords 
values and role modelling behaviours 
that positively impact colleagues and 
our customers.
Why it’s important to engage 
•	 Engaging with our supply chain 
effectively ensures the security of 
supply and speed to market. Our brand 
relies heavily on the high standards 
of our carefully selected suppliers in 
order for us to deliver market-leading 
products and services.
What matters to them? 
•	 A trusted distributor in the UK and ROI
•	 Fair payment terms and pricing 
•	 Responsible sourcing practices
How we engage 
•	 Far East trading office developing 
mutually beneficial relationships. 
•	 Organising logistics, driving efficiencies 
and improving environmental 
management.
•	 Supplier conferences.
Outcomes of engagement
•	 Meetings with our top strategic 
suppliers to understand their 
sustainability journey.
•	 Increased data and transparency from 
suppliers via the EcoVadis platform, 
supporting our ESG strategy, e.g. 
primary carbon data and human rights.
Why it’s important to engage 
•	 Engaging with communities is the right 
thing to do and ensures continued 
viability of the business in the long-
term. We aim to contribute positively to 
the communities in which we operate. 
What matters to them? 
•	 Environmentally friendly practices 
•	 Charitable giving
How we engage 
•	 Charity & Community initiatives 
•	 Media channels 
•	 Recycling initiatives
•	 Net Zero commitment 
Outcomes of engagement 
•	 We continue to support Mind along with 
its sister charities SAMH (Scotland) and 
Inspire (Ireland) as our Group charity 
partner, highlighting the importance of 
mental wellbeing to our colleagues. 
•	 Continued partnership with Drake Hall 
prison, where we run a cycle training 
academy for women prisoners. 
•	 Raised awareness among female 
students at technical colleges in 
the UK by showcasing the diverse 
and engaging work that our female 
colleagues perform in their roles. 
Link to Principal Risks
•	 Stakeholder support 
•	 Regulatory and compliance
•	 Service quality 
•	 Culture/colleague engagement 
and skills
Link to Principal Risks
•	 Stakeholder support 
•	 Sustainable business model 
•	 Disruption to end-to-end supply chain 
•	 Climate change and electrification
Link to Principal Risks 
•	 Stakeholder support
•	 Brand appeal and market share 
•	 Cyber security and IT infrastructure
40
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ENGAGEMENT 
WITH STAKEHOLDERS

Stakeholders that 
influence what we do
Investors
Customers
Government
Why it’s important to engage 
•	 As a publicly listed company, we 
need to provide fair, balanced and 
understandable information to instil 
trust and confidence and allow 
informed investment decisions to 
be made. 
What matters to them? 
•	 Value creation opportunities and long-
term sustainable growth
•	 Appropriate sustainability practices 
How we engage 
•	 Annual Report and Accounts
•	 RNS announcements 
•	 Annual General Meeting 
•	 Investor presentations 
•	 Corporate website 
•	 One-on-one meetings 
•	 Capital Markets Day
Outcomes of engagement 
•	 Full and half-year results and strategy 
presentations to shareholders.
•	 Regular meetings with brokers, analysts 
and shareholders throughout the year 
via the Chair, CEO, CFO and Investor 
Relations team. 
•	 Corporate website kept up to date with 
annual refresh of all information and 
more regular minor amendments. 
•	 Ensuring transparent reporting on  
ESG-related performance. 
•	 Capital Markets Day held in April 2023.
Why it’s important to engage 
•	 Understanding our customers’ needs 
and behaviours allows us to deliver 
relevant products and services, retain 
customers and attract new ones. It also 
identifies opportunities for business 
growth. 
What matters to them? 
•	 A great product or service, for a 
fair price 
How we engage 
•	 Satisfaction surveys 
•	 Rewards 
•	 Commercial website 
•	 Social media engagement 
Outcomes of engagement 
•	 Regular communications through digital 
channels (e.g. email, social media) to talk 
to our customers. 
•	 Regular customer ‘listening groups’ 
allowing more detailed feedback. 
•	 Net Promoter Score surveys daily in 
stores and garages giving quantifiable 
feedback. 
•	 Commercial website updated every 
week, enhancing the customer journey, 
providing the latest information, 
advice and guidance from our expert 
colleagues. 
•	 The Halfords Blog gives customers 
more in-depth reports on topics such 
as electric mobility, ways to save money, 
competitions and essential information 
for motorists and cyclists. 
Why it’s important to engage 
•	 Policies and regulatory changes may 
provide opportunities and pose risk to 
our operations. Working closely with the 
Government ensures that our products 
and services evolve appropriately. 
Link to Our Risks 
•	 Regulatory and compliance
Media
Why it’s important to engage 
•	 We need strong multi-channel exposure 
to connect with customers and our 
wider stakeholder audience. Engaging 
with the media ensures transparency 
and accuracy of information on the 
business. 
Link to Our Risks 
•	 Stakeholder support 
•	 Brand appeal and market share 
•	 Regulatory and compliance
Link to Principal Risks 
•	 Stakeholder support 
•	 Brand appeal and market share 
•	 Sustainable business model
•	 Regulatory and compliance
Link to Principal Risks 
•	 Stakeholder support 
•	 Value proposition 
•	 Brand appeal and market share 
•	 Service quality
Read more on page 110
 halfords.annualreport2024.com
41
STRATEGIC 
REPORT

Engaging with stakeholders delivers better outcomes  
for our business, fundamental to our long-term success.
Board Information
Keeping the  
Board Informed
•	 Leadership and management 
receive training on Directors’ duties 
to ensure awareness of the Board’s 
responsibilities.
•	 Board minutes include an explanation 
of Section 172(1) factors and relevant 
information relating to them.
•	 Our Board continually engages with 
stakeholders.
Read more on pages 102 and 150
Strategic Considerations 
Section 172(1) and the  
Company’s Strategy
•	 Section 172(1) factors considered in 
the Board’s discussions on strategy.
•	 Chair ensures decision-making 
is sufficiently informed by 
Section 172(1) factors.
Read more on pages 48 and 117
Board Decision Making
Outcomes of 
Considering  
Section 172(1)
•	 Outcomes of decisions 
assessed and further 
engagement and dialogue.
•	 Actions taken as a result of 
Board engagement.
•	 Actions align with our culture.
Read more on page 106
Our Approach
As referenced in the Corporate 
Governance Report on page 102, this 
section describes how the Directors 
consider the matters set out in Section 
172(1)(a) to (f) of the Companies Act 
2006 (the “Act”).
In July 2019, the UK Corporate 
Governance Code reinforced the 
importance of Section 172(1) of the 
Act which requires the Directors to 
consider (amongst other matters) the 
interests of all stakeholders, including:
•	 The likely consequences of 
decisions in the long-term.
•	 The interests of the Company’s 
workforce.
•	 The need to foster relationships with 
suppliers, customers and others.
•	 The impact of operations on the 
community.
•	 The high standards of business 
conduct.
•	 The need to act fairly between 
members of the Company.
42
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
SECTION 172(1)  
STATEMENT

Health and Safety | Visible Safety Leadership
Visible Safety Leadership (“VSL”) is an initiative that was introduced throughout the Group in FY24. 
VSL’s primary purpose is to enable members of the Management 
teams to visibly demonstrate and commit to ensuring that all of 
our colleagues are operating in both a safe and healthy manner. 
At Halfords we believe our management to be the most 
significant influencer on the behaviour of our people, and it’s 
the ability of management to influence that behaviour which 
consequently determines whether or not accidents or incidents 
shall occur. 
VSL enables our colleagues to ‘see’ and ‘feel’ the importance 
of safety through regular engagement, and via practical ‘on the 
job’ discussions with our Management teams. Management, 
regardless of their function, view operations through fresh eyes, 
and are able to proactively:
•	 experience first-hand tasks our colleagues undertake on a 
daily basis.
•	 discuss safety concerns with colleagues in an open 
environment.
•	 agree and support with safer and more efficient solutions.
•	 empower colleagues to operate without jeopardising their 
personal safety.
•	 reaffirm and visibly demonstrate an interest that ‘We Care’.
VSL is also perceived as an excellent opportunity for our 
management teams to identify safe acts, and express praise for 
good practices observed. 
“The aim of the discussion  
is to ultimately PREVENT  
tomorrow’s injury.”
CASE STUDY
 halfords.annualreport2024.com
43
STRATEGIC 
REPORT

Autocentre Supplier Conference
Mentoring Scheme
Apprenticeships
In FY24, we ran an Autocentre supplier 
Conference for our key supplier 
Partners. 
Section 172(1) Consideration
Suppliers 
The objective of the conference was to 
strengthen and reinforce our supplier 
relationships. Suppliers are critical to 
the success of our business through 
their support and service levels, and 
we recognise that a fully optimised 
supply chain and sourcing strategy 
will enable competitive advantage, 
whilst ensuring best-in-class service 
levels for our customers. The theme 
for the day was ‘Partnering for Growth’ 
to build and capitalise on the growth 
trajectory that Halfords has had over 
the previous year. 
Suppliers are classified in our business 
as ‘preferred, approved or listed’, 
depending on strict criteria around 
commercial competitiveness, service 
levels and sustainability credentials. 
The conference was attended by the 
senior management of our preferred 
suppliers, who were mostly global 
in nature. The event was also live 
streamed to our suppliers in the Far 
East to enable global participation in 
the event.
We took the opportunity to update on 
our Group Strategy, investments that 
we have made and continue to make 
in the business, alongside several 
collaboration opportunities that we 
believe our businesses can optimise 
going forward. The messages were 
delivered by several members of the 
Halfords Executive team, to fully show 
the importance we place on this area.
As a result of the conference, we 
believe our suppliers now have a 
better understanding of our strategy, 
the importance of their role in our 
organisation and most importantly 
how we can both work together 
collaboratively for the benefit of 
Halfords’ customers.
FY24 saw the trial of a mentorship 
programme to provide a 
structured and organised 
initiative to facilitate the pairing 
of experienced colleagues with 
mentees to provide guidance, 
support, and knowledge transfer. 
Section 172(1) 
Consideration
Colleagues 
We set out to create success by 
doing what is needed and what 
works for the mentee. 
The mentorship pairings promote 
discussion on a colleague’s 
aims, ambitions, and challenges 
for their personal and career 
development. The advice and 
insights flowing from mentor 
to mentee are instrumental to 
personal growth and career 
aspirations. Our mentors listen, 
but also offer their opinions and 
valuable insight into the topics 
discussed. The positive outcome 
promotes colleagues to focus on 
how they can best grow their own 
personal brand here at Halfords 
and for their future career 
opportunities. Another, positive 
outcome is that the programme 
helps to remind mentees of their 
own strengths and provides 
them with confidence to pursue 
relevant activities to assist in 
expanding their qualifications. The 
scheme injects confidence into 
both mentor and mentee. The 
approach is flexible with mentees 
being encouraged to protect time 
in their diary to focus on their 
personal and career growth. 
Overall, the scheme connects 
our colleagues through 
communication and collaboration, 
leading to positive and rewarding 
outcomes for both mentor and 
mentee.
Being able to offer apprenticeships provides Halfords 
with a great route to attract and retain colleagues to our 
one Halfords family, whatever their age.
Section 172(1) Consideration
Colleagues 
Apprenticeships offer colleagues and potential colleagues 
the opportunity to gain hands-on experience in a specific 
job role whilst developing their expertise in that area or 
subject and gaining a vocational qualification. We recognise 
the benefits that apprenticeships bring both for colleagues 
and for us as an employer, and actively offer two types:
•	 Automotive Apprenticeships are now offered in Level 2 
(“L2”) Autocare and Level 3 (“L3”) Light Vehicle Service 
& Repair, with colleagues being offered the opportunity 
to progress to a L3 if they succeed at L2. Historically we 
have predominantly offered L3 apprenticeships due to 
the nature of the work our garages complete, however, 
with the acquisition of National we have been able to 
offer more colleagues L2 apprenticeships, providing us 
with a greater potential colleague reach. In addition, an 
apprenticeship provides job security for a minimum of 
two to three years; role progression to MOT Tester within 
four years (L3); and a career for life with highly transferable 
experience.
•	 Career/development apprenticeships support 
colleagues with career development. In FY24 this 
increased to 25 colleagues.
Communities  
We work with the Palmer Foundation which provides 
additional pastoral and financial support to young people 
from disadvantaged backgrounds. This enables them to 
enter the Automotive industry through apprenticeships. 
Through this partnership, we have also been able to 
increase the number of females coming into the business 
through our apprenticeship programme.
Suppliers 
We work with a number of different training providers 
which include local colleges and Remit Training. This 
enables us to offer alternative learning options such as; 
block release; day release; and on-site delivery. 
We work with providers that have an Ofsted rating of 
two or above and we regularly review the colleges and 
providers to ensure the quality of programmes meets our 
required standards. 
Media 
In June 2023, our annual Autocentre Apprentice of the 
Year competition was won by Holly Darvell. Holly has 
been an excellent role model for female apprentices in 
the automotive industry, getting involved in numerous 
media campaigns and events such as the National 
Apprenticeship Week visit to the Houses of Parliament. 
We were then delighted that Holly won the IMI Apprentice 
of the Year award in March 2024. This was a fantastic 
achievement for Holly and for her Halfords’ colleagues.
44
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
SECTION 172(1)  
STATEMENT

Shareholder KPIs
Underlying Profit Before Tax
Underlying Earnings Per Share
£99.5m
£89.8m
£46.8m
£43.1m
FY24
FY23
FY22
FY21
Definition 
Profit before income tax and 
non-underlying items, for Continuing 
Operations, as shown in the Group 
Income statement.
Reason 
This measurement of profitability provides 
stakeholders with a view of underlying 
trends and performance, and the delivery 
of the Group strategy.
41.7p
35.5p
17.6p
15.1p
FY24
FY23
FY22
FY21
Definition
Profit after income tax and before 
non-underlying items, as shown in the 
Group Income Statement, divided by the 
number of shares in issue. Note that FY23 
and FY24 are from continuing operations.
Reason
Basic EPS is a measure of underlying 
profit generation relative to the shares 
in issue and as such, measures delivery 
against our strategic objectives.
FY24 Performance
Underlying profit before tax from continuing operations of 
£43.1m was -7.9% lower than the prior period. This was a resilient 
performance against the backdrop of very challenging markets, 
weak consumer confidence, and high cost inflation. 
FY24 Performance
Underlying Basic EPS, from continuing operations, declined by 
-14.2% in the period, reflecting lower profit before tax and an 
increase in the effective tax rate, which was driven by the statutory 
increase in the headline corporate tax rate from 19% to 25%. 
Link to Remuneration
Bonus
Link to Remuneration
Performance Share Plan
Underlying EBITDA
Dividend per Share
£233.0m
£207.1m
£182.5m
£183.4m
FY24
FY23
FY22
FY21
Definition
Underlying EBITDA adds back Interest, 
Depreciation and Amortisation to 
Underlying Profit Before Tax. Shown for 
Continuing Operations in FY23 and FY24.
Reason
The Board considers this measurement of 
profitability to be an important alternative 
to underlying profit before tax and one 
which has a closer resemblance to cash 
generation.
5.0p
9.0p
10.0p
8.0p
FY24
FY23
FY22
FY21
Definition
Cash returned to shareholders as a return 
on their investment in the Company, 
presented on a pence per share basis.
Reason 
Our dividend policy is to pay an ordinary 
dividend that is covered by 1.5x to 2.5x 
Underlying Profit after Tax. Should surplus 
cash remain in the business that we feel 
we cannot deploy with good rates of 
return, we will return this to shareholders 
in the most appropriate way.
FY24 Performance
Underlying EBITDA from continuing operations increased by 
0.5% in FY24, reflecting similar factors that impacted PBT 
described above. 
FY24 Performance
In line with lower profit compared to the prior period, and the 
application of our dividend policy, the Board recommends a 
dividend per share of 8 pence, down from 10 pence in FY23.
 halfords.annualreport2024.com
45
STRATEGIC 
REPORT
OUR KEY PERFORMANCE 
INDICATORS

Shareholder KPIs
Free Cash Flow
Net Debt to Underlying EBITDA Ratio
133.2m
(£14.9m)
£2.7m
£29.4m
FY24
FY23
FY22
FY21
Definition
Adjusted Operating Cash Flow less capital 
expenditure, net finance costs, taxation, 
exchange movement, arrangement fees 
on loans, and lease payments. Note that 
FY23 and FY24 are from continuing 
operations. 
Reason
An important metric for shareholder value.
1.2x
1.7x
1.9x
1.7x
FY24
FY23
FY22
FY21
Definition
Represented by the ratio of Net Debt to 
Underlying EBITDA (including lease debt). 
Note that FY23 and FY24 underlying 
EBITDA is from continuing operations.
Reason
We are expecting to operate within a 
range of 1.8x to 2.3x, with the latter 
allowing for appropriate M&A. This ratio 
measures the Group’s financial leverage 
relative to the targeted range.
FY24 Performance
Free Cash Flow from continuing operations was £29.4m, a 
significant improvement on the prior period. Good working 
capital management, including lower inventory levels in the Retail 
business, contributed to this performance. 
FY24 Performance
The ratio has improved significantly in FY24 due to lower lease 
debt and at the period end was below the targeted range. 
Like-for-Like Sales
Glossary of Alternative Performance Measures
Definition
Revenue from continuing operations that have been trading as 
part of the Group for at least a year (but excluding prior year sales 
of stores and Autocentres closed during the period) at constant 
foreign exchange rates.
Reason
Like-for-like sales is a widely used indicator of a retailer’s trading 
performance, and is a comparable measure of our year-on-year 
sales performance.
FY24
FY23 
Halfords Group
+5.0%
+2.4%
Retail
+2.2%
-1.8%
Motoring
+4.9%
+4.0%
Cycling
-2.8%
-10.9%
Autocentres
+10.7%
+15.4%
In the reporting of financial information, the Directors have 
adopted various Alternative Performance Measures (“APMs”), 
previously termed as “Non-GAAP measures”. APMs should be 
considered in addition to IFRS measurements, of which some are 
shown on page 225. The Directors believe that these APMs assist 
in providing useful information on the underlying performance 
of the Group, enhance the comparability of information between 
reporting periods, and are used internally by the Directors to 
measure the Group’s performance.
FY24 Performance
Like-for-like growth was strong in FY24, with Autocentres again 
posting double-digit growth. 
46
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR KEY PERFORMANCE 
INDICATORS

Operational KPIs
Service-related Sales Growth
Group Colleague Engagement
£370m
£531m
£748m
£858m
FY24
FY23
FY22
FY21
Definition
Service-related Group sales is the income 
derived from the fitting or repair services 
themselves along with the associated 
product sold within the same transaction. 
From continuing operations. 
Reason
A core part of the Group’s strategy is to 
grow service-related sales faster than 
total Group sales.
75%
72%
FY24
FY23
FY22
FY21
Definition
The proportion of Group colleagues who 
respond positively to specific questions in 
the annual Colleague Engagement Survey.
Reason
High colleague engagement is critical 
to delivering the Group’s strategy, whilst 
also being the right thing to do for a key 
stakeholder.
FY24 Performance
In line with the Group’s strategy, Service-related sales continued 
to grow strongly in FY24, supported by the annualisation of the 
Lodge acquisition. Services now represent 51% of Group revenue.
FY24 Performance
The colleague engagement score was down three percentage 
points versus the prior period. Though disappointing, the score 
remains high versus relevant benchmarks. 
Link to Remuneration
Bonus and Performance Share Plan
Link to Remuneration
Bonus
Customer Net Promoter Score (“NPS”)
Read more on page 68 and 136
60.1
62.3
68.4
64.8
65.5
FY24
FY23
FY22
FY21
FY20
Definition 
In line with industry measures and 
calculated using customer surveys 
completed in several channels 
across the business. The basis of 
the measure changed from FY23 
onwards, reflecting a more balanced 
survey across the various Group 
channels.
Reason 
The Customer NPS score is a key 
measure of how our strategy is 
delivering for customers and is 
important for future growth.
FY24 Performance
Our Group NPS score improved by 0.7 points in the period, 
reflecting a strong performance in our Retail business.
Link to Remuneration
Bonus
 halfords.annualreport2024.com
47
STRATEGIC 
REPORT

Inspire
Inspire our customers with a 
differentiated and super-specialist offer.
Our Focus
•	 Be known as a super-specialist, by enhancing our product range 
and training our colleagues.
•	 Lead and differentiate our markets with customer-led innovation, 
utilising deep customer insight and working with suppliers to create 
and market innovative products that are exclusive to Halfords. 
•	 Improve our customer shopping journey online and in-store by 
continuing to optimise the Group’s web platform and the full 
omnichannel journey, whilst focussing on personalisation by 
leveraging our Group-wide single customer view. Improving the  
in-store experience by providing a more experiential, inspirational 
and service-led environment.
Progress made in FY24
•	 Significant extension of our Car Parts offer. 
•	 Further product innovation in both Bikes and Motoring products.
•	 Strong performance in Tredz, our Performance Cycling business.
•	 Our Fusion trial towns generated excellent financial results, 
encouraging us to roll-out this concept further.
Priorities for the next 12 months
•	 Project Fusion: investing in at least 25 towns, with significant 
upgrades to Retail car parks and Autocentres garages. 
•	 Relaying the motoring space in up to 100 Retail stores.
Link to Principal Risks
•	 Value proposition 
•	 Culture/colleague engagement and skills 
•	 Brand appeal and market share 
•	 Climate change and electrification
Our resilient performance in FY24 
is evidence that our strategy to 
accelerate growth in Motoring, 
Services and B2B is working. 
Graham Stapleton
Chief Executive Officer
Read more on KPIs on page 45
Read more on page 28
48
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR 
STRATEGY

Support
Support our customers through an integrated, unique 
and more convenient services offer.
Lifetime
Enable a lifetime of 
motoring and cycling.
Our Focus
•	 Offering customers access to our products and services via a unique combination of 
stores, garages and mobile vans, complemented by a strong online proposition. 
•	 Having an integrated services proposition across the Group, with one Group website and 
seamless referral of customers from stores and vans to Autocentres garages.
•	 Further roll-out of new garages to reduce average drive time even further. 
•	 Grow our B2B channels, particularly our Commercial Fleet Services business.
•	 Grow our Avayler platform to drive opportunities with Automotive service providers around 
the world.
Progress made in FY24
•	 Very strong growth in our Commercial Fleet Services business, with the acquisition of 
Lodge providing national coverage and attracting new customers. 
•	 Better utilisation in garages, driving demand to under-utilised garages and reducing labour 
turnover.
•	 Improved customer proposition for tyre fitting, with more affordable options, greater 
financing choices, and better convenience through same day fitting. 
•	 Dynamic pricing launched for MOT and Tyre bookings, giving customers a choice on 
quickest, nearest and best value. 
•	 Launched a new Cycle2Work web portal for small and medium sized customers.
•	 Avayler completed a 15 year commercial agreement with Bridgestone, which included 
Bridgestone taking a 5% stake in Avayler.
Priorities for the next 12 months
•	 Continue to grow the Commercial Fleet Services business, leveraging its national scale  
to win new contracts.
•	 Leverage unique platform to improve consumer garage operating model.
•	 Invest in leadership capability and garage apprentices, with up to 150 new apprentices 
anticipated in FY25.
•	 Avayler will focus on operationalising the Bridgestone contract whilst developing the  
order pipeline. 
Our Focus
•	 More actively drive customer loyalty 
and retention by leveraging our CRM 
programme and Halfords Motoring Club, 
providing compelling reasons for customers 
to return to our brand, optimising lifetime 
value and advocacy.
•	 Put our customer at the forefront of 
decision-making.
Progress Made in FY24
•	 Signed up 3.4 million members to our 
Halfords Motoring Club, significantly ahead 
of our target and double that of last year.
•	 The mix of premium members increased 
to 8% of total membership, supported by 
the recent launch of premium till sign-up 
capability in our Retail stores.
•	 NPS score of our Halfords Motoring Club 
members was 71.2 points, higher than  
non-members.
•	 Cross-shop of our members was four times 
higher than non-members. 39% of MOTs 
completed in Autocentres came through 
the Halfords Motoring Club.
Priorities for the next 12 months
•	 Grow the Halfords Motoring Club in 
National and focus incentives on tyres.
•	 Build on partnership proposition to support 
with acquisition and retention of members.
Link to our KPIs
•	 Services as a percentage of  
Group revenue
•	 LFL sales
•	 Customer net promoter score
Link to Principal Risks
•	 Service quality
•	 Culture/colleague engagement and skills
•	 Brand appeal and market share
•	 Stakeholder support
Link to our KPIs
•	 Customer Net 
Promoter Score
Link to Principal 
Risks
•	 Stakeholder support
•	 Service quality
•	 Brand appeal and 
market share
 halfords.annualreport2024.com
49
STRATEGIC 
REPORT

Progress made
•	 We extended our motoring offer with a 
major launch of a new specialist Car Parts 
proposition. Our entry into this £1bn 
market has driven a doubling of revenue, 
with customers responding positively to 
our competitive pricing; a step change in 
convenience with a new ‘Click and Collect’ 
in 60 minutes offer; and adding the 4th ‘B’, 
Brakes, to our 3Bs proposition. 
•	 We continued to bring new and innovative 
products to our Retail customers. These 
include the market leading Nextbase IQ 
dashcams and a huge range change 
in our own brand car seats, aimed at 
providing better choice and innovation, 
with sustainability front and centre, via 
the utilisation of recycled fabrics. We 
also innovated across our cycling range, 
for example, the new Boardman SLR 8.9 
men’s road bike combines a best-in-
class specification with a market leading 
price point. 
•	 With growing brand awareness, an 
excellent trust pilot rating, and market 
leading finance options, our Tredz business 
is going from strength to strength. Tredz is 
also a key contributor to our B2B revenue 
through Cycle2Work, and in total delivered 
strong like-for-like growth.
•	 This year, we have seen excellent results 
from our two Project Fusion towns – 
Colchester and Halifax – where the biggest 
shift in performance has been across 
our Garage services. This includes our 
physical garages, and the motoring service 
areas of our Retail car parks where we fit 
3Bs and refer customers across to our 
garages. These results have given us the 
confidence to accelerate investment in our 
Fusion programme in FY25.
Priorities for the next 12 months
•	 Roll-out of the Motoring services elements 
of Project Fusion. We have identified up 
to 25 towns across the UK for Fusion 
investment in FY25. We will invest 
approximately £5m of capex to enable 
major changes to our operating model in 
both the garages and Retail car park.
•	 We will invest in the physical layout of our 
Retail stores to deliver an improved journey 
for customers shopping for Motoring 
products. We anticipate investing in up 
to 100 retail stores, which we expect to 
provide a better shopping experience for 
our customers.
Inspire
our customers with a differentiated and 
super-specialist offer.
50
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR 
STRATEGY

Support
our customers through an integrated, unique  
and more convenient services offer.
Progress made
•	 The Commercial Fleet Services business 
continued to attract new customers with 
a strong pipeline of contracts. We are 
already working with the likes of DHL, DPD, 
Evri, and Yodel, alongside some substantial 
local government contracts.
•	 Launch of our new Cycle2Work portal 
for SME businesses, making it easier to 
sign up to participate in our Cycle2Work 
scheme. As a result we have significantly 
grown the total volume of Cycle2Work 
clients versus the prior year. 
•	 Entered into a 15-year commercial 
partnership with Bridgestone to implement 
our Avayler technology across the US, 
where Bridgestone has 2,000 consumer 
garages and a substantial fleet of mobile 
vans. In addition, demonstrating their 
confidence in our business, Bridgestone 
have also acquired a 5% stake in Avayler 
for $3m. This presents an incredible 
growth opportunity for Avayler, with 
significant scope to develop further 
over time. 
•	 Delivered improved utilisation in 
Autocentres, by reducing labour turnover 
and driving demand into those areas where 
we have the capacity available to service 
it. The ongoing focus here means we 
have seen estate-wide utilisation improve, 
increasing 9 percentage points in FY24. 
•	 The introduction of dynamic pricing not 
only helps customers to see their quickest, 
nearest, and best value options across 
our garage network, it also helps us 
significantly improve margin per worked 
hour. This is a consequence of being 
able to push demand where we need it 
most, improving efficiency, driving better 
utilisation, and higher profit. 
•	 In Consumer Tyres, we focussed on two 
key areas to drive share growth. The first 
is value for money. We have improved our 
own brand budget tyre range and have 
made our tyres more affordable with 
initiatives such as our “never beaten on 
price” promise, combined with our market-
leading range of financial services offers 
including “buy now pay later”. Combined, 
these initiatives have seen our ‘Value 
for Money’ score improve by 5.2 points 
in FY24. The second is convenience. 
Here, our focus is on same day fitting of 
tyres across National, where we have 
seen strong sales growth in FY24, with 
customers rating this proposition highly. 
Finally, for the ultimate convenience, our 
Halfords Mobile experts come to you with 
an industry leading 4.7 trust pilot rating.
•	 Tyre supply chain operations restructured 
and outsourced to Bond International. 
Delivering daily to garages, driving 
increased convenience and facilitating our 
customer proposition of same-day tyres, 
bookable online. 
Priorities for the next 12 months
•	 We will continue to invest in growing the 
Commercial Fleet Services business, 
leveraging its national scale to develop its 
pipeline and win new contracts.
•	 We will drive profitability improvements 
through several initiatives:
•	 Further cost savings across the Group, 
in particular by lowering our cost of 
goods. 
•	 Completing transition of tyre supply 
chain operation to Bond International.
•	 Improving leadership capability.
•	 Improving consumer garage 
operating model.
•	 We will continue to invest in the garage 
apprenticeship scheme, with up to 150 
new joiners anticipated. Typically, our 
apprenticeship schemes attract a higher 
proportion of females than the industry 
average. This is an important way for us to 
achieve greater diversity for Halfords and 
for the automotive servicing industry. 
•	 Our Avayler software business will focus 
on fully implementing and running the 
Bridgestone contract, whilst it seeks to 
continue developing its pipeline of new 
clients. 
 halfords.annualreport2024.com
51
STRATEGIC 
REPORT

Lifetime
Enable a Lifetime of motoring and cycling.
Progress made
•	 Our Halfords Motoring Club is the key 
component of our Lifetime strategy. After 
a very strong first year, the club continued 
to grow in FY24, the benefits clearly 
resonating with customers looking for 
value in a cost-of-living crisis. 
•	 Now with over 3.4 million members, we 
have significantly exceeded our sign-up 
targets for this financial year. And we 
continued to see growth in the number of 
members new to the Halfords Brand. 
•	 The mix of premium members is a critical 
measure for us, driving cross shop, 
recurring revenue, and lifetime value. 
This has increased to 8%, supported by 
the recent launch of premium till sign up 
capability in our Retail stores. 
•	 We are delighted that the club is delivering 
on its goal to change customer retention 
behaviours in Retail, as demonstrated by 
the significant increases in both frequency 
and breadth of shop. 
•	 As we showed at the CMD, the club is an 
acquisition tool which drives customers 
from our Retail stores across to our 
garages. The proportion of MOTs in our 
consumer garages coming from Loyalty 
members is just under 40%. 
•	 Overall, the club remains a core part of our 
strategic plans, over the mid- to long-
term, with vehicle and vehicle health data 
absolutely central to our Lifetime strategy. 
Our goal is to drive stronger data analytics, 
predictive modelling, monetisation, and 
even more profitable utilisation, alongside a 
highly personalised customer experience.
Priorities for the next 12 months
•	 Leverage the Halfords Motoring Club to 
reduce marketing acquisition costs across 
key categories.
•	 Grow the Halfords Motoring Club in 
National and offer our members greater 
incentives to shop tyres.
•	 Build on our partnership proposition within 
the Halfords Motoring Club, selecting key 
partners to support the acquisition and 
retention of members.
•	 Develop new benefits for Halfords 
Motoring Club members.
52
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR 
STRATEGY

STRATEGIC 
REPORT
53
 halfords.annualreport2024.com

274 
EV-ready  
garages
We continued to make good progress on our ESG strategy this year, focussing on 
our people and our planet to work towards a more sustainable future.
6% 
Median  
Pay Gap,  
well below 
national average
49% 
reduction in Scope 
1 and 2 emissions 
vs FY20 baseline 
(relative to 
revenue)
41% 
reduction in 
consumer-facing 
virgin plastic vs 
FY20
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54
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ESG 
INTRODUCTION

CASE STUDY
Introducing the new Chair of the ESG Committee 
This is my first annual report as the Chair of 
the ESG Committee and as a Non-Executive 
Director of Halfords, having joined the Board 
in June 2023. I wish to thank my predecessor, 
Helen Jones, for her commitment to ESG at 
Halfords and for the progress that has been 
made in her years as Chair. 
We have continued to make good progress 
on our ESG programme, most notably in 
progressing our Net Zero plan and in our 
contributions to the circular economy.  
That said, there is so much more we want to 
achieve and I look forward to contributing to 
the Halfords journey. 
“I am delighted to be the new Chair of the 
ESG Committee at Halfords and I look forward 
to overseeing continued progress in the 
years ahead.”
Tanvi Gokhale
Chair of the ESG Committee
We are committed to making sure good governance is  
maintained throughout the delivery of our ESG strategy.
Read more on page 124 and 125
Health and Safety Committee
Our Group sub-committee is responsible for co-creating and 
agreeing policy, implementation framework and standards 
as well as monitoring performance, reviewing any remedial 
action and sharing good practice and lessons learned from 
across the Group.
ESG Committee
Responsible for the ongoing delivery against targets 
set for the four priority areas.
ESG business leaders
Ensure information is shared and monitored at 
a business level.
The Board
Overall responsibility for the implementation and 
success of the ESG strategy.
 halfords.annualreport2024.com
55
STRATEGIC 
REPORT

Overview
We have continued to make good progress on our ESG strategy and in particular on our key priority areas. By focussing on the areas on which 
we can have the biggest impact, we will continue to maintain a sustainable business that delivers for all our stakeholders.
Electrification
Net Zero Commitment
Our Focus
•	 Lead the market in Electric Servicing as the UK shifts towards more 
sustainable mobility options, specifically electric vehicles (“EVs”), 
E-bikes and E-scooters.
•	 Providing industry-leading training to our colleagues and invest in 
equipment to better support customers as they make the switch to 
electric.
•	 Broadening our range of E-mobility services and products, e.g. 
E-bikes/E-scooters, making the transition to electric travel easier.
•	 Investing in education and community engagement programmes to 
help and support consumers to make climate-smart choices.
•	 Raise Government awareness on the investment required to 
accelerate the transition to electric vehicles and other electric 
transport options.
Progress in FY24
•	 Investment in equipment and colleague training to ensure we have a 
sufficient number of garages capable of providing EV servicing. Due 
in part to colleague attrition, the number of EV-trained colleagues 
reduced by 14% to 414, whilst the number of EV-ready garages 
was broadly flat, at 274. Our historically significant investment in EV 
servicing means that Halfords is very well positioned to lead the 
market, but the pace of change in the UK vehicle market has slowed 
this year. 
•	 Worked on a proposition to introduce EV servicing capability in 
Halfords Mobile Expert vans, with a launch date expected in FY25.
•	 Increased demand for EV servicing in our fast-growing B2B channels
Priorities for Next 12 Months
•	 We are well-positioned to support UK customers with the switch to 
electric forms of transport and our progress here will be shaped by 
the pace of change in the UK vehicle market.
•	 The UK Government’s decision in September 2023 to postpone 
the ban on new petrol and diesel cars and vans by five years could 
slow down the adoption of electric vehicles, and growth has slowed 
this year. 
•	 Halfords strategy for Electrification is to lead the market in EV 
Servicing, but the speed at which it rolls-out EV servicing capability 
across the business will be proportionate to the pace of change in 
the UK vehicle market. 
Our Focus
•	 Reduce our carbon emissions and make progress on our 
reduction targets. These targets are aligned to the more 
ambitious 1.5ºC scenario set out in the Paris Agreement 
(2015).
•	 Reduce absolute Scope 1 and Scope 2 GHG emissions 42% 
by 2030 from a 2020 base year.
•	 Increase annual sourcing of renewable electricity to 100% by 
2030 from 0% in 2020.
•	 Reduce absolute Scope 3 GHG emissions from ‘Purchased 
Goods and Services’, ‘Capital Goods’ and ‘Upstream 
Transportation and Distribution’, by 25% before 2030 versus 
a 2020 base year.
•	 Our ultimate aim is to achieve Net Zero emissions across our 
value chain by 2050. We recognise we cannot do this alone, 
so will collaborate and partner with our suppliers, vendors and 
customers to work towards a Net Zero future.
Progress in FY24
•	 Reduced our Scope 1 and Scope 2 emissions by 49% from a 
FY20 baseline based on tCO2e per £1m of revenue.
•	 Significant progress made in calculating accurate data for 
Scope 3 emissions. 
•	 88% of electricity needs from renewable sources, backed by 
REGOs. 
Priorities for Next 12 Months
•	 Building upon strong foundations laid in FY24, the key focus 
in FY25 is to create the strategy and roadmap for Halfords 
Net Zero plan. 
•	 Continue to seek ways to further reduce Scope 1 and Scope 
2 emissions e.g. increased EV adoption rates for colleagues.
•	 Utilise improved tools and datasets to engage positively with 
suppliers on reducing Scope 3 emissions, whilst supporting 
them on their own Net Zero roadmap. 
Related UN Sustainable Development Goals (“SDGs”):
 
 
 
Related UN SDGs:
 
Link to Principal Risks
•	 Climate change and electrification
•	 Stakeholder support and confidence in strategy
•	 Skills shortage
Link to Principal Risks
•	 Climate change and electrification
•	 Regulatory and compliance
56
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ESG 
STRATEGY

Diversity & Inclusion
Product, Packaging & Waste Management
Our Focus
•	 Create an inclusive workplace in which all colleagues are able to 
be themselves at work, feel valued for their contribution and are 
supported to perform their best.
•	 Provide equal opportunities for all colleagues.
•	 Remove the gender/ethnic/diversity pay gap.
•	 Create accessible opportunities and training to improve female 
representation across our Group, particularly in our garages.
Progress in FY24
•	 Colleague Network Groups continued to meet regularly, 
providing a source of support, feedback, and awareness.
•	 Conducted a series of listening groups with colleagues at all 
levels, gathering feedback on D&I matters and giving a voice to 
all colleagues.
•	 Overall D&I score in annual colleague survey was 82%, with 86% 
of respondents reporting positively to the statement ‘I feel that I 
can be myself at work’.
Priorities for Next 12 Months
•	 Focus on increasing diversity of our Garage leaders population.
•	 Review recruitment approach and implement changes to 
remove bias.
•	 Invest in D&I training for colleagues, with recruitment training for 
line managers.
•	 Update D&I related policies e.g. Recruitment, Menopause and 
embed actions.
•	 Launch EDI council.
•	 Extend mentoring programmes, including introducing a Reverse 
Mentoring Programme for senior leaders.
Our Focus
•	 To develop a packaging material strategy that improves 
environmental impact through increased recyclability, the use of 
responsibly certified card and a reduction in virgin plastic.
•	 Reduce packaging tax through plastic reduction.
•	 Continue to seek innovative ways to reduce, reuse and recycle 
core waste streams.
Progress in FY24
•	 Removed 5.4 million items of plastic from our own-brand 
packaging.
•	 Reduced virgin plastic in our packaging by 41% since FY20 
baseline.
•	 Over 26,000 bikes either donated to charity or refurbished and 
sold second-hand to customers. This year, our Bike Xchange 
programme was extended to online which has significantly 
boosted the scheme.
Priorities for Next 12 Months
•	 Continue FSC card transformation programme and on-pack 
recyclability labelling.
•	 Further reduce virgin plastic use in our own label packaging e.g. 
bike boxes.
•	 Increase the number of products for which we offer recycling 
solutions e.g. inner tubes.
Related UN SDGs:
 
Related UN SDGs:
 
Link to Principal Risks
•	 Colleague engagement/culture
•	 Stakeholder support and confidence in strategy
Link to Principal Risks
•	 Climate change and electrification
•	 Sustainable business model
•	 Regulatory and compliance
 halfords.annualreport2024.com
57
STRATEGIC 
REPORT

Electrification
Our Ambition
“To be the leading name in electric mobility services, giving 
everybody the confidence to switch and continually enjoy 
the benefits of electric mobility.”
Overview
For Halfords, Electrification means leading 
the way as the UK shifts towards electric 
modes of transport and supporting our 
customers as they make the switch. Halfords 
is uniquely positioned in the UK to offer 
electric services and solutions for both two 
and four-wheeled modes of transport and 
we are proud to support our customers with 
everything they need as the UK transitions 
towards lower carbon electric mobility. 
Our ambition is to be the leading name 
in electric services, giving everybody the 
confidence to switch and continue to 
enjoy the benefits of E-mobility. We are in a 
privileged position to champion the needs of 
consumers and we intend to use our voice to 
develop the UK’s electric mobility industry.
Progress in FY24
We are committed to supporting the 
transition to E-mobility and providing 
our customers with the best service and 
experience possible. We have continued to 
invest in equipment and colleague training to 
increase our EV-ready service centres, which 
can handle all types of electric vehicles, from 
hybrids to battery electric vehicles (“BEV”). 
We have 274 EV-ready service centres 
across the country, representing 50% of 
the consumer garage estate. The whole 
estate provides national coverage, with 
90% of the population within a 20-minute 
drivetime. This investment enables us to 
meet the growing demand for EV servicing 
and maintenance, and to offer our customers 
more convenience and choice. 
We have been working on a proposition to 
introduce EV Servicing capability to our HME 
Mobile vans, with the aim to launch this in 
FY25. This will provide our customers with the 
convenience of having either a full or major 
EV service, completed at their home or work 
address from 8am to 8pm, 7 days per week.
We have seen increased demand for EV 
servicing from our B2B customers, for whom 
we provide servicing and maintenance of 
their fleet network. We provide customers 
with comprehensive and customised EV 
servicing solutions, which include preventive 
maintenance, diagnostics, repairs, and 
software updates. We also offer them flexible 
and competitive pricing, as well as dedicated 
account managers and support teams. 
We saw a significant increase in the number 
of EV vehicles serviced in our garages last 
year, up +149% vs FY23.
58
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ESG 
STRATEGY

STRATEGIC 
REPORT
59
 halfords.annualreport2024.com

Net Zero
Our Ambition
“Achieve Net Zero value chain emissions by 2050  
and interim reductions aligned to science-based principles.”
Overview
Addressing climate change through the 
reduction of greenhouse gas (“GHG”) 
emissions is now a key priority for most 
companies and Halfords is no exception. 
As one of the UK’s largest employers it is 
critically important that we make a strong 
commitment to tackle climate change and 
put this at the top of our ESG agenda.
Our carbon reduction targets are: 
•	 Reduce absolute Scope 1 and Scope 2 
GHG emissions 42% by 2030 from a 2020 
base year. 
•	 Increase annual sourcing of renewable 
electricity to 100% by 2030 from 0% 
in 2020. 
•	 Reduce absolute Scope 3 GHG 
emissions from “Purchased Goods and 
Services”, “Capital Goods” and “Upstream 
Transportation and Distribution” by 25% 
before 2030, versus a 2020 base year. 
Progress in FY24
We are committed to achieving our reduction 
targets by 2030 and have already made 
significant strides in reducing our direct 
greenhouse gas emissions. Compared to our 
FY20 baseline, we have reduced our Scope 
1 and Scope 2 emissions by 49% relative 
to revenue, through a series of initiatives, 
such as introducing LED lighting into our 
stores and garages (now at 60% of sites). 
We also procured 88% of our electricity from 
renewable energy sources.
With Scope 3 emissions accounting for 
a much larger proportion of our total 
emissions than Scope 1 and Scope 2, 
and of those the majority relating to the 
purchase of goods, it is imperative that we 
engage with our suppliers to support them 
on their own Net Zero journey. We have 
implemented the EcoVadis sustainability 
rating platform, which records and assesses 
the environmental, social, and ethical 
performance of our suppliers. 80p of every 
£1 we spend is now going through the 
EcoVadis platform, providing us with a strong 
dataset to understand where we should 
focus our efforts and to help inform our 
sourcing decisions.
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HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ESG 
STRATEGY

CASE STUDY
Scope 3 
emissions data
Scope 3 Emissions 
 Purchased goods and services 46.0% 
 Use of sold products (indirect) 35.0% 
 Upstream transport and  
  distribution 7.0% 
 Use of sold products (direct) 5.0% 
 Other 7.0%
With support from industry 
experts, Carbon Trust, we 
have significantly improved 
the accuracy of our Scope 3 
emissions data. 
For over 90% of our emissions, we have 
replaced our estimates that are based on 
supplier spend to one that utilises volumetric 
data (e.g. actual purchase volumes) and 
emissions factors from reputable data 
libraries. The six-month project provided 
us with actionable insight on the product 
categories and suppliers contributing most to 
business value-chain emissions, and provides 
us with a robust dataset that will support our 
Net Zero roadmap planning in FY25 and our 
overall decarbonisation journey.
 halfords.annualreport2024.com
61
STRATEGIC 
REPORT

Diversity & Inclusion
Our Ambition
“Make Halfords a truly inclusive place to work and representative  
of the customers and communities we serve.”
Overview
Halfords Group is committed to providing 
equal opportunities to colleagues and 
candidates. This applies to recruitment, 
training, career development and promotion, 
regardless of physical ability, gender, sexual 
orientation, pregnancy and maternity, 
race, religious beliefs, age, nationality or 
ethnic origin.
We are proud to promote diversity in the 
motoring and cycling industries through our 
engagement and representation on Diversity 
and Inclusivity (“D&I”) working groups within 
the Institute of the Motor Industry (“IMI”). 
We work hard to ensure every colleague 
feels they can be themselves at work and 
perform to their best. We recognise there is 
always more we can do, and we are excited 
to build on our foundations through ongoing 
engagement with colleagues.
Our key areas of focus are: 
•	 Increasing female representation across 
all levels, particularly in our Services 
businesses and our Leaders Group. 
•	 Increase the ethnic diversity of our 
colleague base, with a particular focus on 
developing talent from within the Group 
and increasing the ethnic diversity of our 
leadership population. 
•	 Create an inclusive culture so that 
all colleagues feel that they can be 
themselves at work, be treated fairly, and 
be given equitable opportunity to succeed. 
Progress in FY24
Our four Colleague Network Groups – 
Women of Halfords, LGBTQIA+, Ability and 
Disability, and Race and Ethnicity – are a key 
component of our Diversity and Inclusion 
strategy, providing a supportive forum for 
colleagues from different backgrounds, 
identities, and experiences to share their 
views and perspectives. Led by colleagues 
working at different levels of the organisation, 
these groups continued to meet throughout 
the year, discussing the key issues and 
challenges that affect their community, 
providing the leadership teams with 
feedback, and promoting awareness. 
A series of listening groups, held with 
colleagues at all levels and functions of 
the Group, were conducted during FY24, 
where the focus was to gather feedback on 
how Halfords can improve its diversity and 
inclusion practices. The listening groups were 
facilitated by our people function, and many 
were also attended by the Chair of the ESG 
Committee, which was both Helen Jones 
and Tanvi Gokhale in FY24. The insights and 
recommendations from the listening groups 
will be used to inform our Diversity and 
Inclusion strategy.
The Halfords apprenticeship scheme offers 
a unique opportunity for people new to the 
industry to learn from our experienced and 
talented colleagues. It is also a significant 
lever to increase the diversity of our 
colleague base and improve our inclusivity. 
In FY24, 12 apprentices joined Halfords, 
of whom 8% are female. The apprentice 
intake of 12 in FY24 was much lower than 
FY23, as we rebalanced the workforce, but 
we plan to increase this significantly next 
year to more than 150, where we aim to 
recruit more diverse apprentices. This is 
driven by our proactive efforts to attract 
more female candidates, such as partnering 
with schools and colleges, hosting open 
days and events, and showcasing the 
achievements and stories of our female 
colleagues and apprentices. This year one 
of our female Apprentices, Holly Darvell, won 
the IMI Apprentice of the Year Award. We are 
determined to continue this progress and to 
create more opportunities for women in our 
industry. 
Our annual Colleague Engagement Survey 
has included diversity and inclusion questions 
for several years, and therefore provides us 
with good feedback for measuring colleague 
sentiment. This year, the overall D&I score 
was 82%, with 86% of respondents reporting 
positively to the statement ‘I feel that I can be 
myself at work’. 
62
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ESG 
STRATEGY

CASE STUDY
Apprentice of the Year
Holly Darvell is a 21-year old apprentice working in the Canterbury 
Autocentre, having joined Halfords 18 months ago. Holly won 
Apprentice of the Year at Halfords from a shortlist of 120 
colleagues and then followed this up by winning the same award at 
The Institute of the Motor Industry’s (IMI) annual awards show. 
In addition to performing her role with exceptional aptitude, Holly 
has also been a champion of diversity in the industry. Being a 
woman in a predominantly male environment is a challenge, one 
that Holly rises to consistently, working at the same level as many 
experienced technicians. She goes the extra mile to encourage 
more women to enter the industry. Specifically, she was part of a 
programme that involved going into primary schools to talk about 
the industry to young students who may not know how exciting 
and diverse it is. 
Holly’s determination, skills, and passion for promoting diversity in 
the industry are truly admirable and provide a real success story 
for our Apprenticeship programme. 
Gender Pay Gap 
Achieving gender equity in pay is an 
important pillar of the Group’s overall 
Diversity and Inclusion strategy. Although 
slightly higher than the previous year, the 
median pay gap of 6% remains significantly 
below the national median of approximately 
9%. The increase on the prior year reflects 
the growth in the Autocentres business, 
which has a lower proportion of female 
colleagues who also tend to be in less senior 
roles or are relatively new to the industry. 
Our plan to increase gender diversity is 
most heavily focussed on the Autocentres 
business, where we aim to lead the industry 
with best-in-class diversity and inclusion 
practices. 
Diversity and Inclusion Data
 Female 17% 
 Male 78% 
 Other 1% 
 Prefer not to say 4%
 Asian or Asian British 6% 
 Black/Black African/Black Caribbean/Black Other 3% 
 Middle Eastern 1% 
 Mixed or Multiple Ethnic Heritage 2% 
 White/Caucasian/White other 80% 
 Other 2% 
 Prefer not to say 6%
 halfords.annualreport2024.com
63
STRATEGIC 
REPORT

Our Colleagues
Colleague Engagement
Colleague engagement is vital to our success 
as a business. Each year, we conduct a 
Colleague Engagement Survey, that provides 
actionable, anonymised reports at a team 
level. This year’s survey, conducted in April 
2024, had a response rate of 95% and an 
engagement index score of 72%, a reduction 
from the previous year’s score of 75%. In 
response to the survey results, every team 
produces an engagement plan for the year 
ahead, which rolls up into department and 
Group plans.
Training and Development
We remain committed to providing best-in-
class training to our colleagues. This includes 
field-based training for store and garage 
colleagues, such as the servicing of Electric 
Vehicles or Bikes, to online training courses 
on management and leadership skills. Some 
highlights from FY24 were: 
•	 Values Recognition Scheme: This year saw 
823 colleagues nominated for our Values 
Recognition Scheme, ‘Colleague of the 
Quarter’. Colleagues are nominated by 
their peers for how well they role model the 
Halfords Values. Each quarter our Values 
Champions from across the business 
award 12 Colleague of the Quarter awards 
and another 12 are recognised for their 
contribution.
•	 In Retail, we trained over 4,000 colleagues 
in technical skills to deliver our We Fit 
propositions.
•	 Apprentice programme: we currently have 
104 people on Apprenticeships, with plans 
to recruit over 150 in FY25.
•	 Electric vehicle servicing: 195 garage 
technicians completed their Hybrid 
Level 3 qualifications and 24 HME 
technicians completed their Hybrid Level 
2 qualifications. We introduced our T4 
Technician Development Programme, 
providing us with 10 EV L4 garage 
technicians/experts.
•	 We trained over 1,000 garage technicians 
to achieve automotive qualifications.
•	 Over 500 garage managers and 40 Supply 
Chain managers attended our two day 
‘DRIVE’ programme, which is focused on 
developing management skills.
Health and Safety
At Halfords we commit to operating in a 
manner that ensures the health, safety and 
wellbeing of our colleagues remains at the 
forefront of our organisation. We recognise 
that high standards of health and safety 
are good business practice, and require 
persistent management focus supported by 
appropriate financial and physical resources. 
We maintain an effective health and safety 
management system that focusses on 
both our organisations compliance and 
colleague culture.
Halfords recognises that good health 
and safety adds value, increases overall 
engagement levels, empowers our colleagues, 
and also provides efficiencies in enabling us to 
become a more sustainable organisation. 
Our health and safety performance is 
measured through periodic audits, site 
inspections, safety concerns, reported 
events, and visible leadership tours. We 
have a clear strategic approach within 
our Group Health and Safety Roadmap to 
reduce colleague harm, ensure our risks are 
prioritised, and improve overall awareness 
throughout the organisation. We work 
collectively with our management teams 
to provide clear, robust, and fit for purpose 
safety standards that are consistently 
reviewed to ensure they not only fulfil, but 
also surpass local laws and regulations. Our 
Board receives frequent communication on 
health and safety performance and regular 
updates on roadmap progression.
At Halfords we believe our management 
team to be the most significant influencer 
on the behaviour of our people, and it is 
the ability of our management teams to 
influence that behaviour which consequently 
determines our overall health and safety 
performance. We deploy Visible Safety 
Leadership (“VSL”) to enable members of our 
management team to visibly demonstrate 
and commit to ensuring that all of our 
colleagues are operating in both a safe, and 
healthy manner. Our management, regardless 
of their function, view our operations directly 
on the ground, and are able to proactively:
•	 experience first-hand tasks our colleagues 
undertake on a daily basis.
•	 discuss safety concerns with colleagues in 
an open environment.
•	 agree and support with safer and more 
efficient solutions.
•	 empower colleagues to operate without 
jeopardising their personal safety.
•	 reaffirm and visibly demonstrate an 
interest and that ‘We Care’.
The Group’s Safety Non-Negotiables 
(“SNNs”) have been developed with our 
colleagues to ensure sufficient health and 
safety standards are both maintained and 
respected at all times. These provide a clear 
set of expectations to reflect our personal 
values, ethics, and principles when it comes 
to the health, safety, and wellbeing of our 
colleagues. We fundamentally believe in 
promoting a cooperative approach with our 
colleagues to both understand, and promptly 
rectify any shortcomings of safety standards. 
Compliance with our health and safety policy 
is a condition of employment, and our Board 
openly supports all colleagues endeavouring 
to carry it out. Equally our Board recognises 
colleagues identifying good practices and 
demonstrating exceptional leadership.
Clear standards and procedures detailing 
safe ways of working to manage health and 
safety across the business continue to be 
developed, based on risk assessments 
that are reviewed on an ongoing basis. 
We work with primary authorities to obtain 
assured advice covering operational safety 
and fire safety to comply with all applicable 
regulations. We use this information to 
develop colleague-centric training providing 
the tools and knowledge to enable them to 
operate in a safe manner. 
Regular health and safety audits are 
conducted by field teams to ensure our 
operations remain safe for both colleagues 
and customers, ensuring compliance so far 
as is practicable is aligned with both health 
and safety laws and our internal policies.
Charity and Communities
Halfords is proud to support charities 
and communities across the UK, through 
charitable donations, gifts in kind and time. 
We have relationships with several charity 
partners, including with Mind, who we began 
a three year partnership with starting in FY22. 
Mind, together with its sister partners, Inspire 
(Northern Ireland) and SAMH (Scotland), is 
a mental health charity with local presence 
across the UK. Not only is this an important 
charity that provides significant benefit to 
UK society, but it also aligns with our own 
wellbeing programme for colleagues. In FY24 
we donated £23,000 to Mind. 
We have also continued to work with other 
charities that have a strong connection to 
Halfords, which you can read more about in 
the case studies on the next page. 
64
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ESG 
STRATEGY

HMP Drake Hall
The Halfords Academy at HMP Drake Hall (a prison and 
young offender institution in Staffordshire, for women aged 
18 and over) was launched in 2016. It offers participants 
the opportunity to train as cycle mechanics and create the 
prospect of steady employment upon release.
The programme is tailored for each participant with an added 
focus on Mechanics, Customer services or Retail. Since launch, 
over twenty graduates have joined the business in a variety 
of roles following their release. Fully supported by Halfords 
colleagues, participants are subject to the same high standards 
of training as all colleagues within the Group – the training 
programme is thorough, designed to challenge participants and 
raise aspirations.
The programme provides offenders with the opportunity to be 
trained and work on the reconditioning of bikes, which are then 
donated to charities. For example, many bikes are donated to 
primary schools in disadvantaged areas to help children access 
cycling through the Halfords school bike donation scheme.
Link to 
 
CASE STUDY
Re-Cycle and Krisevac 
Halfords has worked with the Re-Cycle charity since 2013 
– an amazing charity which repurposes bikes by sending 
them to those in desperate need of basic transport in African 
countries, training mechanics in-country to recondition 
the bikes and ultimately giving the bike a second life. For 
the people in these communities, a reliable bike is essential 
for their livelihoods and Halfords is well-placed to provide 
this support. 
We encourage our customers to donate their old bikes at our 
stores, which are then transported to our central distribution 
centre before being shipped to the main Re-Cycle hub. When 
the bikes are received at Re-Cycle, they are assessed for 
quality and suitability to send to Africa. They are then sent 
to Re-Cycle’s Africa Partners and ‘prepped’ by an amazing 
team of volunteers, before being taken to communities 
in desperate need. Re-Cycle has a zero-waste policy and 
any parts or components that cannot be repurposed or 
reused are recycled. This is very much aligned with our own 
ambitions to reduce products and packaging ending up in 
landfill and is a great example of how a circular economy 
can help benefit the planet in various ways. Read more here: 
https://re-cycle.org/about-us/ 
Project Krizevac is achieving lasting, enterprising change 
in some of the most disadvantaged areas of Africa. They 
provide high quality education, set up enterprises and 
support the most vulnerable. Part of this is the ‘Cycle of Good’ 
project which employs over 30 Malawian tailors full-time 
who earn a good wage and support their families without 
help of donations. The bikes and parts, such as waste inner 
tubes and other materials saved from landfill, are shipped 
in containers to Malawi where tailors carefully craft what 
was waste into useful and beautiful items. Read more here: 
https://www.cycleofgood.com/our-story/ 
Across the last year, we have donated over 20,000 bikes to 
these charities and are proud to be partners with all of them.
Link to 
 
 
CASE STUDY
 halfords.annualreport2024.com
65
STRATEGIC 
REPORT

Product, Packaging 
and Waste Management
Our Ambition
“Minimise our environmental impact and increase our transparency 
whilst continuing to pursue sustainability opportunities within our 
product portfolio.”
Overview
Halfords has a rich heritage as a destination 
for cycling and motoring services, 
maintenance and repair. Through its full 
estate, Halfords is responsible for millions 
of repairs each year and therefore plays an 
important role in enhancing the longevity of 
products and promoting a circular economy. 
We will expand these strengths to offer this 
industry-leading service in the emerging 
E-mobility market, to reduce the impact of 
full-product replacements by upskilling our 
store colleagues in service and repairs – 
leading to a better customer experience and 
reduced environmental impact.
Progress in FY24
Product and Packaging 
Our strategy focusses on the principles 
of Reduce, Reuse, Recycle and we have 
seen good success in establishing a strong 
recycling economy. We encourage our 
customers to bring in a range of products 
to our stores for recycling, whilst our WeFit 
Service means that colleagues can recycle 
such items directly, without customers having 
to take them home. Recycled products in 
store include car batteries and cycle inner 
tubes, whilst 396,000 wiper blades were 
recycled in FY24. 
Our Bike Xchange programme continues to 
see a strong response from customers. The 
scheme allows customers to trade in their 
old bikes for vouchers to buy new ones. Over 
16,000 bikes have been returned via our 
Bike Xchange programme this year, having 
extended the proposition to online, which 
has significantly boosted the scheme. Any 
of the trade-in bikes which are not resold 
to customers are donated to our charity 
partners Re-Cycle and Krisevac. During the 
year, over 20,000 bikes were donated to 
these charities.
We continue to make significant progress in 
improving the environmental credentials of 
our packaging. For our own-label products, 
the amount of responsibly-sourced packaging 
increased to 30%, meaning that it is either 
recyclable, compostable, biodegradable, or 
made from renewable or recycled materials. 
Furthermore, we removed 5.4 million items of 
plastic from our own-brand packaging, such 
as plastic trays, zip ties, and lids. This has 
saved over 29 tonnes of plastic waste.
In addition to removing plastic from our 
packaging, we are also reducing the amount 
of virgin plastic we use. Virgin plastic is 
made from fossil fuels and contributes to 
greenhouse gas emissions and climate 
change. We have reduced virgin plastic in our 
packaging by 41% since our FY20 baseline, 
by swapping to plastic alternatives or using 
lightweighting techniques to reduce the 
amount of plastic used in each item. 
Accurate data is key to driving innovation 
and improvement in our packaging. We 
have collected component-level packaging 
data for our own-label packaging, having 
analysed the weight, material, recyclability, 
and carbon impact of each packaging 
component for over 10,000 products. This 
has enabled us to identify opportunities for 
optimisation, redesign, and substitution of 
packaging materials.
Waste Management 
Halfords is committed to minimising the 
impact of waste on the environment by 
promoting and facilitating the waste hierarchy 
through prioritising reduce, reuse and recycle, 
and, where necessary, managing waste 
disposal in a responsible and compliant 
manner. During FY24, our total waste tonnage 
was 47,688. 
Our recycling rate fell from 56% to 51%, 
with incineration increasing from 44% to 
49%, almost all of which is done with energy 
recovery. We are working with a major tyre 
processing business who has a leading role 
in the development of a pyrolysis solution, 
which we believe will significantly increase 
tyre recycling and our overall recycling rates. 
66
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ESG 
STRATEGY

Waste going to landfill makes up less than 
1% of total waste, now limited to Automotive 
lead battery waste sludge, which is a 
by-product of the recycling process.
Waste solutions
 Recycled 51% 
 Landfill 0.1% 
 Incinerated with energy recovery 48% 
 Incinerated without energy recovery 1%
Responsible Sourcing
We are committed to maintaining high 
ethical standards within the supply chain. We 
updated our Global Sourcing Code (“Code”) 
in FY23, which sets out the principles that are 
instrumental in enabling our commercial and 
responsible sourcing goals. 
Our Code also works to raise global supply 
chain standards and positively enhance 
the lives of the many people working in our 
global supply chain. Our Code supports our 
commitment to respect human rights and 
uphold international standards, including 
the United Nations (“UN”) Guiding Principles 
on Business and Human Rights and the 
Organisation for Economic Cooperation 
and Development (“OECD”) Guidelines for 
Multinational Enterprises. Our commitment 
to respect human rights is based on the 
International Bill of Human Rights consisting 
of the Universal Declaration of Human 
Rights, the International Covenant on Civil 
and Political Rights and the International 
Covenant on Economic, Social and Cultural 
Rights; and the International Labour 
Organization’s (“ILO”) Declaration on 
Fundamental Principles and Rights at Work. 
The Code details the minimum standards 
we expect our suppliers to adhere to and, in 
turn, ensure that their own business partners 
meet similar standards. Our Code covers 
expectations in the areas of environmental 
management, responsible sourcing of 
materials, safe working practices and 
human rights. 
Over 80% of our suppliers (by spend) have 
so far signed up to our Global Sourcing 
Code. We monitor our suppliers’ compliance 
with the Code through audits, inspections, 
and feedback mechanisms, and we provide 
them with training and support to help them 
meet our expectations. Continued non-
compliance will lead to us ending a supplier 
relationship but our strong preference is 
to work in partnership with our suppliers 
to make improvements and help them to 
adhere to the code. We encourage a culture 
of ‘speaking up’ and expect our suppliers 
and their workers to do so in confidence and 
without fear of retaliation. 
Due Diligence
We have implemented the EcoVadis platform 
to collect a series of data points relating to 
responsible sourcing practices, including 
for example, areas such as environmental 
management, ethics, labour practices, and 
human rights. The EcoVadis scorecard helps 
to inform our own due diligence process, 
highlighting good practice and where 
there may be greater need for auditing, 
remediation or corrective action. We apply a 
risk-based (or tiered) approach to assessing 
and auditing our suppliers. For Tier 1 
suppliers, which are those operating in higher 
risk countries, we conduct in-depth audits, 
including in-person factory visits, confirming 
compliance every two years as standard, and 
every year for bike suppliers. Tier 2 suppliers 
are generally own-brand manufacturers 
operating in low-risk countries. For these, we 
may accept an alternative audit report as a 
means of validating compliance, and we will 
accept a reduced frequency of audit. Tier 
3 suppliers are proprietary branded goods 
for resale. We currently have over 80% of 
suppliers by spend on the EcoVadis platform. 
CASE STUDY
Plastic Packaging
Our Packaging and Bike design teams led a 
project to identify opportunities to reduce bike 
packaging for our adult mechanical bike range. 
We focussed on our popular Carrera Vengeance mountain 
bike, which we identified had 28 separate items of plastic in its 
packaging. 
We have now reduced this to 11 items of plastic (for now), a 62% 
reduction, which will save 6 tonnes of material and 1.7 million 
items of plastic. These changes will be rolled out across other bike 
suppliers in FY25. 
This has also saved time for those colleagues who assemble bikes 
for customers, improving their experience and reducing costs.
 halfords.annualreport2024.com
67
STRATEGIC 
REPORT

Performance Data 
Carbon Emissions 
Unit 
FY20 
(baseline)
FY23
FY24
Comments
Gas consumption  
(+acquisitions for rebaselining  
of FY20 emissions)
tonnes 
11,749 
(+95)
8,880
7,799
12% reduction driven by energy management initiatives.
Gas consumption
kWh
63,902,230
48,649,459
42,634,183
Vehicles on Company business 
(+acquisitions for rebaselining  
of FY20 emissions)
tonnes 
2,547 
(+2,499)
6,315
7,401
Increase due to inclusion of vans from acquired Lodge 
business. Excluding Lodge, emissions reduced by c. 9%.
Total Scope 1 (rebaselined FY20)
tonnes
16,890
14,233
15,200
Electricity consumption 
(+acquisitions for rebaselining of 
FY20 emissions)
tonnes 
13,473 
(+1,436)
8,095
9,020
Electricity consumption
kWh 52,712,652
41,858,265
43,560,004
FY24 increase driven by inclusion of Lodge, but 17% 
below FY20.
Renewable energy  
(% of Group needs)
% 
0
76
88
Backed by REGO certificates
Total Scope 2 (location based)
tonnes
14,909
8,095
9,020
Total Scope 1 and Scope 2
tonnes
31,799
22,328
24,220
tCO2e per £1m Group revenue
tonnes
27.8
14.0
14.3
49% below the FY20 baseline.
Note: Scope 2 emissions are calculated on a location-based approach. FY24 Scope 2 emissions calculated on a market-based approach are 1,116 tCO2e.  
Rebaselining calculations for Scope 1 and 2 was completed using intensity metrics in the absence of FY20 carbon emissions data for acquisitions.
Note: in the FY23 Annual Report and Accounts, the total scope 1 and 2 emissions figure was reported incorrectly as 23,290 tonnes. This has been corrected to 22,328 in the above 
table. The intensity metric below that row of 14.0 replaces the previously reported incorrect figure of 14.6.
Total Scope 3 (see page 61 for detailed breakdown). 
Unit 
FY23
FY24
Comments
Water
Water consumption 
m3
249,130
245,254
1.6% reduction year-on-year.
Waste
Total waste 
tonnes 
43,542
47,688
Approximately half of the increase in total waste is due 
to an increase of general waste in Autocentres, which 
is driven by the organic and inorganic growth of the 
segment. We have seen a reduction in incineration 
without energy recovery and landfill is limited to 
Automotive lead battery waste sludge, which is a by-
product of the recycling process.
Waste recycled 
tonnes 
24,274
24,075
Waste incinerated with energy recovery 
tonnes 
14,707
23,030
Waste incinerated without energy recovery 
tonnes 
4,282
528
Waste to landfill 
tonnes 
239
54
Product
Bikes returned through  
Bike Xchange and resold
Number 
11,047
6,378
Decrease driven by market volume decline
Bikes donated to charity partners
Number
8,543
20,385
Significant increase driven by more trade-in events
Packaging
Reduction in consumer-facing virgin plastic 
(vs. FY20)
%
37.5
41.0
A significant success in FY24 was 28 tonnes of plastic 
reduction in bulb packaging.
Occupational Health and Safety
Reporting of Injuries, Diseases and 
Dangerous Occurrences Regulations 
(“RIDDOR”) 
Number
34
47
 
Ethics Training
All FCA training, including Conduct Rules, 
Treating Customers Fairly  
and Vulnerable Customers. 
% 
Completion 
76
94
Anti-bribery 
% 
Completion
70
70
Competition Law 
% 
Completion
64
66
Modern Slavery 
% 
Completion
88
37
Reduction due to the training course being opened up to 
the entire colleague base
68
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
OUR ESG 
STRATEGY

Halfords Group plc Board of Directors
ESG Committee
Audit Committee
Remuneration 
Committee
ESG Board
The following disclosure is consistent with the recommendations of the  
Taskforce on Climate Related Financial Disclosure (“TCFD”) as stated  
in the listing rule LR 9.8.6(8)R. 
This is our third year of disclosure under 
TCFD and whilst improvements have 
been made, we will continue to seek ways 
to enhance our climate disclosures. We 
recognise that climate change poses both 
risks and opportunities to our strategy and 
operations and as a result, this is included 
as a principal risk within our Annual Report 
and Accounts. 
1.	 Governance
The Board oversees our approach to climate 
change and its impact on strategic decisions 
and is committed to reducing the impact 
of climate change on our operations whilst 
monitoring the opportunities that it presents. 
The ESG Committee is a committee of the 
Board, comprised of three Non-Executive 
Directors, and offers advice and guidance 
to the business based on a wealth of 
experience. The ESG Committee met three 
times during FY24. The Executive Team 
are ultimately responsible for the day-to-
day management of the ESG programme. 
They, alongside colleagues in key ESG roles, 
form the ESG Board, which meets regularly 
and is focussed on the delivery of our ESG 
strategy and the management of emerging 
risks and opportunities. The ESG Board met 
seven times during FY24. Members of the 
ESG Board regularly attend ESG Committee 
meetings to provide important updates on 
the ESG programme. Climate-related risks 
are monitored through our risk management 
process, which is overseen by the Audit 
Committee, with Climate Change and 
Electrification designated as a Principal Risk. 
Financial, Operational, Strategic and Brand 
impact are all considered when prioritising 
risks and opportunities. 
This year, we conducted Board training on the 
current landscape of sustainability reporting 
and disclosures, including the likely direction 
of travel in the coming years. 
The Board contributed to discussions on 
the steps required to mitigate climate risk, 
which were identified through our scenario 
analysis. These discussions contributed 
to the further development of our strategy 
on electrification, which was presented 
to investors at our Capital Markets Day 
in April 2023. Our Electrification strategy, 
which is a response to the transitional risk 
of combustion engine cars being replaced 
by electric alternatives, is our most material 
risk but also a significant opportunity for the 
Group to establish itself as a market leader 
in servicing Electric vehicles. At this time, the 
Board does not believe other climate risks, 
such as extreme weather events, have a 
material impact on financial forecasts, but this 
will be kept under constant review. 
Looking ahead, we will continue to upskill the 
Board, senior leaders and other colleagues 
on Climate Change matters, including how 
the Group responds to emerging risks 
and opportunities. 
2.	 Strategy
In response to climate change, the UK 
Government had previously set a policy to 
ban the sale of new Internal Combustion 
Engine (“ICE”) vehicles from 2030. During the 
last year, the Government has postponed 
the date to 2035. This does not change our 
focus on the importance of lower-carbon 
forms of transport, however the business will 
need to adapt its pace of change if consumer 
adoption slows.
Both our Corporate and ESG strategies are 
closely focussed on the growth of E-mobility 
and we have set out our ambitions to lead the 
market in Electric Servicing as the UK shifts 
towards more sustainable mobility options, 
specifically EVs, E-bikes and E-scooters. 
We have also committed to providing 
industry-leading training to our colleagues 
to better support customers as they make 
the switch to electric. Further information is 
available in the Electrification segment of our 
ESG Report. 
The acceleration of our strategy – to evolve 
into a consumer and B2B services-focussed 
business – also positions us well for any 
climate-related changes in the future with 
service-led markets being significantly more 
resilient than product-based ones, e.g. not 
reliant on complex supply chains.
As we progress and better understand the 
impact of climate change on our business, 
and the demands of our key stakeholders, 
we commit, via our ESG Board, to regularly 
reviewing our strategy and ensuring that we 
adapt it appropriately to mitigate the risks and 
leverage the opportunities that emerge.
Risks and Opportunities
Risks and opportunities relating to Climate 
Change are identified through an approach 
that aligns with the Group’s principal risk 
process. Internal stakeholders, starting 
with the ESG Board but also engaging 
relevant subject matter experts in the 
business, are consulted on identifying the 
risks and opportunities, their potential to 
have a material impact, and our mitigating 
response. The output of this process is 
summarised below, detailing the key risks and 
opportunities that we face. The Board deems 
these key risks and opportunities to remain 
the same for the current year. They are split 
into two areas: 
•	 Transitional risks are those associated with 
policy, technology, and market changes 
due to the transition to a lower-carbon 
economy. 
•	 Physical risks describe the physical 
impacts of climate change, which include 
event-driven impacts (acute) and longer-
term shifts in climate patterns (chronic).
 halfords.annualreport2024.com
69
STRATEGIC 
REPORT
TCFD

Description
Area
Timeframe
Risk/Opportunity
Transition
The UK Government’s ban 
on the sale of new petrol/
diesel vehicles by 2035 will 
necessitate a change in the 
products and services we 
offer. This represents both 
risk (e.g. reduced demand for 
engine oils) and opportunity 
(e.g. Electric Vehicle servicing 
and E-bikes).
Political 
and Legal
Medium-Long
Risk and Opportunity
Consumers will increasingly 
look for more sustainable 
products and services. A 
failure to respond to this 
demand could lead to a 
loss in brand consideration, 
market position and revenue, 
however an opportunity 
exists to innovate and take 
market share in an emerging 
market. 
Market
Short-Medium
Risk and Opportunity
Failure to deliver against our 
climate strategy and net 
zero targets, leading to a 
loss in confidence from our 
stakeholders and potential 
reputational damage.
Reputational
Medium-Long
Risk
Physical
Disruption of either 
supply chains, operations 
or customers due to 
infrastructure damage from 
extreme weather events.
Acute and 
Chronic
Medium
Risk
Should winter in the UK 
become milder and wetter, 
this could adversely impact 
demand for certain products, 
such as car cleaning, 
batteries and de-icer.
Chronic
Medium
Risk
Our timeframes considered are as follows: 
Short-Term 1-3 years; Medium-Term 
3-10 years; Long-Term 10-25 years.
We consider all climate-related risks and 
opportunities as part of our risk management 
process and, where material impacts 
are identified, put in place the necessary 
mitigations to offset the impact at the 
appropriate time. No such material impacts 
have yet been identified. Climate-related 
opportunities continue to be monitored and 
our strategy adjusted to take advantage 
of such opportunities. For example, at 
our Capital Markets Day in April 2023 we 
discussed the Group’s strategic focus on 
electric forms of transport in response, in 
part, to the risks stated above.
Scenario Analysis
We have carried out detailed quantitative 
scenario analysis over four key climate-
related risks and opportunities to explore the 
potential range of climate-related outcomes 
and financial impact to the business. In 
alignment with the TCFD recommendations, 
1.5°C, <2°C, 2-3°C and 4°C scenarios have 
been selected for timeframes 2030 and 
2050. (Note: 1.5°C scenario was only for 
transition risk and 4°C scenario was only for 
physical risk.)
We selected the Future Energy Scenarios 
from the National Grid to model transition 
risks, and the IPCC’s Shared Socioeconomic 
Pathways (“SSP”) scenarios to model physical 
risks. We chose the Future Energy Scenarios 
as these are grounded in the current 
characteristics of the UK’s transportation 
system and take into account legislation 
on the ban of new petrol/diesel cars in the 
UK. Data from Jupiter Intelligence was used 
to model the physical risks for a sample of 
Halfords sites.
Note: For transition risk, scenario analysis 
was conducted to assess how climate 
change and the transition to a lower carbon 
economy could impact motoring and EV 
products and servicing at Halfords. This was 
only conducted on the Motoring element of 
Halfords’ business.
70
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
TCFD

Potential impact on business
Halfords Response 
Mitigations / Reinforcements
Transition
Lower demand due to 
EV transition
Note: Scenario analysis 
was prioritised on 
motoring products 
and services as it is 
recognised that the 
insights are important to 
guide Halfords’ strategic 
direction moving forward.
•	 Reductions in Motoring 
services revenues are driven 
by the assumed lower cost 
per serviced EV but are also 
influenced by a changing total 
vehicle stock.
•	 Reductions in Motoring product 
revenues are driven by selling 
fewer maintenance-related 
products for EVs compared 
with internal combustion engine 
(“ICE”) vehicles.
Vehicle servicing currently 
represents a very small proportion 
of total Group sales (low single 
digit percentages). The assumed 
lower EV servicing costs do not 
account for the opportunity to 
increase the volume of serviced 
vehicles due to reduced turn- 
around time or the potential need 
to increase prices due to the 
specialist skillset required for EV 
servicing. Further, other revenue 
streams are likely to increase, 
such as tyres due to the heavier 
degradation associated with EVs. 
Despite only making up a fraction 
of overall revenue, we feel we’re 
well positioned to manage this risk 
and associated opportunities.
•	 Continue to grow share in areas 
of the market which are not 
impacted by fuel type. 
•	 Ensure buying teams are kept 
up to date with latest product 
trends to mitigate products 
revenue loss from lower BEV 
product sales.
•	 Monitor the regulatory 
environment for changes 
to policies around e.g. sale of 
ICE vehicles, tax breaks for 
e-mobility or infrastructure 
developments.
•	 Monitor market for EVs both 
from a manufacturing side 
and consumer uptake side so 
Halfords can appropriately shift 
its business model to account 
for the rise of e-mobility, 
increasing volume to counter 
lower profitability per unit under 
current business models. 
Electric Vehicle 
Technical Skills
•	 As the number of EVs increases, 
the number of EV technicians 
must also increase.
•	 In every scenario, all servicing 
will be 100% electric by 2050. 
We recognise the need to upskill 
EV servicing technicians and are 
already making good progress 
with our training programme. We 
continued the #Plugtheskillsgap 
campaign, calling on the industry 
to train EV technicians to meet the 
needs of EV servicing.
We believe we’re well positioned to 
manage this risk. 
•	 Keep technicians up to date with 
the latest developments in EV 
servicing.
•	 Continue supporting 
customer education on 
e-mobility to allow them to make 
more sustainable choices, whilst 
making the transition simple and 
convenient.
•	 Partnerships to advance 
e-mobility and create new 
market opportunities. 
 halfords.annualreport2024.com
71
STRATEGIC 
REPORT

Potential impact on business
Halfords Response 
Mitigations / Reinforcements
Physical 
Extreme 
Weather Events
Note: Analysis carried 
out on select Halfords 
UK and supplier sites 
only, i.e. sites with the 
most material impact on 
Halfords operations.
•	 Significant and diverse risks 
to our physical sites due to 
extreme weather.
•	 Increased flooding in the UK and 
increased heat in South East 
Asia are most prominent risks.
•	 All scenarios suggest an 
increased magnitude of floods 
with more damage to contents 
and inventory.
Whilst only a small number of our 
sites were deemed as being high 
risk to flooding, we recognise the 
potential for supply disruption due 
the flooding and extreme weather. 
We are working with our suppliers 
to better understand their climate 
resilience and carbon reduction 
strategies. This information and 
data collection will support further 
scenario analysis to gain a more 
complete picture of this risk. We 
consider ourselves well placed to 
manage this risk.
•	 Work with insurance providers 
to ensure our estate is covered 
with adequate weather-related 
cover and importantly any 
necessary structural amends 
are prioritised for sites at 
potential risk.
•	 Work with suppliers to 
better understand climate risk 
management and resilience 
within key supply areas. 
•	 Assign accountability for 
assessing and managing risks.
•	 Integrate physical risk 
assessment into core risk 
management processes.
•	 Improve data collection 
to increase the accuracy of 
scenario analysis and expand 
scope of analysis.
Increased 
Temperatures
•	 Climate change will cause 
hotter, longer summers and 
milder winters resulting in 
risks and opportunities for 
our product and servicing 
categories which correlate to 
temperature.
•	 All scenarios suggest relatively 
low impact to overall revenue 
due to the balance of positive 
and negative changes.
We recognise the potential for 
peaks in demand for product 
ranges that are more receptive 
to warmer climates and the 
opportunity this presents. We are 
well-positioned to realise these 
opportunities and will continue 
analysis for additional product 
ranges in this area.
•	 Monitor the markets to ensure 
buying teams are kept up to 
date with projections of the 
impact on product sales.
•	 Expand analysis for additional 
product areas.
•	 Assess supply chain 
resilience against the projected 
demand increases and identify 
potential periods of supply chain 
stress.
The next stage of scenario analysis, in which we will overlay Halfords-specific data and financials, was deprioritised in FY24. This was in part 
due to our expectations that new reporting frameworks will be announced during 2024 and we will need to ensure we comply with these new 
frameworks before undertaking a thorough analysis of future scenarios. 
72
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
TCFD

3.	 Risk and Opportunity 
Management
Climate change is one of our Principal Risks, 
recognising the urgency of the climate crisis, 
the increasing demands from stakeholders 
and the forthcoming introduction of new 
regulatory obligations and reporting 
requirements. As such the risk management 
process for climate change is now in line with 
how we manage our other Principal Risks, 
using the same likelihood and impact criteria.
Climate change related risks have been 
assessed in detail through the scenario 
analysis described in the Strategy section of 
the TCFD Report and, whilst extreme weather 
events could impact a small subset of 
Halfords stores and garages across the UK, 
our most material risks and opportunities are 
transitional, relating to the evolving regulatory 
landscape. More sustainable mobility options, 
including Electric Vehicles and E-Bikes, are 
going to be crucial over the next decade as 
the country prepares for the shift away from 
conventional fuel sources and transitions to 
a lower carbon economy. This transition will 
impact our motoring and cycling business 
in the short-, medium- and long-term, with 
increasing magnitude over time.
Our principal climate-related risks and 
opportunities, which are transitional rather 
than physical, are:
•	 The UK Government’s ban on the sale of 
new petrol/diesel vehicles by 2035 will 
necessitate a change in the products and 
services we offer. This represents both risk 
(e.g. reduced demand for engine oils) and 
opportunity (e.g. Electric Vehicle servicing 
and E-bikes).
•	 Consumers will increasingly look for more 
sustainable products and services. A 
failure to respond to this demand could 
lead to a loss in brand consideration, 
market position and revenue, however an 
opportunity exists to innovate and take 
market share in growing markets. 
•	 Failure to deliver against our climate 
strategy and net zero targets, leading to a 
loss in confidence from our stakeholders 
and potential reputational damage.
During the year, we updated our Principal 
Risk relating to ‘Climate Change and 
Electrification’, details of which can be found 
on page 85. We will continue to monitor 
climate-related risks and opportunities 
regularly, whilst ensuring that mitigation 
measures are incorporated into our strategic 
plans appropriately. We will also increase the 
frequency and depth of our conversations 
with suppliers on their own climate risk 
management. 
 halfords.annualreport2024.com
73
STRATEGIC 
REPORT

4.	 Metrics and Targets
The Group sets out below the KPIs and metrics most closely aligned to the Principal Risk relating to Climate Change and Electrification, 
as described earlier in this TCFD Report. Further environmental metrics are shared on page 68 of this Annual Report. 
Target
Progress
Scope 1 and Scope 2 
emissions
Commit to a 1.5ºC-aligned target across our 
own operations (Scope 1 and Scope 2) by 2030, 
reducing our emissions by at least 42% in this time 
period (vs. FY20 baseline).
24% reduction since FY20 baseline and 49% 
reduction on a tCO2e per £1m of revenue basis.
Further information on pages 60 and 61.
Scope 3 emissions
Engage with 67% of our suppliers (by emissions), 
with the objective of them having science-based 
targets of their own by the start of 2026. This target 
covers our Scope 3 emissions.
Reduce absolute scope 3 emissions by 25% by 
2030 from purchased goods and services, capital 
goods and upstream transportation.
We significantly improved the reporting accuracy 
of Scope 3 emissions, with over 90% now linked 
to volumetric data and emissions factors from 
respected databases.
EV Resource and 
Capability
We plan to increase resource and capability in our 
stores and garages with 100% of our technicians 
trained to service EVs in the mid-long term.
14% reduction vs. FY23
Further information on page 58.
EV Service Locations
Grow the number of fixed and mobile Electric Mobility 
servicing locations.
Broadly flat versus FY23, reducing by one to 274.
Our Scope 1 and Scope 2 target was aligned 
with the more ambitious target set out in the 
Paris 2015 agreement; to limit global warming 
to 1.5ºC. We have made good progress 
against this, having reduced our Scope 1 
and Scope 2 emissions by 24% compared 
to our FY20 baseline, despite acquisitions 
and rapid growth of our mobile van fleet. 
We recognise that reductions in Scope 1 
emissions can often result in increases in 
Scope 2. The procurement of renewable 
energy is an important part of our strategy 
in this respect, but we also continue to seek 
ways of reducing overall consumption. The 
Board is mindful of the incremental cost of 
procuring renewable energy and will continue 
to appropriately balance this with our 
emissions targets. 
We significantly improved Scope 3 reporting 
accuracy through a six-month project, 
working alongside industry experts, Carbon 
Trust. Over 90% of our Scope 3 emissions 
data is now linked to volumetric data and 
emissions factors from respected databases. 
We will use this improved data to support our 
Net Zero roadmap, providing detail on which 
tasks we will undertake to transition to a lower 
carbon economy, aligned to the Transition 
Plan Taskforce (“TPT”) Disclosure Framework.
We continue to invest in equipment and 
colleague training to ensure we have a 
sufficient number of garages capable 
of providing EV servicing. Due in part to 
colleague attrition, the number of EV-trained 
colleagues reduced by 14% to 414, whilst the 
number of EV-ready garages was broadly flat, 
at 274. Our historically significant investment 
in EV servicing means that Halfords is very 
well positioned to lead the market, but the 
pace of change in the UK vehicle market has 
slowed this year. The Government’s decision 
in September 2023 to postpone the ban 
on new petrol and diesel cars and vans by 
five years could slow down the adoption 
of electric vehicles. Halfords strategy for 
Electrification is to lead the market in EV 
Servicing, but the speed at which it rolls-out 
EV servicing capability across the business 
will be proportionate to the pace of change in 
the UK vehicle market.
74
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
TCFD

STRATEGIC 
REPORT
75
 halfords.annualreport2024.com

Reportable Segments 
The Group has two reportable segments, 
Retail and Autocentres, which are the Group’s 
strategic business units. The strategic 
business units offer different products 
and services, and are managed separately 
because they require different operational, 
technological and marketing strategies.
The operations of the Retail reporting 
segment comprise the retailing of 
automotive, leisure and cycling products 
and services through retail stores. 
The operations of the Autocentres reporting 
segment comprise vehicle servicing 
and repair performed from garages and 
vans, along with the operations of Avayler 
Software-as-a-Service products to both 
internal and external customers.
The “FY24” accounting period represents 
trading for the 52 weeks to 29 March 2024 
(“the financial period”). The comparator 
period, “FY23”, represents trading for the 
52 weeks to 31 March 2023. All numbers 
shown reflect continuing operations 
and are on a post-IFRS 16 basis and 
before non-underlying items, unless 
otherwise stated. 
In what has been a volatile macroeconomic 
environment we have delivered strong 
revenue growth, demonstrating the resilience 
of our strategically important Services and 
B2B businesses.
Jo Hartley 
Chief Financial Officer
Delivering strong 
revenue growth and 
a resilient profit 
performance
76
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CHIEF FINANCIAL  
OFFICER’S STATEMENT

Group Financial Results
FY24 
(52 weeks) 
£m 
FY23* 
(52 weeks) 
£m 
FY24 versus 
FY23 
change 
Group Revenue 
1,696.5
1,572.7
7.9%
Group Gross Profit 
822.6
768.8
7.0%
Underlying EBIT 
56.2
58.9
-4.6%
Underlying EBITDA 
183.4
182.5
0.5%
Net Finance Expense 
(13.1)
(12.1)
8.3%
Underlying Profit Before Tax 
43.1
46.8
-7.9%
Net Non-Underlying Items 
(4.3)
(7.8)
-44.9%
Profit Before Tax 
38.8
39.0
-0.5%
Income tax expense
(9.8)
(8.1)
Loss after tax from discontinued operations 
(12.1)
(2.8)
Total Profit for the period  
(continuing and discontinued)
16.9
28.1
-39.9
Underlying Basic Earnings per Share 
(continuing and discontinued)
12.2p
16.1p
-23.6%
*	
Restated, see Note 30 in the financial statements
During FY24, we committed to close our tyre supply chain operation, outsourcing the activity 
to a third-party, Bond International. The closed operations (Viking and BDL) have been 
classified as ‘Discontinued’ in our accounts for both the FY24 reported period and the FY23 
comparator. However, the total (Continuing and Discontinued) result of the Group is a more 
accurate comparison to previous market guidance. It is also more reflective of ongoing profit 
because it includes the ongoing cost of running the tyre supply chain, which in future will 
be outsourced to Bond International (with incremental cost savings for Halfords). We have, 
therefore, also presented the total Underlying Profit Before Tax (“PBT”) in this report where 
relevant. A reconciliation of Underlying PBT, from Continuing Operations to the total result, is 
provided in the table below, with further disclosure in the Glossary of Alternative Performance 
Measures on page 225. 
£m
FY24
FY23
Change %
Underlying PBT (from Continuing Operations) 
43.1
46.8 
-7.9%
Underlying loss before tax from Discontinued Operations 
(7.0) 
(2.6) 
Underlying PBT – Total Result  
(comparable to previous market guidance) 
36.1
44.2
-18.3%
FY24 underlying profit before tax (“PBT”), from continuing operations, was £43.1m, 
-£3.7m (-7.9%) vs. the prior period. On a total basis, including all operations, underlying PBT 
was £36.1m. 
Group revenue of £1,696.5 was +7.9% ahead of last year and +5.0% on a like-for-like (“LFL”) 
basis. Growth was driven by price inflation and volume market share gains, with the externally 
measured overall Cycling and Consumer Tyres markets declining in volume terms year-on-
year. The Cycling and Consumer Tyres markets were particularly weak and remain depressed 
versus pre-COVID-19 levels, down c. 30% and c. 14% respectively. Total Revenue comprised 
Retail revenue of £997.1m and Autocentres revenue of £699.4m. Retail revenues grew +2.0% 
(+£17.5m) versus FY23, a resilient performance in challenging markets. 
Motoring LFL of +4.9% was much stronger than Cycling LFL of -2.8%, reflecting a stronger 
performance in needs-based categories. Autocentre revenue was up +10.7% on a LFL 
basis, driven by market share gains in both Motoring Servicing and Consumer Tyres. The 
annualisation of the Lodge acquisition brought total revenue growth to +17.6% in FY24. 
The Chief Executive’s Statement contains detailed commentary on the trading and market 
performance in the year.
The Group gross margin % was 48.5%, 40 basis points (“bps”) lower than last year. A very 
strong performance in Autocentres, up 180 bps, was offset by a 190 bps decline in Retail. 
Further explanations in each segment are provided below.
Underlying Profit Before Tax
£43.1m
Dividend Per Share 
(Full-Year)
8.0p
Total operating costs were £766.4m, of which 
Retail comprised £430.4m, Autocentres 
£330.3m and unallocated costs £5.7m. 
Unallocated costs represent amortisation 
charges in respect of intangible assets 
acquired through business combinations. 
Group operating costs increased by +8.0% 
in the year, slightly more than total revenue 
growth of +7.9%, and as a result, operating 
costs as a percentage of revenue increased 
from 45.1% to 45.2%. Of the +8.0% 
year-on-year increase, +1.7% was due to 
the annualisation of the Lodge acquisition, 
which was completed in October 2022. The 
remaining increase was driven by several 
factors, including significant cost inflation in 
energy and labour, and investment to support 
the growth of the business.
Group Underlying EBIT decreased by -4.6% 
to £56.2m, whilst net finance expense 
of £13.1m was 8.3% higher than FY23, 
reflecting higher interest rates and debt 
levels. Underlying Profit Before Tax for the 
year decreased -7.9% vs FY23. 
Non-underlying items from Continuing 
Operations totalled a £4.3m debit in the year, 
further details of which are provided below. 
FY23 non-underlying items totalled a net 
debit of £7.8m, comprised of restructuring 
costs, acquisition costs and the costs 
associated with property closures. After 
non-underlying items, Group Profit Before 
Tax from Continuing Operations was £38.8m, 
-0.5% lower than last year.
 halfords.annualreport2024.com
77
STRATEGIC 
REPORT

Autocentres 
FY24 
(52 weeks) 
£m 
FY23 
(52 weeks) 
£m 
FY24 versus 
FY23 change 
% 
Revenue 
699.4
594.8
+17.6%
Gross Profit 
351.1
288.0
+21.9%
Gross Margin %
50.2%
48.4%
+180 bps
Operating Costs 
(330.3)
(282.3)
+17.0%
Underlying EBIT 
20.8
5.7
+264.7%
Non-underlying items 
(2.8)
(7.1)
EBIT 
18.0
(1.4)
Underlying EBITDA 
60.2
41.9
+43.7%
*	
Restated, see Note 30 in the financial statements. FY23 has also been restated for comparability following a change 
in categorisations of supplier income in FY24 the impact on FY23 is a decrease in Gross profit of £4.7m and a 
corresponding reduction in operating costs. There is no impact on the overall Group results from this adjustment.
Reconciliation of Underlying EBIT:
£m
FY24
FY23
Change %
Underlying PBT (from Continuing Operations) 
20.8
5.7
+264.7%
Underlying loss before tax from Discontinued Operations 
(7.0)
(2.6)
Underlying EBIT – Total Result (Continuing plus 
Discontinued operations)
13.8
3.1
+345.2%
Overall revenue growth in FY24 was once again very strong, up +17.6% year-on-year and 
+10.7% on a LFL basis. Non-LFL growth came from the annualisation of the Lodge acquisition 
that was completed in October 2022. 
LFL growth was strong in all three Autocentres businesses: Consumer Garages and Vans, 
Commercial Fleet Services (“CFS”), and Avayler. In Consumer Garages, we took share in both 
the Tyres and Servicing markets. CFS revenues grew +5.3% on a LFL basis, leveraging its 
scale and national presence to win new contracts. For Avayler, revenue increased to £6.6m in 
FY24, including the recognition of intercompany sales to other Halfords Group companies. 
The business signed agreements with four new customers in the period, including a 15-year 
commercial agreement with Bridgestone.
Autocentres’ gross margin of 50.2% was 180 basis points higher than FY23. The success 
of our Better Buying programme and several pricing initiatives more than offset the dilutive 
impact of the Lodge acquisition.
Operating costs were £330.3m, +£48.0m (+17.0%) higher than FY23. Of this increase, +4.2% 
was due to the annualisation of the Lodge acquisition, with the remaining increase due to the 
impacts of inflation on staff and store operations costs. The total increase in operating costs 
was lower than total revenue growth, resulting in operating costs as a percentage of revenue 
decreasing from 47.5% to 47.2%, with cost savings partly offsetting inflation. 
Autocentres’ underlying EBIT (Continuing Operations) was £20.8m, a significant increase on 
£5.7m in FY23. Including Discontinued Operations, FY24 EBIT was £13.8m, again a significant 
increase on FY23 of £3.1m. This excellent performance reflected the delivery of several 
initiatives in our Consumer Garages and Vans business, including improved utilisation of 
colleagues and garage capacity, the launch of dynamic pricing for MOT and tyre bookings, and 
an improved customer proposition for same-day tyre fitting.
Retail
FY24 
(52 weeks) 
£m 
FY23 
(52 weeks) 
£m 
FY24 versus 
FY23 Change 
%
Revenue 
997.1
977.9
+2.0%
Gross Profit 
471.5
480.7
(19%)
Gross Margin %
47.3%
49.2%
(190 bps)
Operating Costs 
(430.4)
(417.4)
3.1%
Underlying EBIT 
41.1
58.6
(29.8%)
Non-underlying items 
(1.5)
(0.7)
EBIT 
39.6
57.9
(31.6%)
Underlying EBITDA 
123.2
140.6
(12.4%)
*	
Restated, see Note 30 in the financial statements. 
FY23 has also been restated for comparability 
following a change in categorisations of supplier 
income in FY24 the impact on FY23 is an increase in 
Gross profit of £4.7m and a corresponding increase 
in operating costs. There is no impact on the overall 
Group results from this adjustment.
Revenue of £997.1m was up +1.8% on 
the prior year and +2.2% on a LFL basis. 
Like-for-like revenues and total sales revenue 
mix for the Retail business are split by 
category below: 
FY24 
LFL vs 
FY23 
(%) 
FY24 
Total 
sales mix 
(%) 
FY23 
Total 
sales mix 
 (%) 
Motoring
+4.9%
64.6
63.0
Cycling
(2.8%)
35.4
37.0
Total
+2.2%
100.0
100.0
Retail Motoring saw a resilient revenue 
performance, with LFL revenue growth 
of +4.9%, significantly better than market 
volume growth of +0.9%. Performance was 
stronger in the first half at +8.2% LFL, with 
slower growth of +1.7% LFL in H2, driven by 
milder and wetter weather year-on-year. In 
an ongoing cost-of-living crisis, needs based 
spend categories performed better, with 
3Bs and parts growing strongly but more 
discretionary categories such as technology 
and touring suffering from weak demand.
LFL revenue decline in Cycling was -2.8%.
Whilst we grew market share, the market itself 
was very challenging, with market volumes 
declining -4%. Cycling market volumes, as 
reported by the Bicycle Association, are now 
c.30% below pre-covid levels.
The Motoring sales mix increased to 64.6% 
during the year, underlining the importance of 
the Group’s strategy. 
Gross margin was (190 bps) lower than FY23, 
driven by foreign exchange headwinds in 
relation to the weakening of Pound Sterling 
hedges versus the US dollar, and the dilutive 
impact of increased Cycling promotional 
activity in response to market consolidation. 
This was partly offset by very strong results 
from our Better Buying programme.
Retail operating costs before non-underlying 
items were £430.4m, +2.0% higher than 
the prior year. Significant cost inflation, 
notably in energy costs and salary expenses 
relating to rises in the national minimum 
wage, were offset by cost savings and lower 
incentive payments. 
Underlying EBIT of £41.1m was (29.8%) 
lower than FY23, reflecting declining market 
volumes and related margin pressure, FX 
headwinds, and significant cost inflation. 
78
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CHIEF FINANCIAL  
OFFICER’S STATEMENT

Portfolio Management 
The total number of fixed stores or garages 
within the Group stood at 1,026, with a 
further 196 HME vans, 9 Cycling Vans, 495 
Commercial vans and 68 vans supporting 
mobile tyre fitting in National and Lodge as 
at 29 March 2024. The portfolio comprised 
387 stores (end of FY23: 395), 90 commercial 
garages (end of FY23: 90) and 549 consumer 
garages (end of FY23: 552). 
The following table outlines the changes in 
the portfolio over the year: 
Stores
Garages 
Vans 
Relocations 
–
1
– 
Leases 
renegotiated 
43
63
– 
Refreshed 
–
–
– 
Openings/
Acquisitions 
–
4
20
Closed 
8
7
8 
In Retail, eight stores closed during the year. 
When analysing the anticipated sales transfer 
to other channels and neighbouring stores, it 
was considered more profitable to the Group 
to close these stores and reduce the overall 
cost base.
The number of lease expiries, or breaks under 
option, increases significantly within the next 
five years. Retail will see more than three 
quarters of stores experience optionality 
within five years, allowing for a high degree 
of flexibility within the estate. The average 
remaining lease length in Retail is 2.9 years.
Within Autocentres, four garages were 
opened or acquired and seven garages were 
closed, taking the total number of Autocentre 
garages to 549 as at 29 March 2024 (end of 
2023: 552).
With the exception of nine long-leasehold 
and three freehold properties in Autocentres, 
the Group’s locations are occupied under 
short-term leases, the majority of which are 
on standard lease terms, typically with a 
five to 15 year term at inception and with an 
average lease length of under six years. 
“Our Autocentres segment continued to grow very 
strongly, with revenue up +17.6% and underlying 
EBIT more than tripling, demonstrating the 
resilience of motoring services and the significant 
profit potential of this business. ”
Net Non-Underlying items
The following table outlines the components of the non-underlying items recognised in the 
52 weeks ended 29 March 2024: 
FY24 
£m 
FY23 
£m 
Organisational restructure costs (a)
7.7
6.1
Acquisition and investment-related fees (b)
1.0
1.9
Closure costs (c)
(4.4)
(0.2)
Non-underlying items before tax relating to continuing 
operations
4.3
7.8
Tax on non-underlying items (d)
(0.5)
(1.1)
Non-underlying items after tax relating to continuing 
operations
3.8
6.7
Non-underlying items after tax relating to discontinued 
operations
6.9
0.2
Total Non-underlying items
10.7
6.9
a.	During the period organisational restructure costs of £7.7m were incurred. Costs in relation 
to these activities comprise:
•	 £2.0m (2023: £1.6m) linked to the ongoing warehouse management system replacement 
programme. This project and associated costs are expected to conclude in FY25;
•	 £1.9m (2023: £2.9m) of redundancy costs primarily within the support centre;
•	 £1.9m relating to professional fees incurred on a one-off strategic review of procurement 
and related activities undertaken to drive future cost efficiency. The strategic review is 
now complete and no further costs will be incurred;
•	 £1.1m of professional fees incurred in relation to restructuring the Avayler operation. 
The restructuring is now complete and no further costs are anticipated;
•	 £0.5m (2023: £1.2m) due to the new system and financial dual running costs incurred in 
relation to the integration of National Tyres; and
•	 £ 0.3m (2023: £0.4m) relating to master data management systems upgrade. This project 
and associated costs are expected to conclude in FY25.
b.	Acquisition and investment-related costs of £1.0m (2023: £1.9m) incurred in the period 
primarily comprise professional fees and acquisition costs in relation to the acquisitions 
of National and the Lodge, where no further costs will be incurred in relation to these 
acquisitions.
c.	During periods ended 3 April 2020 and 2 April 2021 the Group completed a strategic review 
of the profitability of its physical estate and subsequently closed a number of stores and 
garages. Assets were impaired and costs associated with ongoing onerous commitments 
under lease agreements and other costs associated with the property exits were provided 
for. In the current period, £4.4m (2023: £0.2m) was credited to the income statement 
within non-underlying items following lease disposals and subsequent review of provisions 
required. In future periods, further lease disposals may be negotiated. This may result in 
further amounts being released to the income statement due to the significant estimation 
uncertainty over the timing of exits and the final negotiated settlements.
 halfords.annualreport2024.com
79
STRATEGIC 
REPORT

d.	The tax credit of £0.5m represents 
a tax rate of 11.6% applied to non-
underlying items. The prior period 
represents a tax credit at 13.8% applied 
to non-underlying items. The effective tax 
rate of is lower than the UK corporation 
tax rate principally due to the impact of 
disallowed expenses being incurred.
Discontinued Operations
On 25 January 2024, the Group announced 
its intention to enter into a strategic 
partnership with specialist tyre distributor 
Bond International and to close its existing 
tyre operation. As a consequence, on 
22 February 2024, the Group sold Birkenshaw 
Distributors Limited (“BDL”) and the wholesale 
customers of Stepgrades Motor Accessories 
Ltd (“Viking”) to R & R C Bond (Holdings) 
Limited (“Bond International”). On 22 March 
2024, the remaining principal operations of 
Viking ceased.	
	
	
	
The events noted above result in Viking 
and BDL being treated as a discontinued 
operation in the period. The results of the 
business have been shown separately 
from the continuing business for all 
periods and presented on the face of 
the income statement and within other 
disclosures in the financial statements as a 
discontinued operation.
Viking and BDL combined for a £7.0m 
pre-tax loss on discontinued operations in 
the period (before non-underlying items). 
Non-underlying items relating to discontinued 
operations amounted to £9.4m, comprising 
of £11.9m of organisation restructuring costs 
and £2.5m of gains on disposal.
Net Finance Expense 
The net finance expense (before non-
underlying items) for the 52 weeks ended 
29 March 2024 was £13.1m (FY23: £12.1m) 
reflecting an increase in bank interest due to 
rate increases and an increase in the overall 
debt position.
Taxation 
The taxation charge on profit for the 
52 weeks ended 29 March 2024 was £10.3m 
(2023: £8.2m), including a £0.5m credit 
(2023: £1.1m credit) in respect of tax on 
non-underlying items. The effective tax rate 
of 26.2% (2023: 20.7%) is higher than the 
UK corporation tax rate principally due to the 
impact of prior period adjustments arising 
from a review which led to RDEC and Super 
Deduction claims on the Group’s software 
expenditure for the periods ending 1 April 
2022 and 31 March 2023, offset by non-
deductible depreciation in the period.
Earnings Per Share (“EPS”) 
Underlying Basic EPS was 12.2 pence 
and after non-underlying items 7.8 pence 
(FY23: 16.1 pence and 12.9 pence after 
non-underlying items), a –23.6% and -39.5% 
movement on the prior year. Basic weighted-
average shares in issue during the year were 
217.4m (FY23: 217.4m). 
Dividend (“DPS”) 
Following the payment of an interim dividend 
of 3.0p per share on 19 January 2024, the 
Board is proposing an FY24 final dividend of 
5.0p per share (FY23: 7.0p per share) which 
will absorb an estimated £11.0m (2023: 
£15.3m) of shareholders’ funds. It will be 
paid on 13 September 2024 to shareholders 
who are on the register of members on 
9 August 2024.
Capital Expenditure 
Capital investment beyond maintenance 
expenditure prioritises projects which align 
to the Group’s strategy and deliver attractive 
returns that exceed the cost of capital.
Capital investment, excluding right of use 
assets, in the 52 weeks ended 29 March 
2024 totalled £43.7m (FY23: £48.1m) 
comprising £22.8m in Retail and £20.9m 
in Autocentres. Within Retail, £9.3m (FY23: 
£3.6m) was invested in stores and £13.5m 
in technology systems, which included the 
continued development of the Group’s web 
platforms and further investment in our 
data capability. 
The capital expenditure in Autocentres 
principally related to £10.6m on the 
replacement of garage equipment 
and vehicles, and £10.3m on software 
development primarily on our Avayler 
platform and further development of our 
digital garage workflow system. 
Inventories 
Group inventory held as at the year-end was 
£237.5m (FY23: £256.2m). Retail inventory 
decreased to £178.8m (FY23: £202.8m) as a 
result of strong stock management.
Autocentres’ inventory increased to £58.7m 
(FY23: £53.4m) to support the increased 
sales volumes in this segment.
Cashflow and Borrowings 
Adjusted Operating Cash Flow was £185.6m 
(FY23: £164.4m), reflecting a working capital 
inflow of £14.4m, driven by the reduction in 
inventory levels in the year. After acquisitions, 
taxation, capital expenditure and net finance 
costs, Free Cash Flow of £29.4m (FY23: 
£2.7m) was generated in the year. Group net 
debt was £315.3m (FY23: £348.7m).
Jo Hartley
Chief Financial Officer
17 July 2024
80
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CHIEF FINANCIAL  
OFFICER’S STATEMENT

Risk management is intrinsic to the delivery of our purpose, which is  
“to inspire and support a lifetime of motoring and cycling”. 
Our approach to risk supports informed decision making by identifying, assessing, and responding effectively to threats and opportunities. 
The Board oversees the management of risk and the identification of Principal risks and sets and monitors the appetite for risk in the pursuit of 
the Group’s strategic objectives. 
Risk Management Framework
The Audit Committee, on behalf of the Board, has responsibility for maintaining oversight of the Group’s framework for risk management. 
The framework comprises the process for the identification, measurement, response, and continual monitoring and reporting of risk, informed 
by a top-down bottom-up governance approach following the three lines model. Applying the risk management framework provides a clear 
perspective for the evaluation of risks and opportunities and emerging risks across all our operations.
Risk management governance
Board
•	 Responsible for risk management.
•	 Sets and annually reviews the risk appetite for the Group.
•	 Reviews recommendations from the Audit Committee 
and Executive Committee on risk governance and 
internal controls.
Executive Committee
Manages the risk management process.
•	 Responsible for application of risk management. 
•	 Leads and directs achievement of business objectives in line 
with policies, procedures, and risk appetite.
•	 Makes recommendations to the Board on the Group’s 
risk appetite, principal risks, controls and mitigations and 
emerging risks.
Audit Committee
•	 On behalf of the Board, has responsibility for maintaining 
oversight of the Group’s framework for risk management.
•	 Assists the Board in achieving its obligations under the 
UK Corporate Governance Code (the “Code”) in risk 
management and internal control.
Operational Board
Responsible for applying risk management process.
•	 Provides timely risk management updates to the 
Executive Board.
•	 Applies risk management process (identify, assess, respond 
& report) at functional level.
•	 Maintains risk registers with continuous improvement of 
mitigation plans and controls.
Internal Audit and Risk
Independent and objective assurance of  
risk management process.
•	 Completion of annual risk based internal audit plan.
 halfords.annualreport2024.com
81
STRATEGIC 
REPORT
RISK 
MANAGEMENT

Principal Risks
The Audit Committee reviews the effectiveness of the risk management processes and monitors the assessment of the Group’s principal 
risks, reflecting on external factors and their impact on strategic priorities. Each principal risk has an Executive owner and is included within 
a Corporate Risk Register, which is subject to a “top-down” review. Function risk registers are maintained to provide greater granularity, 
a “bottom-up” perspective and a further means to identify emerging risks. 
Principal risk changes: The thirteen principal risks identified in FY23 have been condensed into eleven risks in the current year. There are no 
other changes to the principal risks.
Emerging Risks
The evolution of risk is actively considered 
at Board level and across the senior 
management team. Emerging risk is seen as 
an undefined risk that may eventually develop 
to materially impact the business in the future. 
The Audit Committee receives presentations 
from contributors to the risk management 
process with insight on key risk themes such 
as economic, environmental, technological, 
societal, and geopolitical risks. Where 
appropriate, the views of external subject 
matter experts or stakeholders may be sought. 
The following emerging risks have been 
identified: -
•	 Generative AI offers great potential for 
creativity, automation, and problem-
solving, which could create a competitive 
advantage. Its misuse poses significant 
risks including misinformation, privacy 
breaches, biased outcomes, and security 
threats.
•	 Climate extremes leading to extreme 
weather events could impact our 
customers, colleagues, and supply 
chain partners and lead to different and 
more volatile patterns of trade requiring 
enhanced operational resilience.
•	 Rising geopolitical tensions could lead to 
supply chain disruption through impacting 
transportation costs or the supply of 
certain products.
•	 Market recovery may be slower than 
previously anticipated, requiring revisions 
to plans and forecasts.
Report and Monitor
Functional and programme risk 
registers are monitored, and 
movements escalated. The 
Executive Board holds a quarterly 
Risk Committee to consider risk 
trends, performance against 
risk appetite and emerging risks. 
Performance of the Group’s  
risk framework is considered at  
each Audit Committee meeting  
and principal risks are reviewed  
twice annually.
Respond
Risks are reviewed against appetite and 
appropriate action is determined. A risk can 
be mitigated through the existing control 
environment, or adjustments might be required 
to improve control effectiveness. In certain 
cases, a risk may be accepted in accordance with 
appetite guidance. 
Identify
To identify risk a top-down and 
bottom-up approach is applied 
covering all levels of the Group, 
from Board and Executive review 
of strategy to transformation 
programmes and functional 
operations. There is regular 
review of recorded risks for 
changes and the capture of new 
risks at the inception of new 
projects or processes. 
Measure
Risks are reviewed for movements in 
impact and likelihood with standardised 
scoring applied to track against risk 
appetite. The impact of a risk event is 
measured against its Financial, Operational, 
Compliance or Strategic significance.
Appetite
Risk appetite is an expression of the quantum of risk that the 
Group is willing to take to achieve its strategic objectives aligned 
with its culture. The Board has determined a risk appetite, reviewed 
annually, that articulates the appropriate level of risk that should 
be taken in pursuit of the Group’s strategic objectives without 
threatening its business model or the long-term interests of 
shareholders. Where there has been an increase in a risk that takes 
it outside appetite, the risk management governance process will 
be applied to assess what response is necessary and whether 
additional mitigating actions are required to bring the risk within the 
appetite determined by the Board. 
A dashboard of risk appetite measures for each principal risk is 
reviewed by the Executive Board quarterly. The measures highlight 
the trend for principal risks against appetite levels and whether an 
adjustment to the risk response is needed to stay within appetite 
and on course to achieve our strategic priorities. 
Report and Monitor
Appetite
Report 
and 
Monitor
Identify
Measure
Respond
82
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
PRINCIPAL 
RISKS

Capability and capacity to effect change
Risk direction
Failure to build sufficient capacity and capability (in terms of our people, processes, and systems) to successfully 
implement the transformation and change required across the business, may result in the expected benefits of our 
strategy not being delivered, thereby risking the future sustainability of the business. 
Given the material consumer and inflationary headwinds facing the business, risk has increased given the requirement 
to focus more resource on business-as-usual trading.
Mitigation
Current year priorities
We have a dedicated Transformation and Change team supported by 
experienced Programme and Project Managers to drive the delivery of 
change projects.
In line with our IT roadmap, we continually advance the automation of 
standardised processes to improve efficiency and consistency, applying a 
dedicated project management tool.
An established transformation program management office applies robust 
approval processes, allocation of resource, benefit measurement and the 
monitoring of progress against the plan for all projects. 
Dedicated best practice sessions are routinely held within the 
Transformation community to foster a culture of continuous learning and 
knowledge-sharing amongst our change professionals.
•	 FY25 plan deliberately focussed on fewer change 
projects. 
•	 External capacity and capability increasingly sought to 
support major change projects.
•	 Comprehensive change management strategy and 
plan embedded across the organisation through a 
series of workshops and training sessions led by the 
Transformation office; for example, launching awareness 
and training programs to build change readiness.
•	 A greater focus on tracking and realising benefits for our 
customers, colleagues and shareholders through the 
design and launch of a Transformation KPI dashboard 
which feeds into our strategic meetings to give greater 
visibility of ability and success in delivering change.
Stakeholder support and confidence in strategy
Risk direction
Failure to secure and maintain our stakeholders’ (investors, suppliers, colleagues) support for our strategy, may mean 
they lose confidence in the business and withdraw their resources.
Mitigation
Current year priorities
Throughout the year we have engaged with internal and external 
stakeholders to ensure their understanding of our performance and strategy.
The Capital Markets Day (“CMD”) in April 2023 provided further support and 
understanding of the long-term prospects of the business.
We know from broker feedback that the majority of investors understand our 
strategy well and have confidence that it is the right one.
•	 Maintain progress on the delivery of our strategic 
objective to inspire and support a lifetime of motoring and 
cycling.
•	 Continue to proactively engage with our investors 
through scheduled events and transparent and regular 
communication, demonstrating progress against the 
targets laid out at our CMD. 
•	 Enhance understanding of colleague engagement 
through more regular surveys throughout the year and 
continuing our regular listening groups.
Key to risk direction
 Risk increasing
 Risk decreasing
 No risk movement
N  New risk
 halfords.annualreport2024.com
83
STRATEGIC 
REPORT

Value Proposition
Risk direction
With customers under continuing pressure in a cost of living crisis and a consolidating cycling market, it is important we 
offer value for money for our products and services to retain and grow share in challenging markets. There is a risk that 
investing in price without a corresponding increase in volume leads to a diminution of financial returns. Equally increasing 
prices outside of market movements, could create further damage to our value perception. With significant consumer 
and inflationary headwinds causing pressure on short-term profit targets, balancing value perception with passing 
through inflation becomes even more critical.
Mitigation
Current year priorities
We have continued to invest to support customers in a cost of living crisis, 
reducing prices across our motoring category and maintaining our “Never 
Beaten On Price” campaign on a number of fitted product categories, 
including tyres. In addition, we have improved and scaled our financial 
services offering and grown our Cycle2Work proposition and pre-pedalled 
bike offer, making our products accessible to more customers and creating 
further differentiation in our proposition.
Our value proposition is enhanced by the Halfords Motoring Club, which 
grew to over 3m members during the year. This provides members with 
access to a wide range of benefits and discounts.
Our promotional strategy supports customers at key moments (for example 
pay weekends) to ensure we optimise the attractiveness of our offer when it 
matters most to customers.
Our strategy emphasises the importance of creating value for customers by 
delivering advice and services alongside the sale of a product and during the 
year we introduced dynamic pricing in garages to enable customers to make 
their own choices around price and convenience. 
Quality is a key part of the value equation and customers rated this well 
with Trust Pilot scores in Tredz and HME at 4.8 and 4.7 respectively and an 
average product review rating of 4.3 in retail. 
•	 Maintaining an agile and well-communicated trading plan, 
flexing promotions to respond to the changing customer 
landscape and ensuring all promotions are effective. 
•	 Scaling and leveraging the insight from our Halfords 
Motoring Club to further improve value for our members 
with differentiated offers. 
•	 Further application of data science to adjust for real-time 
demand enabling smart pricing while progressing the 
creation of an intelligent pricing and promotion engine to 
support a greater level of sophistication in our tools for 
the mid-term.
•	 Further progressing our Better Buying programme, 
providing an ongoing opportunity to ensure we support 
customers with the right value proposition.
Brand appeal and market share
Risk direction
Investment in awareness of our brand and our services is insufficient to increase our brand relevance, in which case we 
will be unable to maintain and grow our customer base or improve our customer shopping frequency and spend and 
correspondingly build market share. Cost inflation puts growing pressure on our marketing cost as a % of sales. 
Mitigation
Current year priorities
We have grown volume market share in each of our core categories of 
Motoring Product, Cycling, Tyres and Motoring Servicing during FY24 
through leveraging our strong customer proposition and through effective 
use of data and Customer Relationship Management (“CRM”) to increase 
personalisation and relevance. 
Consistent investment in our Group online platform has supported 
awareness and consideration of our Group proposition.
Our Cycle2Work platform was enhanced during the year to create a more 
accessible proposition for employers, particularly SMEs. 
The Halfords Motoring Club continued to introduce new customers 
to Halfords, increasing brand appeal through our free and premium 
propositions. It also supported a strong and cost-effective acquisition 
channel for Autocentres from Retail, through cross shop.
•	 Further development and growth of the Halfords 
Motoring Club.
•	 Greater personalisation through enhanced data analytics 
to target priority segments with more relevant messages 
and using a wider channel approach. 
•	 Consolidation and tender of media buying partners 
across the group to support the efficiency and 
effectiveness of our spend.
•	 Continued expansion into new markets such as car parts 
and further extended range opportunities.
•	 Continued digital investment to further drive our unique 
omnichannel proposition. 
84
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
PRINCIPAL 
RISKS

Key to risk direction
 Risk increasing
 Risk decreasing
 No risk movement
N  New risk
Climate Change and Electrification
Risk direction
The long-term success of our business depends on us operating sustainably in environmental, social, and financial 
aspects. All our stakeholders must have confidence that we are acting responsibly in both our own operations and our 
global supply chains. Failing to meet these expectations is likely to damage the Group’s brand reputation and financial 
performance. 
Climate change will have a significant effect on the Group, with transition risks likely to have the biggest impact. The 
ban on the sale of new internal combustion engine (“ICE”) vehicles in the UK from 2035 will necessitate a change in the 
products and services that we provide, including for example, reduced demand for products such as engine oil and 
certain car parts. There will also be significant opportunities for Halfords, particularly in the servicing of Electric vehicles, 
in addition to alternative transport options such as Electric Bikes and Scooters.
With regards to physical risks, extreme weather such as flooding could impact our global supply chains and disrupt our 
ability to trade in stores and garages in the UK. 
Finally, a failure to deliver against our own Net Zero carbon reduction targets could lead to a loss in confidence from our 
stakeholders and potential reputational damage. 
Mitigation
Current year priorities
The Group regularly identifies its most material climate-related risks and seeks to adjust 
strategy, investment, and resources to mitigate these. Governance is led by the ESG 
Committee (a Board committee), which receives regular updates on material risks and 
opportunities and the progress made on mitigating actions. 
The Group had made good progress against its carbon emission targets, seeing a 24% 
absolute reduction in its Scope 1 and Scope 2 emissions versus the FY20 baseline, or 49% 
relative to revenue. This has been enabled by capital investment to support the roll-out of 
LED lighting in stores and garages, and the switch to renewable energy for over 88% of the 
Group’s electricity needs. We significantly improved Scope 3 reporting accuracy during 
FY24, such that now over 90% of our Scope 3 emissions data is linked to volumetric data 
(primarily purchasing volumes) and emissions factors from respected databases, rather 
than based on supplier spend information. 
We have made progress on our Electrification strategy, which aims to leverage our market 
leadership in Motoring Servicing and Cycling to support our customers through the 
transition to electric vehicles, bikes, and scooters. We continue to monitor the landscape 
to best understand emerging trends and the speed of EV adoption in the UK, to ensure the 
Group invests appropriately in support of its Electrification strategy. 
•	 Create a strategy and roadmap for 
Halfords Net Zero plan, aligned to the 
requirements of the Transition Plan 
Taskforce (“TPT”) Disclosure Framework
•	 Host a supplier conference, collaborating 
with suppliers to improve their sustainability 
ratings, focussing on those with lower 
scores clarifying our repercussions and 
incentives for supplier engagement.
•	 Ensure readiness for increasing complexity 
of IFRS S1 and S2 reporting requirements.
•	 Deliver Climate change training for key 
leaders.
•	 Amend our company car policy, to enable 
increased EV adoption rates, reducing 
Scope 1 emissions.
•	 Launch EV capability into HME.
 halfords.annualreport2024.com
85
STRATEGIC 
REPORT

Sustainable Business Model
Risk direction
In recent years the business has faced unprecedented inflationary headwinds and challenging consumer markets 
driven by a cost of living crisis. Unless we can mitigate the significant levels of cost inflation (through cost mitigation 
and savings, growth in new business areas, and increasing selling prices), we will be unable to maintain a sustainable 
business model.
Mitigation
Current year priorities
Over half of the Group’s turnover is from service-related sales, providing improved revenue 
stability with reduced exposure to discretionary sales.
Low average retail lease lengths <3 years provide optionality over the size of the Retail 
estate and therefore, our fixed cost base.
Energy volumes are purchased in advance according to a risk management strategy, 
bringing cost certainty. 
Our cost and efficiency program delivered over £35m of savings in the year, well ahead 
of target, driven by the success of our externally supported Better Buying program and 
numerous other cost-saving initiatives.
The tyre supply chain has been re-organised through the closure of Viking and outsourcing 
of services to 3PL provider Bond International on a long-term contract, which will result in 
considerable cost savings in FY25.
Detailed price/elasticity analysis helped to optimise consumer pricing decisions.
Supplier relationships were optimised to realise value from supplier contributions/support. 
A US dollar hedging programme is maintained to identify, monitor, report and actively 
manage the foreign exchange exposures of the Group. 
Debt facilities were extended to 2028 maturity with a further one-year extension option. 
•	 Deliver the FY25 Cost reduction plan 
targeting over £30m of savings in FY25, 
with the Better Buying program entering its 
second year.
•	 Continue to optimise profit, through 
balancing price decisions and sales volume 
using pricing science.
•	 Identify further medium-term opportunities 
to reduce cost through the use of data and 
AI and through optimising the end-to-end 
operating model.
•	 FX hedging program in place with the 
majority of US dollar currency required for 
FY25 purchases already secured.
•	 Continue to review all leases at renewal, 
with underperforming stores and garages 
closed where this provides the best 
economic outcome.
Regulatory and Compliance
Risk direction
A failure to adhere to our legal and/or regulatory obligations for some, or all, of the Group’s activities leads to an inability 
to meet our responsibilities to stakeholders and/or the imposition of financial penalties, placing a strain on the business. 
Regulatory requirements continue to increase, which, together with the increased scale and complexity of the Group, 
result in an increase in risk.
Mitigation
Current year priorities
There is continual monitoring of legal and regulatory developments for all regions where 
the Group operates. A suite of policies sets out the Group’s commitment to conduct its 
business with honesty and integrity. The senior leadership team communicates tone from 
the top to provide guidance to colleagues on all policy commitments. 
All new colleagues are inducted into our mandatory training programme with recurring 
refresher courses to observe our regulatory responsibilities across areas such as health 
and safety, data protection and security, and financial conduct. 
We have a code of conduct with our suppliers whom we monitor for compliance across 
ethics: environmental management; labour practices; and human rights. 
Health and safety, Data Protection and Financial Conduct Authority compliance are 
examples of areas managed by experts reporting to dedicated committees with 
representatives across the business to assess our regulatory rigour. Regular horizon 
scanning is undertaken to capture new regulations and requirements.
An established whistleblowing process enables colleagues to report suspected or actual 
wrongdoing in confidence.
•	 Monitor legal and regulatory developments 
for all regions where the Group operates.
•	 Continuous improvement of the Group’s 
framework for compliance with regulatory 
and statutory obligations. 
•	 Third-party services and supplier 
onboarding due diligence enhancements 
for improved operational resilience and 
reduced risk of harm to our customers.
•	 Management Information enhancement 
and improved root cause analysis for 
the identification and early resolution of 
compliance breaches.
86
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
PRINCIPAL 
RISKS

Service Quality 
Risk direction
The services we provide fall below the quality standards to which we are committed, placing customers at risk of harm. 
Mitigation
Current year priorities
All colleagues are provided with dedicated training and adhere to established quality 
control and safety procedures. We also have a dedicated compliance team monitoring our 
regulated activities.
A continual programme of quality assessment specifically focussed on service standards 
is conducted across our garage services network by regional management with guidance, 
training and process improvements applied as necessary.
In Autocentres our digital operating platform, PACE, enables increased workflow, 
productivity, and quality assurance. PACE drives service quality by requiring quality controls 
to be completed for all workshop colleagues as determined by the Technician Quality 
Rating. All our Quality Controllers follow an approved training pathway and receive refresher 
training annually.
We have a Retail, HME and Garages Contact Centre that provides a level of call answer 
rates that ensures we can provide a quality service to our customers whatever channel 
they choose.
•	 External Mystery Shop programs in place 
to monitor performance across stores and 
garages with support and guidance for 
colleagues.
•	 Continued development of quality control 
procedures across all service offerings with 
appropriate technical training.
•	 Complaints programme implemented 
with root cause analysis and learnings by 
garage, supported by a specific process 
for High Priority Failures. 
•	 Enhanced induction programme for 
colleagues providing servicing expertise. 
Cyber Security and IT Infrastructure
Risk direction
If we fail to sufficiently prevent, detect, and respond to cyber incidents and attacks, they may result in disruption of service, 
compromise of sensitive data, financial penalties from regulatory authorities, financial loss, and reputational damage.
Failure in our IT system(s) may cause significant disruption to, or prevention of, normal business-as-usual activities. 
External threat levels continue to accelerate, resulting in this risk worsening despite continued investment.
Mitigation
Current year priorities
A programme of activities has matured our Governance, Risk and Compliance function 
and improved our visibility, alerting and reporting to provide a pro-active approach to cyber 
security. 
A fully functional Security Operations Centre operated by our third-party partner, TCS, 
provides real-time analysis of threats and a heavy focus on incident management ensuring 
detection and response times are reduced. TCS provides first line assurance security 
operations capabilities including vulnerability management, email filtering, and website security.
A perpetual education and awareness campaign is provided to all colleagues. Regular briefings 
promote an understanding of the risks to our data and the benefits of good security practices.
The Audit Committee is regularly briefed by senior technology management on the 
business’ cyber security framework.
Several of our critical applications have been migrated into the cloud for enhanced availability. 
Halfords key trading systems not migrated to the cloud are hosted securely within data 
centres operated by a specialist company. These systems are supported by disaster recovery 
arrangements, including comprehensive backup, patching and fall-back strategies.
Monitoring and early detection of issues has been enhanced through the roll-out of AI, 
enabling faster resolution and better application availability.
An improved major incident process was put in place this year, enabling faster root cause 
analysis and implementation of remedial steps to prevent future recurrence.
•	 Roll-out of ISO 27001 compliant 
Information Security Management 
System to improve governance, risk and 
compliance oversight, using best practice 
external advice.
•	 Develop a new Privacy and Security 
strategy to build on previous work and 
create a new security roadmap.
•	 Completion of the transformation to a 
software defined network, delivering 
improved capacity across stores and 
garages
•	 Further migration of core systems to our 
cloud environment, including the move of 
SAP and Iserve in FY25
•	 IT infrastructure on a modernised network 
of cloud-based computing systems. In 
the medium-term, we will leverage the 
infrastructure to refresh legacy software 
and the retail hardware (tills).
Key to risk direction
 Risk increasing
 Risk decreasing
 No risk movement
N  New risk
 halfords.annualreport2024.com
87
STRATEGIC 
REPORT

Culture / Colleague Engagement and Skills
Risk direction
We fail to maintain an engaging, inclusive culture where colleagues feel connected to their manager, team and the 
business as part of ‘One Halfords Family’. 
We are unable to attract, recruit, develop and retain colleagues with the required skills, now and for future growth.
Attracting skilled colleagues remains as challenging as it was a year ago. Risks around colleague engagement have 
increased reflecting a challenging trading environment making it harder to hit targets.
Mitigation
Current year priorities
Our colleague engagement strategy includes ‘always on’ listening. We focus on driving 
actions based on what we hear and communicating what we are doing. Leaders play 
a key role in engagement, and we are developing capability to ‘Inspire and Engage’ our 
colleagues. 
A new learning and development portal ‘The Academy’ was launched during the year, 
digitising our learning system and step changing our digital learning and development 
capability.
A technical careers pathway was launched, setting out the development journey for every 
technical colleague.
The Drive leadership development program supports managers in our garage services to 
develop their leadership capability.
An enhanced referral scheme incentivises our colleagues to introduce candidates to join 
the Halfords family.
During the year labour turnover reduced by 3.2% as a result of processes, systems and 
training implemented to support recruitment and retention
•	 Further develop our engagement strategy 
through evolving our annual survey, 
introducing quarterly pulse surveys, 
and running engagement surgeries for 
hotspot areas.
•	 Define our listening strategy focussing 
on listening groups, colleague network 
groups and launching a colleague council 
to ensure that the voice of the colleague is 
visible, heard and supported. 
•	 Launch the Halfords leadership 
behaviours with a focus for all leaders 
on ‘Engages and Inspires’ and ‘Develops 
Talent’. 
•	 Deliver a Garage Manager capability 
programme which emphasises what is 
expected in engaging and leading their 
teams. 
•	 Recruit an engagement manager and ED&I 
manager to support the development of 
plans to further drive the progression of 
equality, diversity, and inclusion.
•	 End-to-end review of recruitment, 
onboarding, and colleague induction 
with a plan to deliver an increase in hiring 
volume, the speed to hire, retention through 
probation and an improved colleague 
experience.
•	 Review of our colleague proposition, 
reward, and benefits for key difficult to hire 
roles, ensuring we are market competitive. 
•	 Develop an early careers strategy for 
garage services that further leverages our 
learning Academy and technical skills and 
career pathways.
•	 Recruit 150 garage apprentices and launch 
leadership apprenticeships.
88
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
PRINCIPAL 
RISKS

Disruption to end to end supply chain
Risk direction
The Halfords End-to-end (“E2E”) supply chain is an integration of the process from sourcing of products (including the 
raw material procurement and product design by our supply partners) through to scheduling and delivery of goods to 
our customers (through our Distribution centre (“DC”) network or third party logistics providers to stores and garages, or 
direct-to-consumer). 
Disruption to the E2E process creates a major impact to customer fulfilment and/or customer facing price increases 
due to supply shortages, increased demand for raw materials impacting availability and input price, production delays 
that lead to an extension in supply lead times, logistics delays in the form of shipping of goods, or the potential closure of 
one of our DC’s, all of which challenges our ability to meet sales and profit projections.
Mitigation
Current year priorities
Our sourcing capability and supplier relationships are delivered through dedicated 
UK, Asian and Near sourcing teams. These teams maintain both strategic and 
upstream supplier relationships, operate multiple sources, dual sourcing, product 
engineering and are engaged in the ESG agenda. 
Our in-house expertise delivers the high global trading standards from Authorised 
Economic Operator accreditation, import/export expertise and dedicated security at 
each of our DC sites. 
Our third-party logistics (“3PL”) relationships give expertise and options. We contract 
with multiple shipping lines for flexibility and leverage, we have access to large 
organisational support from Yusen Logistics, Wincanton, and Clipper Logistics. PwC 
also provide external trading and compliance expertise. 
During the year, we successfully transitioned our Washford Retail Distribution Centre 
to a new cloud-based Warehouse Management System, improving system reliability 
and resilience. 
We also transitioned our tyre distribution arrangements to a 3PL provider, delivering a 
more effective and efficient service to our garages.
•	 The new Warehouse Management System 
roll-out continues across the Retail Distribution 
network following the successful deployment in 
our Washford Retail Distribution Centre in FY24.
•	 We plan to invest in further resource and auditing 
of our key suppliers to manage due diligence on 
duty preference benefits and anti-dumping risks, 
especially on bicycles. 
•	 Following the transition of our tyre distribution 
arrangements to a 3PL provider, we will conduct a 
review of the end-to-end garage supply chain to 
identify opportunities to increase effectiveness 
and efficiency.
Key to risk direction
 Risk increasing
 Risk decreasing
 No risk movement
N  New risk
 halfords.annualreport2024.com
89
STRATEGIC 
REPORT

In determining the appropriate basis of preparation of the financial statements for 
the period ended 29 March 2024, the Directors are required to consider whether the 
Group can continue in operational existence for the foreseeable future. 
The Board has concluded that it is 
appropriate to adopt the Going Concern 
basis, having undertaken an assessment 
of the financial forecasts for the 12 month 
period to July 2025.
Management has prepared the assessment 
of Going Concern, which included reviewing 
financial forecasts and projections to 
July 2025. Within these financial projections, 
management reviewed profit and net cash 
flow and tested the financial covenants 
associated with the Group’s committed 
facility in the period. No issues were found.
The financial forecasts have been stress 
tested to determine the required sales 
decline versus the Going Concern scenario 
before the covenant conditions were 
breached. This assessment also included 
variable and other cost-saving measures 
the Group would employ in this scenario and 
showed that sales would have to reduce 
by more than 19% annually before the 
first covenant condition is broken (interest 
payable to EBITDAR). 
The current economic environment means 
that we are expecting some impact on 
consumer spending given the pressures on 
disposable incomes, especially in “non-
needs” based spending areas, but do not 
believe that these external risks would cause 
a sales reduction of greater than 19% in the 
next 12 months. If sales were to reduce at this 
level, then further actions could be taken by 
management to prevent a covenant breach. 
The key mitigating action would be to halt 
strategic investment in FY25.
The Group continues to be cash generative 
and has a committed revolving credit facility 
of £180m which expires on 16 April 2028. 
The Board has a reasonable expectation 
that the Group and Company will be able to 
continue in operation and meet its liabilities 
as they fall due; retain sufficient available 
cash and not breach any covenants under 
any drawn facilities over the remaining term 
of the debt facility. They do not consider 
there to be a material uncertainty around the 
Group or Company’s ability to continue as a 
Going Concern.
Conclusion
Based on this review, management is 
satisfied that it is appropriate to adopt a 
going concern basis in preparing the FY24 
period end accounts.
90
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
GOING CONCERN  
AND VIABILITY STATEMENT

In accordance with the Corporate Governance Code, the Directors have assessed 
the viability of the Company over a three-year period to March 2027.
The Directors believe this period to be 
appropriate as the Company’s strategic 
planning encompasses this period, and 
because it is a reasonable period over which 
the impact of key risks can be considered 
within a fast-moving retail and services 
business. This period is consistent with the 
approach taken last year and with many other 
retailers’ disclosures.
The Directors have assessed the prospects 
of the Group by reference to its current 
financial position, its recent and historical 
financial performance, its business model 
and strategy, and the Principal risks and 
mitigating factors described on pages 82 
to 89. The Board regularly reviews financial 
headroom and cash flow projections to 
ensure that the business retains sufficient 
liquidity to meet its liabilities in full as they fall 
due. The Group is, as results demonstrate, 
financially strong, historically generating 
cash (excluding acquisitions) and profitable 
each year, which was true throughout 
the period ended 29 March 2024 and is 
expected to continue. In making this Viability 
Statement, the Directors have reviewed 
the overall resilience of the Group and have 
specifically considered:
The likelihood and impact of 
the principal risks
At a recent review by the Audit Committee, 
Directors agreed that the risk register 
identifies no matters that may jeopardise a 
reasonable expectation that the Company 
will be able to continue in operation and 
meet its liabilities as they fall due in the 
reasonably foreseeable future (i.e., three 
years). The Audit Committee’s review 
included a robust assessment of the impact, 
likelihood and management of principal risks 
facing the Group, including those risks that 
could threaten its business model, future 
performance, solvency, liquidity or day-to-day 
operations and existence. Mitigating actions 
that would serve to protect the sustainability 
of the business model include an ongoing 
shift to a services proposition, a continued 
focus on reducing underlying costs (e.g., 
rental costs through property renegotiations) 
and driving down cost of goods where 
possible through targeted efficiencies and 
scale benefits.
Financial analysis and forecasts
The Board recently reviewed the financial 
plan to FY28, including the current financial 
position and performance, cash flow 
projections, dividend strategy, funding 
requirements and funding facilities. Sensitivity 
and stress testing was subsequently applied 
to the financial plan to determine the extent 
to which sales and cash would need to 
deteriorate before breaching the financial 
covenants embedded within the Group’s 
committed bank facilities. 
The testing indicated that the business 
could experience a sustained reduction in 
sales of over 19%, and still remain within 
existing facilities and covenants. The 
downside scenario makes an assumption 
on variable cost savings, assuming that 
costs equating to 15% of sales, or, on 
average, c. £61m per annum, are removed. 
The downside scenario also incorporates 
a further, on average, c. £84.2m of fixed 
costs which would be saved annually were 
this sales scenario to materialise, with 
savings across a number of business areas 
including performance-related incentives, 
transformation programme investment and 
head office costs. Based on their assessment 
of the plan, the Directors believe a downside 
sales scenario of this magnitude and 
duration is unlikely to materialise. The Group’s 
committed revolving credit facility has been 
extended, the new committed facility expires 
on 16 April 2028.
Viability Statement
Based on this review, the Directors confirm 
that they have a reasonable expectation that 
the Group will continue to meet its liabilities as 
they fall due over the three-year period.
 halfords.annualreport2024.com
91
STRATEGIC 
REPORT
VIABILITY 
STATEMENT

CONTENTS
Governance at a Glance
94
Board of Directors
98
Executive Team
100
Corporate Governance Report
102
Nomination Committee Report
120
ESG Committee Report
124
Audit Committee Report
126
Remuneration Committee Report
132
Directors’ Report
150
Directors’ Responsibilities
155
GOVERNANCE
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
92

 halfords.annualreport2024.com
93
GOVERNANCE

Meeting Attendance
Board member
Board 
scheduled: 10
Audit 
Committee 
scheduled: 5
Remuneration 
Committee 
scheduled: 5
Nomination 
Committee 
scheduled: 2
ESG 
Committee 
scheduled: 3
Executive Directors
Graham Stapleton
10  10
N/A
N/A
N/A
N/A
Jo Hartley
10  10
N/A
N/A
N/A
N/A
Non-Executive Directors
Keith Williams
10  10
N/A
N/A
2  2
N/A
Jill Caseberry
10  10
5  5
5  5
2  2
3  3
Tom Singer
10  10
5  5
5  5
2  2
3  3
Tanvi Gokhale (appointed 20 June 2023)
8  8
4  4
4  4
2  2
2  2
Helen Jones (retired 6 September 2023)
4  4
1  1
2  2
0  0
1  1
 Meetings attended   Possible meetings
Other members of the Executive Team and professional advisors attended Board meetings by invitation as appropriate throughout the year. 
At each Board meeting, the Chief Executive Officer delivers a high-level update on the business, and the Board considers specific reports, 
reviews business and financial performance, as well as key initiatives, risks and governance. In addition, throughout the year, the Executive Team 
and other colleagues delivered presentations to the Board on proposed initiatives and progress on projects.
94
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
GOVERNANCE 
AT A GLANCE

Board
EM
SMT
 Under 18 
0
0
0
 18-24
0
0
0
 25-34
0
0
2
 35-44
0
0
11
 45-54
2
5
22
 55-64
3
2
2
 65 and over
1
0
0
 Not specified/prefer not to say
0
0
1
Board
EM
SMT 
 Female
3
2
8
 Male
3
5
29
 Non-binary 
0
0
0
 Not specified/prefer not to say
0
0
1
Board
EM
SMT
 White British or other White
5
7
37
 (including minority-white groups)
0
0
0
 Mixed/Multiple Ethnic Groups
0
0
0
 Asian/Asian British
1
0
0
 Black/African/Caribbean/ 
	
Black British
0
0
0
 Other ethnic group, including Arab
0
0
0
 Not specified/prefer not to say
0
0
1
Board
EM
SMT
 Level 3 or Below (GCSE, A Level or equivalent)
1
2
10
 Level 4 (HNC, CertHE, higher apprenticeship  
	
or equivalent)
0
0
3
 Level 5 (HND, DipHE or equivalent)
0
0
3
 Level 6 (University degree or equivalent)
3
2
9
 Level 7 (Masters Degree, postgraduate  
	
certificate or equivalent)
2
3
11
 Level 8 (Doctorate)
0
0
0
 Not specified/prefer not to say
0
0
1
Note: Executive Management is defined as the most senior Executive body below the Board including the Company Secretary but excluding administrative and support staff.  
Senior Management Team is defined as the Company’s Executive Committee or equivalent and those senior managers reporting directly to them.
Senior Management Team (SMT)
Executive Management 
(EM)
Board
Age
Gender
Ethnic 
Background
Educational 
Background
Senior Management Team (SMT)
Executive Management 
(EM)
Board
Senior Management Team (SMT)
Executive Management 
(EM)
Board
Senior Management Team (SMT)
Executive Management 
(EM)
Board
 halfords.annualreport2024.com
95
GOVERNANCE

BOARD 
SKILLS
and experience
Leadership:  
6 Directors
The ability to guide, direct 
or influence people.
Total years:
143
Governance:  
6 Directors
Position of authority  
or control.
Total years:
126
Strategy:  
6 Directors
The art of developing or carrying out a carefully  
devised plan of action to achieve a goal.
Total years:
136
Cross-functional:  
6 Directors
Experience in finance, 
marketing, operations, 
and human resources 
departments. Typically, 
working with suppliers,  
key customers, or 
consultants.
Total years:
165
Banking:  
3 Directors
Total years:
69
Corporate:  
6 Directors
IPOs, Schemes 
of Arrangements, 
Flotation, Restructure, 
Reorganisation, Listing/
De-listing.
Total years:
117
Finance:  
6 Directors
Total years:
167
Retail: 6 Directors
The selling of goods 
directly to customers,  
e.g. in shops.
Total years:
117
M&A:  
6 Directors
Total years:
98
Digital: 5 Directors
Experience in processing, 
storing, transmitting, 
representing, or 
displaying data.
Total years:
102
Marketing: 4 Directors
Promotion of the value of a product, service or brand to 
customers for the purpose of promoting or selling that product, 
service or brand.
Total years:
105
Customer Services:  
5 Directors
The provision of service to customers 
before, during and after a purchase.
Total years:
124
Business Development/ 
Brand Building: 5 Directors
Developing and implementing growth 
opportunities within and between 
organisations.
Total years:
119
Supply Chain: 5 Directors
Involvement in a system of 
organisations, people, activities, 
information and resources involved 
in moving a product or service from 
supplier to customer.
Total years:
78
96
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
GOVERNANCE 
AT A GLANCE

Diversity and Inclusion
The Group recognises the importance of diversity and inclusion, 
including gender and ethnicity, at all levels of the organisation. 
The Group’s Diversity Policy (the “Policy”) is reviewed annually and 
sets out our commitment to eliminating unlawful discrimination 
and promoting equality of opportunity. The Policy is applied 
to the Group, including the Board, and it is considered that the 
background and experience brought to the Board by each 
individual Director exemplifies and personifies the Board’s 
commitment to its Policy.
The Nomination Committee keeps under review the composition 
and diversity of the Board and the capability and capacity to 
commit the necessary time to the role in its recommendations 
to the Board. Whilst the Group does not apply a fixed quota on 
diversity to decisions regarding recruitment, the Nomination 
Committee considers the Policy and ensures we have a sufficiently 
diverse Board in terms of age, gender, ethnicity and educational 
and professional background and that the Board members work 
together effectively to achieve its objectives. The intention is 
always to ensure the appointment of the most suitably qualified 
candidate to complement the Board and to promote diversity. 
Those appointed are deemed to be the best able to help lead the 
Group in its long-term strategy. At Halfords, half of the Board is 
female, which exceeds the recommended target as published 
by the Hampton-Alexander Review (“Improving Gender Balance 
in FTSE Leadership”) in November 2017. The Board has always 
been committed to improving ethnic diversity at Board and senior 
management level and in June 2023 Tanvi Gokhale was appointed 
as a Non-Executive Director, more information can be found in the 
Nomination Committee Report on pages 120 and 121. The Board 
is well-placed by the mixture of skills, experience and knowledge 
of its Directors, to act in the best interests of the Company and its 
shareholders. In accordance with LR 9.8.6(R)9, as of 25 June 2024, 
the Group was compliant with all three of the targets on Board 
diversity prescribed by the Listing Rules as set out below:
1.	at least 40% of the individuals on its Board of Directors 
are women;
2.	at least one of the senior positions of Chair, CEO, CFO and/or 
SID on its Board of Directors is held by a woman; and
3.	at least one individual on its Board of Directors is from a minority 
ethnic background.
The 25 June 2024 date is used as the reference date for 
this information as it is the latest practicable date prior to the 
publication of the Annual Report and Accounts. Between the 
reference date and the date of publication of the 2024 Annual 
Report and Accounts, the structure of the Executive management 
has changed, please refer to page 122 for more details. The 
numerical data in the format prescribed by LR 9.8.6(R)10 is 
available on page 122. For the purposes of the description 
required by DTR 7.2.8AR(1)(d), the Group has decided to disclose 
the numerical data on the diversity of the members of the Board 
and Executive Management, this is available on page 122. 
Promoting Long-Term 
Sustainable Success of the Group
Addressing Opportunities and Risks 
to the Future Success of the Business
The Board’s primary role is to ensure the 
long-term success of the Group, by delivering 
sustainable value for all its stakeholders. 
The Board has responsibility for setting 
the Group’s strategy and monitoring its 
execution, for ensuring the implementation 
of a robust risk management framework 
and, for overseeing financial and operational 
performance. These responsibilities are 
supported by the Group’s culture and 
values, which are designed to drive the 
right behaviours and by a strong corporate 
governance framework.
The Sustainability of our 
Business Model
Our current strategy was launched in 
September 2018, built around our purpose 
to “Inspire and Support a Lifetime of 
motoring and cycling”. At our Capital Markets 
Day in April 2023, we reaffirmed that this 
strategy remains the right one, and painted 
a clear vision for the financial outcomes 
we expect it to drive in the mid-term and 
mid- to long- term. Further details of our 
strategy and business model are provided on 
pages 26 to 52.
How the Board Contributes to 
the Delivery of Halfords’ Strategy
Through formal Board meetings and 
regular engagement with the Executive 
Team, the Board continues to oversee the 
implementation of the strategy to ensure it 
remains fit for purpose. 
Board Training Sessions
April 2023
Diversity and 
Inclusion 
Employee voice update
Cyber/IT 
Technology 
architecture update
July 2023
Diversity and 
Inclusion 
Employee voice update
Governance 
Remuneration update 
from Deloitte
November 2023
Diversity and 
Inclusion 
Employee voice update
Governance 
Remuneration update 
from Deloitte
February 2024
Diversity and 
Inclusion 
Employee voice update
March 2024
Diversity and Inclusion 
Gender pay
Cyber/IT 
IT security update 
Governance 
ESG update from Gate 
One Consulting
 halfords.annualreport2024.com
97
GOVERNANCE

Keith Williams
Chair
Graham Stapleton
Chief Executive Officer
Jo Hartley
Chief Financial Officer
N
Current role
Appointed Chair of the Company and of the 
Nomination Committee on 24 July 2018.
Additional roles held
Keith is the Non-Executive Chair of 
International Distribution Services plc 
(previously Royal Mail Group); Chair of the 
Nomination Committee and a member of the 
Remuneration Committee. Keith is a qualified 
Chartered Accountant.
Past roles
Keith was formerly a Non-Executive Director 
and Deputy Chair of John Lewis, a Non-
Executive Director of Aviva plc, and Chief 
Executive Officer and then Executive Chair 
of British Airways, having previously been 
at Boots, Reckitt and Colman, and Apple 
Computer Inc. Keith was the independent 
Chair of the Government-supported Rail 
Review.
Key strengths
Keith brings extensive leadership and plc 
board experience. He is a highly regarded 
business leader with a proven record in retail 
and deep experience in relevant areas such 
as customer service and digital.
Current role
Graham was appointed Chief Executive 
Officer (“CEO”) on 15 January 2018.
Additional roles held
None.
Past roles
Previously, Graham was CEO of Dixons 
Carphone plc’s software business, 
Honeybee. Prior to that he was CEO of Dixons 
Carphone’s Connected World Services 
Division from 2015 to 2017 and CEO of 
Carphone Warehouse UK and Ireland from 
2013 to 2015. Graham’s early career covered 
senior leadership roles in Kingfisher plc from 
2001 to 2005 and Marks and Spencer plc 
from 1994 to 2001, prior to which Graham 
set up and ran his own business for several 
years. Graham was a Trustee of the Make-A-
Wish charity. Graham was also previously a 
Non-Executive Director of The Magic Bean 
Co. Limited and a Non-Executive Director of 
Loyalty Angels Limited (known as Bink).
Key strengths
Graham is an outstanding business leader 
and brings extensive skills and experience to 
the plc Board.
Current role
Chief Financial Officer (“CFO”) since  
16 June 2022.
Additional roles held
None.
Past roles
Prior to joining Halfords, Jo was the Group 
CFO for Virgin Active for over six years. 
Before that, Jo worked at Tesco plc in 
a number of finance roles in the UK and 
internationally, having qualified as a chartered 
accountant at Deloitte UK.
Key strengths
Jo has extensive experience across all 
finance functions gained within consumer 
facing businesses.
Committee Membership
A
E
EV
N
R
Audit Committee
ESG Committee
Employee Voice Director
Nomination Committee
Remuneration Committee
98
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
BOARD OF 
DIRECTORS

Jill Caseberry
Senior Independent Director
Tom Singer
Independent Non-Executive Director
Tanvi Gokhale
Independent Non-Executive Director
A  E  N  R
A  E  N  R
A  E  EV  N  R  
Current role
Non-Executive Director and Remuneration 
Committee Chair since 1 March 2019. 
Senior Independent Director since 
6 September 2023.
Additional roles held
Jill is currently a Non-Executive Director 
and member of the Audit and Remuneration 
Committees of C&C Group plc; Senior 
Independent Director, Chair of the 
Remuneration Committee and a member 
of the Nomination Committee of Bakkavor 
Group plc; Senior Independent Director, 
Remuneration Committee Chair and member 
of the Audit and Nomination Committees 
of St. Austell Brewery; and a Non-Executive 
Director and Chair of the Remuneration 
Committee and a member of the Audit, 
Nomination and ESG Committees of 
Bellway plc.
Past roles
Previously, Jill was Non-Executive Director, 
Remuneration Committee Chair and a 
member of the Audit and Nomination 
Committees of Northgate plc; and the 
Designated Workforce Engagement 
Non-Executive Director of Bakkavor Group 
plc. During her Executive career, Jill gained 
extensive sales, marketing and general 
management experience across a number of 
blue chip companies, including Mars, PepsiCo 
and Premier Foods. She also founded a soft 
drink company and established a sales and 
marketing consultancy. 
Key strengths
Jill brings extensive leadership experience 
from senior sales and marketing roles in 
consumer goods businesses.
Current role
Non-Executive Director since 16 September 
2020, and Chair of the Audit Committee since 
1 January 2021.
Additional roles held
Tom is a Non-Executive Director and 
Audit Committee Chair of Mukuru and Vue 
International Group. 
Past roles
Tom was the Senior Independent Director 
and Chair of the Audit and Remuneration 
Committees at DP Eurasia NV; Chair of 
the Audit Committee at Liberty Living; 
and a Non-Executive Director and Chair 
of the Audit Committee at Mediclinic 
International plc. Previously, he served as 
CFO of InterContinental Hotels Group plc, 
Group Finance Director of British United 
Provident Association (“BUPA”), CFO and 
Chief Operating Officer of William Hill plc and 
Finance Director of Moss Bros plc, having 
started his career in professional services 
and spending a total of 12 years at Price 
Waterhouse and McKinsey.
Key strengths
Tom brings extensive experience of strategy 
development, corporate governance and 
numerous finance disciplines.
Current role
Non-Executive Director since 20 June 
2023, and Chair of the ESG Committee 
and Employee Voice Director since 
6 September 2023.
Additional roles held
Tanvi currently serves as Managing Director, 
Retail Strategy and Innovation of NatWest 
Group and is a Trustee of English Heritage. 
Past roles
Tanvi previously served as a strategy 
consultant at Booz & Co. She also previously 
served as Segmentation and Propositions 
Director for Lloyds Banking Group, and until 
March 2023, she served as Chair of the 
Investment Committee at English Heritage.
Key strengths
Tanvi brings extensive experience in retail 
strategy and financial services to the Board.
 halfords.annualreport2024.com
99
GOVERNANCE

Karen Bellairs
Chief Customer  
and Commercial Officer
Paul O’Hara
Chief People  
and Property Officer
Adam Gerrard
Chief Information  
and Data Officer
Please see full biography on the corporate 
website: www.halfordscompany.com/about-
us/our-executive-team/
Please see full biography on the corporate 
website: www.halfordscompany.com/ about-
us/our-executive-team/
Please see full biography on the corporate 
website: www.halfordscompany.com/about-
us/our-executive-team/
100
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
EXECUTIVE 
TEAM

GOVERNANCE
101
 halfords.annualreport2024.com

We continued to embed 
our values through 
our Group induction 
programme and 
recognition scheme
Keith Williams
Chair
To Inspire and Support 
a Lifetime of motoring 
and cycling
Strategy
Our purpose is “to inspire and support a 
lifetime of motoring and cycling”, and our 
long-term strategy is to evolve into a consumer 
and B2B services-focussed business, with 
a greater emphasis on motoring. We have 
continued to deliver on this strategy in FY24, 
with Services now accounting for over half of 
Group revenues. This has helped to create a 
more resilient platform and positions the Group 
well to generate higher and more sustainable 
financial returns in the future. More details of our 
strategy can be found on pages 48 to 52 in the 
Strategic Report.
Purpose, Culture and Engaging 
with the Workforce
During FY24, we continued to recognise the 
importance of ensuring the culture of the 
organisation is aligned with our business 
strategy and ambition to become a customer-
led, market-leading services business. More 
details can be found on pages 106 to 109.
Annual General Meeting (“AGM”)
Once again, we look forward to being able to 
welcome shareholders to the AGM to be held at 
our Support Centre. Further details of the AGM 
arrangements can be found on pages 119 and 
154 of this report.
Board Changes
On 20 June 2023, we announced that Helen 
Jones would be stepping down from the Board as 
a Non-Executive Director and Senior Independent 
Director at the AGM on Wednesday 6 September 
2023. On 20 June 2023, Tanvi Gokhale was 
appointed as a Non-Executive Director to join 
the Board, the Nomination, Audit, Remuneration 
and ESG Committees. On 6 September 2023, Jill 
succeeded Helen as Senior Independent Director, 
and Tanvi succeeded Helen as Chair of the ESG 
Committee and as the Employee Voice Director.
Keith Williams
Chair
17 July 2024
Corporate 
Governance Statement
The Board confirms that, throughout the 
period ended 29 March 2024 and, as at 
the date of this report, the Company has 
applied the principles of, and complied with, 
the provisions of the 2018 UK Corporate 
Governance Code (“Code”) save for the 
following: the Board notes that there was 
a short breach of provision 11 of the Code 
between 31 March 2023 and 20 June 2023. 
It was agreed that Helen Jones should 
remain in office until the end of the 2023 
AGM on 6 September 2023. The Board 
recognised that Helen would no longer be 
considered independent for the purpose of 
the Code, due to her extended tenure, and 
that this did create a technical breach of the 
Code’s recommendation that the majority 
of the Board be independent Non-Executive 
Directors. However, the Board believed that 
this short-term situation (which was resolved 
on 20 June 2023 when Tanvi Gokhale was 
appointed) was justified to ensure that the 
correct candidate could be appointed to 
the Board in Helen’s place and an orderly 
handover could be undertaken. This decision 
was made in accordance with the comply or 
explain spirit of the Code.
This report, together with the other 
statutory disclosures and reports from 
the Audit, Nomination and Remuneration 
Committees, provides details of how the 
Company has applied the principles of good 
governance as set out in the Code during 
the period under review. A copy of the 
Code is available on the Financial Reporting 
Council’s website at www.frc.org.uk.
The Company has complied with the 
relevant requirements under the Disclosure 
Guidance and Transparency Rules, the 
Listing Rules, the Directors’ Remuneration 
Reporting regulations and narrative 
reporting requirements.
102
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CORPORATE 
GOVERNANCE REPORT

Promoting Our Purpose, Culture and Long-Term Success
Board Leadership and Company Purpose
Description:
Read more:
The Company is led by an effective Board, which promotes the long-term success of the Company and 
engages with its shareholders and stakeholders. The Board has established the Company’s purpose, 
values and strategy and is satisfied that these, and its culture, are aligned.
Read more on our Strategy on 
pages 48 to 52.
The Board has ensured that the workforce is able to raise any matters of concern, and that all policies and 
practices are consistent with the Company’s values.
Read more on Risk 
Management on 
pages 81 to 89.
The Board has established an effective governance and risk framework.
Read more on our Culture  
on pages 106 to 109.
Ensuring a Clear Division of Responsibilities
Division of Responsibilities
Description:
Read more:
The Chair leads the Board, which includes an appropriate combination of Executive Directors and  
Non-Executive Directors. 
Read more on Board 
Composition on pages 95 
and 114.
The Non-Executive Directors provide constructive challenge, strategic guidance and advice and have 
sufficient time to meet their Board responsibilities.
Read more on Division 
of Responsibilities on 
pages 114 to 117.
There is a clear division of responsibilities between the running of the Board and the running of the 
business, and the Board has identified certain “reserved matters” that only it can approve. Other matters, 
responsibilities and authorities have been delegated as appropriate, and there are relevant policies and 
processes in place for the Board to function effectively and efficiently.
Read more on Risk 
Management on pages 
81 to 89.
Delivering Effectiveness Through a Balanced Board
Composition, Succession and Evaluation
Description:
Read more:
A comprehensive and tailored induction programme is in place for new Directors joining the Board. The 
induction programme facilitates their understanding of the Group and the key drivers of the Group’s 
performance.
Read more on Board 
Appointments and Induction 
on page 121.
A rigorous, effective and transparent appointment process is in place, which, together with the effective 
succession plans, promotes diversity of gender, social and ethnic backgrounds, cognitive and personal 
strengths.
Read more on Board 
Evaluation on pages 118 
and 119.
Enabling Reporting Integrity and an Effective Control Environment
Audit Risk and Internal Control
Description:
Read more:
The Board has established formal and transparent policies and procedures to ensure the independence 
and effectiveness of both internal and external audit functions. The Board satisfies itself on the integrity of 
financial and narrative statements. The Board presents a fair, balanced and understandable assessment of 
the Group’s position and prospects.
Read more on the Audit 
Committee on pages 126 
to 131.
The Board has established procedures to manage risk, oversee the internal control framework and 
determine the nature and extent of the principal risks of the Group.
Read more on Risk 
Management and Internal 
Control on pages 81 to 89.
Ensuring Alignment With the Successful Delivery of Our Long-Term Strategy
Remuneration
Description:
Read more:
The Company has designed the Remuneration policies and practices to support strategy and promote 
long-term sustainable success. The Executive remuneration is aligned to the interests of our shareholders 
and to the Company’s purpose and values and is clearly linked to the successful delivery of our long-term 
strategy.
There is a formal and transparent procedure for developing Executive Remuneration policy and determining 
Director and senior management remuneration. Directors are able to exercise independent judgement 
and discretion when authorising remuneration outcomes, taking into account Company and individual 
performance and wider circumstances.
Read more on Director 
Remuneration on pages 132 
to 149.
 halfords.annualreport2024.com
103
GOVERNANCE

Board Priorities for FY24: Main Areas:
Strategy
Governance
Board Matters
•	 Received updates on FY24 key 
strategic initiatives and opportunities.
•	 Discussed and reviewed updates 
on the acquisition strategy and M&A 
activities.
•	 Reviewed and approved the agreement 
with R & R C Bond (Wholesale) Limited.
•	 Discussed and approved the 
investment of Bridgestone in the 
Avayler business.
•	 Received regular updates from the 
Chairs of the Remuneration, Audit, 
Nomination and ESG Committees.
•	 Reviewed and approved the FY23 
Annual Report and Accounts.
•	 Reviewed and approved the Directors’ 
Conflicts of Interests Register, Group 
policies, the Group Risk Register 
and the roles of the Chair, the 
Chief Executive Officer and Senior 
Independent Director.
•	 Received regular corporate governance 
updates, project investment reviews 
and a review of the external audit.
•	 Reviewed the succession plans for the 
Board and the restructure of the senior 
management team.
•	 Reviewed the Board and Committees’ 
programme and forthcoming meeting 
schedule.
•	 Reviewed the outcome of the external 
FY23 Board evaluation.
•	 Discussed and agreed the scope of the 
internal FY24 Board evaluation.
Link to Stakeholder
A  B  D  E  F  G  H  
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  C  E  F  G  
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  F
Link to Strategy
1  2  3  
Financial and Risk Management
Commercial Matters
Shareholder and Stakeholder Relations
•	 Reviewed monthly business and trading 
performance.
•	 Reviewed and approved the preliminary 
and interim announcements, the 
trading update approaches and 
announcements.
•	 Reviewed and approved the interim 
dividend and recommended payment 
of the final dividend.
•	 Reviewed updates on banking 
arrangements, liquidity, cash control, 
treasury matters and currency hedging.
•	 Reviewed and approved the Group 
Going Concern and Viability Statement.
•	 Reviewed and approved the five-year 
plan, the FY25 budget and forecast.
•	 Reviewed and discussed the 
refinancing arrangements.
•	 Received updates on the process for, 
and approval of, the annual renewal of 
the Group’s insurance policies.
•	 Reviewed and approved a number of 
large commercial contracts and spend.
•	 Reviewed results of the Colleague 
Engagement Survey.
•	 Discussed and approved colleague 
health and wellbeing programmes.
•	 Reminded the Directors of their 
obligations under Section 172 of the 
Companies Act 2006.
•	 Reviewed monthly investor relations 
reports and annual shareholder body 
reports.
•	 Reviewed and approved the 2023 
Notice of the Annual General Meeting 
and the arrangements for the 2023 
Annual General Meeting.
Link to Stakeholder
A  B  F
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  C  E  F  G  
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  C  D  E  F  G  
Link to Strategy
1  2  3  
Key to Stakeholders
A  Colleagues 
B  Investors 
C  Communities 
D  Media 
E  Customers 
F  Suppliers 
G  Environment 
H  Government
Board Leadership and Company Purpose
104
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CORPORATE 
GOVERNANCE REPORT

Board Priorities for FY25: Main Areas:
Strategy
Governance
Board Matters
•	 Review the annual strategy refresh and 
associated financial business plan.
•	 Review any potential M&A 
opportunities.
•	 Receive regular updates from the 
Chairs of the Remuneration, Audit, 
Nomination and ESG Committees.
•	 Review and approve the FY24 Annual 
Report and Accounts.
•	 Review and approve the Directors’ 
Conflicts of Interests Register, Group 
policies, the Group Risk Register and 
the roles of the Chair, the CEO and 
Senior Independent Director.
•	 Continue the process to ensure that the 
composition of the Board is compliant 
with the Parker Review.
•	 Review succession plans for the Board 
and the Senior Management Team.
•	 Review the Board and Committees’ 
programme and forthcoming meeting 
schedule.
•	 Discuss the outcome of the FY24 
internal Board evaluation and agree the 
scope of the FY25 Board evaluation.
•	 Review the Board programme of visits.
Link to Stakeholder
A  B  E  F  G  
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  C  D  E  F  G  
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  F
Link to Strategy
1  2  3  
Financial and Risk Management
Commercial Matters
Shareholder and Stakeholder Relations
•	 Review monthly business and trading 
performance.
•	 Review and approve trading update 
announcements.
•	 Review and approve the dividend policy 
and any dividend payments.
•	 Review and approve the FY25 
updated forecast, the FY26 budget, 
banking arrangements, the financing 
arrangements and FX hedging strategy.
•	 Review commercial matters brought 
to the Board for attention and potential 
approval.
•	 Discuss and review deep dives on 
the supply chain, commercial margin 
and garage utilisation and profitability 
growth.
•	 Review colleague engagement survey 
results and the progress on the health 
and wellbeing programme.
•	 Focus on ESG agenda, particularly 
environmental issues.
•	 Reminder to Directors of their 
obligations under Section 172 of the 
Companies Act 2006.
•	 Review monthly investor relations 
reports and annual shareholder body 
reports.
•	 Review and approve the 2024 Notice of 
the Annual General Meeting.
Link to Stakeholder
A  B  F
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  E  F  
Link to Strategy
1  2  3  
Link to Stakeholder
A  B  C  D  E  F  G  
Link to Strategy
1  2  3  
Key to Strategy links
1  Inspire
2  Support
3  Lifetime
 halfords.annualreport2024.com
105
GOVERNANCE

Goals
Key Achievements
Outcomes
The Board continues to recognise the importance of its role in ensuring the culture 
of the organisation is aligned to its business strategy and ambition to become a 
customer led, market-leading services business.
Culture and Values
Create a performance culture where colleagues enjoy working efficiently and effectively together using their skills and expertise to win 
the hearts and minds of our customers.
Values
Behaviours
Built management capability 
through the delivery of our 
leadership capability framework and 
trained over 550 managers through 
our DRIVE training programme.
Plan
Act
Do
Check
Launched our Leadership 
Behaviours and integrated these 
behaviours into the performance 
and talent management 
frameworks.
Continued our programme to 
improve employee wellbeing, 
supporting colleagues through our 
various programmes focussed on 
cost of living and mental wellbeing.
Customers
•	 Customers will have a joined-up 
experience wherever they shop 
across the Group.
Colleagues
•	 Engaged colleagues will work 
together and use their skills 
and expertise to deliver an 
excellent and efficient customer 
experience.
Shareholders
•	 Shareholders will benefit from the 
generation of additional profitable 
sales and a reduction in costs.
Our Culture Journey 
Our values were established following a full 
cultural review in 2021 and remain key to 
defining our culture. We continue to embed 
our values with colleagues and during FY24 
have supplemented these with our new 
Leadership Behaviours.
In partnership with Korn Ferry, the Executive 
and Leadership team identified the critical 
Leadership Behaviours and capabilities 
we need across the Group to deliver our 
strategic plan. These eight Leadership 
behaviours have now been rolled-out across 
the leadership population and are being 
embedded into our performance and talent 
review processes. We will continue to embed 
these behaviours in our Leadership team, 
delivering focussed Leadership development 
training to increased capability.
In FY24 we implemented our leadership 
capability programme DRIVE for Autocentre 
managers. This programme is designed to 
ensure that our managers and leaders are 
immersed immediately into an experience 
that clearly sets out “how to be a great 
Halfords manager” and how we live 
and breathe our values and leadership 
behaviours through strong communication 
and team management. The programme is 
also intended to provide the opportunity to 
further practice and enhance these skills.
Board Leadership and Company Purpose
106
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CORPORATE 
GOVERNANCE REPORT

FY24 
We continue to focus on improving colleague 
wellbeing across four wellbeing pillars; 
financial, physical, mental and social. 
To help colleagues through the continued 
increases in the cost of living, we continue 
to provide our colleagues with greater 
control over their pay and can help 
educate on money management through 
a dedicated financial wellbeing application. 
The application supports personal finance 
management; gives colleagues early access 
to salary throughout the month; access to 
a trusted and impartial financial education 
hub, to help build money confidence; 
and encourages colleagues to build an 
emergency or rainy-day fund.
We also offer great elective benefits 
allowing access to affordable health plans 
and dental insurance, discounts and 
cashback at thousands of retailers and have 
extended our friends and family discount 
scheme permanently.
For colleagues facing or at risk of significant 
financial hardship we support with our 
Halfords “Here to Help” Fund, which was 
set up by the Halfords Group during the 
pandemic and continues to provide grants to 
support colleagues in need. 
To help colleagues manage stress and 
support their mental wellbeing, we have 
continued to create awareness and provide 
resources through our online portal and 
through promotional material visible to all 
colleagues. We continued to support our 
mental health first-aider programme with 
over 90 mental health first aiders across the 
Group. Our partnership with mental health 
charities Mind, SAMH and Inspire have 
provided access to further mental health 
information and resources.
To support embedding our values, 
we continued to run our recognition 
programmes across all our business areas, 
including our “Colleague of the Quarter” 
and “Colleague of the Year” award. As well 
as prizes, all winners were also invited to a 
celebratory lunch with the Executive team.
H1
•	 Annual pay review for all hourly colleagues completed.
•	 Full annual colleague engagement survey conducted.
•	 Engagement targets set for Board and Executive Team.
•	 Celebrated Pride Month across the Halfords Group to 
raise awareness of LGBTQIA+ colleague network group and 
promote Diversity and Inclusion.
H2
•	 Launched our Leadership Behaviours to over 100 senior 
leaders across the Group.
•	 Built management capability by delivering DRIVE training to 
550 managers.
•	 Annual pay review for all salaried colleagues.
•	 D&I colleague network groups ran online broadcasts with 
speakers on topics such as black history month, menopause 
and disabilities to raise awareness and promote inclusivity at 
Halfords.
 halfords.annualreport2024.com
107
GOVERNANCE

Workforce Engagement
Halfords has a long-established practice 
of inviting feedback from colleagues across 
all areas of the business, including holding 
regular listening groups, appointing and 
meeting with local colleague engagement 
champions (“People Champions”), and 
conducting regular colleague surveys.
People Champions hold meetings to gauge 
how colleagues are feeling, which informs the 
programme of engagement and wellbeing 
activities. During the year, People Champions 
and colleagues from across the Group were 
invited to provide input into broader business 
initiatives, including ESG and reward practice, 
and to gain an understanding of corporate 
governance. 
The Group has long-established grievance 
and whistleblowing policies that facilitate 
colleagues’ ability to raise any matters 
of concern more formally, and in total 
confidence, should the need arise. The Board 
reviews reports relating to whistleblowing 
cases and the process is outlined in the Audit 
Committee Report on page 131. We know 
from the calls received and the data obtained 
that a large proportion of the whistleblowing 
calls received via the helpline are from store 
colleagues seeking clarification on HR or 
safety issues, this shows that the process 
works well as an adjunct to our normal HR 
processes and ensures we provide the best 
support we can to our colleagues.
Monitoring Culture
The Board monitors culture on an ongoing 
basis, both formally and informally, through 
the outputs of colleague engagement 
surveys, and through regular listening groups 
that are held across all areas of the business. 
Prior to Helen Jones stepping down from the 
Board, as Senior Independent Director and 
also with accountability for representing the 
voice of our colleagues in Board meetings, 
Helen personally attended many of the 
listening groups held, alongside other Board 
and Executive colleagues and regularly 
reported back to the Board on the issues 
raised, a role Tanvi Gokhale has now taken 
up. Helen continues to feedback to the 
Board colleague challenges and insight 
gained through her continued voluntary 
role as Chair of the Halfords Here To Help 
Fund Committee.
Survey outputs and associated actions are 
reviewed by the Board and are incorporated 
into Executive Directors’ and Executive 
Committee functional engagement plans. 
As in prior years, our colleague engagement 
index remains a strategic measure in the 
bonus plans for our Leadership population. 
Our more holistic review of the culture of the 
business told us that Halfords is a great, 
collaborative place to work, is engaging and 
is values-led with knowledgeable, friendly 
colleagues that go the extra mile to serve 
our customers. The survey conducted in 
April 2024 confirmed that this remains 
the case today with our broader colleague 
engagement index at 73%, which means 
our engagement index remains above 
median when compared with broad market 
benchmarks.
Engagement with 
Our Stakeholders
We understand the importance of 
engagement with all our stakeholders. It is 
of significant value to our decision-making 
and planning processes and, ultimately, the 
long-term success of the business.
Board Leadership and Company Purpose
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Board Listening Approach
What This Channel Brings
Employee Voice Non-
Executive Director
•	 Provides a forum for colleagues to express their views, suggestions or concerns to ensure they are heard 
and acted upon where possible.
Virtual focus groups
•	 Insights and feedback from colleagues employed in different parts of the Group focussed on a particular 
topic such as communication, wellbeing or engagement.
Colleague engagement  
survey
•	 Measures how engaged colleagues are and how they feel about working at Halfords. The insights are 
used to identify priority areas and drive actions to improve these measures.
Blogs and written 
communications
•	 Connects colleagues across all areas of the Group with our Halfords strategy by sharing updates from 
senior leaders on the latest business performance, transformation activity, strategic, commercial and 
customer experience initiatives as well as colleague engagement activity.
Stakeholder Management
The Board understands the importance of 
strong relationships with all stakeholders 
and strongly values their input into its 
decision-making and planning processes. 
The Board seeks to ensure that engagement 
with our stakeholders is effective, either by 
engaging directly or through oversight of 
the management team. This includes the 
monitoring of KPIs, such as Customer Net 
Promoter Score and Colleague Engagement 
Index. Furthermore, the Board ensured 
that stakeholder interests were carefully 
considered in the Company’s recent 
sustainability strategy review, playing a key 
role in determining our key focus areas for 
the years ahead.
Directors and their 
Other Interests
Details of the Directors’ service contracts, 
and emoluments, as well as the interests of 
the Directors and their immediate families in 
the share capital of the Company and options 
to subscribe for Company shares, are shown 
in the annual Directors’ Remuneration Report 
on pages 132 to 149.
In line with the requirement of the Companies 
Act 2006, each Director has notified the 
Company of any situation in which they have, 
or could have, a direct or indirect interest 
that conflicts, or possibly may conflict, with 
the interests of the Company (a situational 
conflict), and a register of these is maintained 
by the Company Secretary.
All Directors are aware of the need to consult 
with the Company Secretary should any 
possible situational conflict arise, so that prior 
consideration can be given by the Board as to 
whether or not such conflict will be approved.
Concerns
The Chair seeks to resolve any concerns 
raised by the Board, whether these arise in 
a Board meeting or in another forum. Where 
raised and unresolved in a Board meeting, 
the unresolved business can be recorded 
on behalf of a Director in the minutes of the 
relevant meeting. A resigning Non-Executive 
Director would also be able to raise any 
concerns in a written letter to the Chair, who 
would bring such concerns to the attention of 
the Board. 
No such concerns have been raised 
throughout the period.
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GOVERNANCE

Stakeholder Engagement
Key Themes Discussed with Shareholders in FY24
•	 Progress on our strategy and our medium- to long-term 
opportunities, which were outlined in our Capital Markets Day in 
April 2023.
•	 The dynamics of the motoring and cycling markets, specifically 
the recovery of the consumer tyres and cycling markets, both in 
terms of timing and if there have been any structural changes. 
•	 The background to the trading update on 28 February 2024 that 
reduced profit guidance. 
•	 Capital allocation priorities, specifically the balance of maintaining 
a prudent balance sheet, maintaining the dividend and enabling 
investment for growth.
•	 Gross and operating margin performance, including cost saving 
progress and further opportunities.
•	 The Chair is responsible for ensuring that appropriate channels 
of communication are established between Directors and 
shareholders and that Directors are aware of any issues or 
concerns that major shareholders may have. Regular engagement 
provides investors with an opportunity to discuss any areas of 
interest and raise concerns. The Group is eager to make sure 
that it understands shareholders’ views and that it is able to 
communicate its strategy in the most effective way. The Group 
engages through regular communications, the Annual General 
Meeting and other investor relations activities.
Investor Relations Programme
The Group has a comprehensive investor relations (“IR”) programme 
through which the Chief Executive Officer, Chief Financial Officer and 
Investor Relations team regularly engage with the Company’s largest 
shareholders on a one-to-one basis, to discuss strategic issues and 
give presentations on the Group’s results. Further communication 
is achieved through the Annual Report and Accounts, corporate 
website and investor meetings as follows:
•	 	Annual Report and Accounts – this is the most significant 
communication tool, ensuring that investors are kept fully 
informed regarding Group developments. Management 
continually strives to produce a clear and easily accessible Annual 
Report and Accounts, which provides a complete and transparent 
picture; 
•	 The corporate website – provides investors with timely 
information on the Group’s performance as well as details of 
Environmental, Social and Governance activities; 
•	 Management roadshows – allow key investors access to 
management. These are usually attended by the Chief Executive 
Officer, the Chief Financial Officer and the Investor Relations team 
following our trading and results updates, and our April 2023 
Capital Markets Day; and
•	 Responding promptly – the Group is committed to responding 
to any investor-related queries within a short time frame.
Board Leadership and Company Purpose
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GOVERNANCE
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Q How has your first year as a 
Non-Executive Director been 
at Halfords? 
As I fast approach my first anniversary 
as a Non-Executive Director at Halfords, 
I am pleased with the manner in which our 
Halfords colleagues and our management 
team and Board have embraced my joining. 
Our colleagues are our eyes to our customers 
and ensuring we retain a “one Halfords” 
family feel is critical to our long-term success. 
It is a great privilege to be Employee Voice 
Director, to support the nurturing of our 
people and enabling the right coaching 
conversations. My predecessor, Helen Jones, 
established colleague listening groups, which 
continue to run as a wonderful legacy to 
her time on the Board – a note of thanks to 
Helen for establishing mechanisms where our 
colleagues’ voices are heard in addition to our 
Colleague Engagement Survey. 
In my role as Chair of the ESG Committee, 
I have been able to observe first hand our 
focus on the environmental agenda. I am 
also passionate about the ED&I agenda, on 
which I attended many listening sessions in 
late 2023. I was pleased to hear how diversity 
is second nature to our colleagues and 
have been delighted to listen to the strong 
voices of the many diversity champions in 
our business. 
Support our people  
with tools and 
frameworks
Q&A with our newly appointed  
Non-Executive Director, 
Tanvi Gokhale
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I have also been pleased to share my 
perspectives on the development of a 
services-focussed organisation, putting 
customer experience versus product first. 
Halfords is already on this journey, and I 
see opportunity to unleash more potential. 
My experience in financial services offers 
a sound parallel to contribute my ideas 
because there are so many shared lessons 
to learn across industries, especially Financial 
Services and Retail.
In all, it has been a great first year at Halfords. 
Thank you to everyone for welcoming me into 
the Halfords family.
Q What does culture at Halfords 
mean to you?
The culture at Halfords is one where 
colleagues can bring their whole selves to 
work. I have met colleagues from across 
the business (store managers, distribution 
centre colleagues and many others) and the 
resounding sentiment is that our colleagues 
feel a sense of purpose and fulfilment. The 
key overarching themes I hear are focussed 
on how they can continue to do more for 
each other and for our customers. In terms 
of doing more for each other, the consistent 
views are how they can find more time 
to focus on coaching and development 
conversations during their busy days and 
how each Halfords colleague should 
understand the varied career paths on offer.
In terms of doing more for our customers, 
I observe colleagues going above and 
beyond to help fulfil further customer needs 
and adapt to their local markets well. As the 
business has grown recently, it is critical to 
ensure that from an inclusion perspective, all 
colleagues across our businesses feel part of 
the “one Halfords family”. 
Q What have been the key 
highlights in FY24?
Reflecting on the past year, I have found 
myself most enjoying my role when I am on 
the front line with our colleagues, learning 
about how they operate, what could make 
their environment better and how they really 
are the coal face to customer sentiment. In 
short, my key highlight has been my visits. 
The listening sessions on diversity and 
inclusion have been a highlight early on in 
my role, understanding how our colleagues 
feel about diversity and most importantly, 
that there is mutual respect and affinity in our 
colleagues for all who come from different 
walks of life. 
Q What are the key areas of 
focus for you in FY25?
From an Employee Voice perspective, I am 
keen to continue with the listening sessions 
and visits with our colleagues and working 
closely with our Chief People and Property 
Officer, Paul O’Hara, to support our people 
with the tools and frameworks they need to 
have rich, development-focussed coaching 
conversations. On the ESG elements, 
we have recently been through excellent 
training to better understand how ESG 
reporting is evolving, and I am focussed 
on supporting our Management team to 
ensure readiness for the new reporting and 
disclosure standards. 
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Board Composition
At the date of this report, the Board of 
Directors comprised of six members, 
namely the Non-Executive Chair, three other 
Non-Executive Directors and two Executive 
Directors. The composition of the Board is 
set out on page 152, and the biographies of 
each Director, including any other business 
commitments, are available on pages 98 and 
99. The Board believes it has an appropriate 
balance of Executive and independent 
Non-Executive Directors, having regard to the 
size and nature of the business. The Board 
is responsible for the long-term success of 
the Company and is committed to ensuring 
that it provides leadership to the business 
as a whole, having regard to the interests 
and views of its shareholders and other 
stakeholders. It is also responsible for setting 
the Group’s strategy, values and standards. 
Details of the Group’s business model and 
strategy can be found on pages 38 to 52.
Board Changes
On 20 June 2023, Tanvi Gokhale joined as a 
Non-Executive Director of the Board and its 
Committees. At the end of the Annual General 
Meeting (“AGM”), on 6 September 2023, 
Helen Jones retired as a Non-Executive 
Director and was succeeded by Jill 
Caseberry as Senior Independent Director. 
Board Independence
The Non-Executive Directors bring wide 
and varied experience to the Board and its 
Committees. The Code recommends that at 
least half of the Board of Directors, excluding 
the Chair, should comprise Non-Executive 
Directors, who are determined by the 
Board to be independent and are free from 
relationships or circumstances that may 
affect, or could appear to affect, the Non-
Executive Director’s judgment. Following a 
review, the Board considers Jill Caseberry, 
Tom Singer and Tanvi Gokhale to be 
independent in character and judgement. 
The Chair, Keith Williams was considered 
independent upon his appointment.
Re-election 
In compliance with the Code and the 
Company’s Articles of Association, as 
at 17 July 2024, the following Directors 
will seek re-election at the 2024 AGM on 
Friday 6 September 2024: Keith Williams, 
Jill Caseberry, Tom Singer, Tanvi Gokhale, 
Graham Stapleton and Jo Hartley.
Board Key Responsibilities
The Board is collectively responsible for 
the long-term success of the Group and 
is committed to ensuring that it provides 
leadership to the business as a whole, 
having regard to the interests and views of 
its shareholders and other stakeholders. 
It provides leadership and direction on the 
Group’s culture, values and purpose; sets the 
strategic direction; agrees the risk framework; 
and ensures these are managed effectively. 
The Board is accountable to shareholders for 
the financial and operational performance of 
the Group. Details of the Group’s business 
model and strategy can be found on 
pages 38 and 52.
Division of Responsibilities
The roles of Chair and Chief Executive Officer 
are separate and clearly defined, with the 
division of responsibilities set out in writing 
and agreed by the Board. 
The Chair is responsible for effective 
leadership, operation and governance of 
the Board and its Committees. The Chair 
ensures effective communication with 
shareholders, facilitates the contribution of 
the Non-Executive Directors and ensures 
constructive relations between Executive and 
Non-Executive Directors. 
The Chief Executive Officer is responsible for 
the management of the Group’s business and 
for implementing the Group’s strategy.
Together, the Directors act in the best 
interests of the Company via the Board and 
its Committees, devoting sufficient time and 
consideration as necessary to fulfil their 
duties. Each Director brings different skills, 
experience and knowledge to the Company, 
with the Non-Executive Directors additionally 
bringing independent thought and 
judgement. This combination seeks to ensure 
that no individual or group unduly restricts or 
controls decision-making. 
A formal schedule of matters reserved for the 
Board is in place and is annually reviewed as 
referred to above. 
To discharge these responsibilities effectively, 
the Board has a system of delegated 
authorities, which enables the effective 
day-to-day operation of the business and 
ensures that significant matters are brought 
to the attention of management and the 
Board as appropriate. It is through this system 
that the Board is able to provide oversight 
and direction to the Executive Directors, the 
Executive Team and the wider business. 
Matters specifically reserved for the Board 
include: strategy and management; corporate 
structure and capital; investor relations; audit, 
financial reporting and controls; nominations 
to the Board; Executive remuneration; and 
certain material contracts.
Board
Composition
  1
Chair
Executive Directors
  2
Non-Executive Directors
  3
Division of Responsibilities
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Director Tenure and 
Board Succession
Succession planning for the Board is 
monitored regularly and, in particular, is 
considered in detail during the annual 
evaluation of the Board performance as 
described on page 118. Details of the tenure 
for all Board members are as follows:
Board Committees
The Board’s principal Committees are the 
Audit Committee, the Nomination Committee, 
the Remuneration Committee and the 
Environmental, Social and Governance 
(“ESG”) Committee. Each Committee has its 
own Terms of Reference, which are approved 
and regularly reviewed by the Board.
On the following pages, each Committee 
Chair reports how the Committee they chair 
discharged its responsibilities in FY24 and 
the material matters that were considered. 
Following a Committee meeting, the relevant 
Committee Chair provides a report to 
the Board. Whilst not entitled to attend, 
professional advisors and members of senior 
management attend when invited to do so, 
as do those Directors who are not formally 
a member of the relevant Committee. The 
external Auditor attends Audit Committee 
meetings by invitation. No person is 
present at Nomination Committee or 
Remuneration Committee meetings during 
discussions pertinent to them. The Company 
Secretary acts as the secretary to the 
principal Committees.
Matters which require Board approval 
between scheduled Board meetings can 
be approved by a Board Committee, which 
consists of a minimum of two Directors. 
The final wording of market announcements 
is approved prior to release by a Disclosure 
Committee, which is made up of a minimum 
of two Directors. Six Disclosure Committee 
meetings were held during the period.
At Executive level, the day-to-day investment 
decisions of the Group are approved by 
an Investment Committee, chaired by the 
Chief Financial Officer. The Company has 
a Finance Risk Committee, which reviews 
and progresses financial governance, and 
a Treasury Committee, which manages the 
treasury needs of the Group – both of which 
are chaired by the Chief Financial Officer; 
the other members of these Executive 
Committees are senior members of the 
Finance and Treasury teams. 
The Board may establish other ad hoc 
committees of the Board to consider specific 
issues from time to time. 
Keith Williams
Graham Stapleton
Tom Singer
Tanvi Gokhale
Jill Caseberry
Jo Hartley
1 April 2015
1 April 2016
1 April 2017
1 April 2018
1 April 2019
1 April 2020
1 April 2021
1 April 2022
1 April 2023
1 April 2024
1 year, 11 months and 11 days
5 years, 3 months and 11 days
11 months and 11 days
3 years, 8 months and 11 days
6 years, 5 months and 11 days
5 years, 10 months and 11 days
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GOVERNANCE

Nomination Committee
ESG Committee
Key Objectives
To ensure that the Board has the balanced skills, 
knowledge and experience to be effective in discharging 
its responsibilities and to have oversight of all governance 
matters.
Main Responsibilities
Making appropriate recommendations to maintain the 
balance of skills and experience of the Board by:
•	 considering the size, structure and composition of 
the Board;
•	 considering Board and Executive Team succession plans 
with a commitment to improving gender and ethnic 
diversity; and
•	 identifying and making recommendations to the Board on 
potential Board candidates.
Key Objectives
To ensure that the Group has an ESG strategy that is aligned 
with the Group’s strategy.
Main Responsibilities
•	 Development of an ESG strategy including the setting of 
appropriate targets.
•	 Monitoring progress against key targets and initiatives.
Chair: 
Keith Williams
Members: 
•	 Jill Caseberry
•	 Tom Singer
•	 Tanvi Gokhale
Chair: 
Tanvi Gokhale
Members: 
•	 Jill Caseberry
•	 Tom Singer
Audit Committee
Remuneration Committee
Key Objectives
To provide effective governance over the Group’s financial 
reporting processes. This includes the internal audit 
function and external Auditor. The Committee maintains 
oversight of the Group’s systems of internal controls and 
risk management activities.
Main Responsibilities
•	 Making recommendations to the Board on the 
appointment/removal of the external Auditor, and their 
terms of engagement and fees.
•	 Reviewing and monitoring the integrity of the Company’s 
financial statements, including its annual and interim 
reports and preliminary results announcements and 
any other formal announcement relating to its financial 
performance, and recommending the same to the Board.
•	 Assisting the Board in achieving its obligations under the 
Code in areas of risk management and internal control.
•	 Focussing on compliance with legal requirements, 
whistleblowing, accounting standards and the 
Listing Rules.
Key Objectives
To ensure that a Board policy exists for the remuneration 
of the Chief Executive Officer, the Chair, Non-Executive 
Directors, other Executive Directors and members of the 
Executive Management.
Main Responsibilities
•	 Recommending to the Board the total individual 
remuneration package of Executive Directors and 
members of the Executive management. 
•	 Approving senior Executive remuneration and oversight 
of remuneration matters, generally.
•	 Recommending the design of the Company’s share 
incentive plans to the Board, approving any awards to 
Executive Directors and other Executive managers under 
those plans and defining any performance conditions 
attached to those awards.
•	 Determining the Chair’s fee, following a proposal from the 
Chief Executive Officer.
•	 Maintaining an active dialogue with institutional investors 
and shareholder representatives.
Chair: 
Tom Singer
Members: 
•	 Jill Caseberry
•	 Tanvi Gokhale
Chair: 
Jill Caseberry
Members: 
•	 Tom Singer
•	 Tanvi Gokhale
Division of Responsibilities
Halfords Group plc Board of Directors
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Chief Executive Officer
Executive Committee
Key Objectives
•	 Responsible for the day-to-day management of the 
Company.
•	 Develops the Group’s objectives and strategy for Board 
approval.
•	 Creates and recommends to the Board an annual budget 
and financial plan.
•	 Delivers the annual budget and plan and executes the 
agreed Group strategy and other objectives.
•	 Identifies and executes new business opportunities and 
potential acquisitions or disposals.
•	 Keeps the Chair informed on all important matters.
•	 Manages the Group’s risks in line with the Board-
approved risk profile.
Key Objectives
•	 Monitors performance against the implementation of 
the commercial plan, and approves investment against 
strategy.
•	 Acts as the senior steering group for the Transformation 
Programme, approving and monitoring significant 
programme spend and monitoring programme risk.
•	 Oversees the Group’s risk management framework, 
providing assurance over risk mitigation and scanning the 
horizon for emerging risk.
•	 Approves all Group financial investment.
Chair
Senior Independent Director
Key Responsibilities
•	 Manages and provides leadership to the Board.
•	 Builds an effective and complementary Board of 
Directors.
•	 Sets the agenda, style and tone of Board discussions.
•	 Facilitates and encourages active engagement in 
meetings, promoting effective relationships and open 
communication.
•	 Ensures effective communication with shareholders and 
other stakeholders.
•	 Ensures that the performance of individuals and of the 
Board as a whole and of its Committees is evaluated at 
least once a year, and the results are acted upon.
•	 Acts as an advisor to the Chief Executive Officer.
•	 Meets with the Non-Executive Directors without Executive 
Directors being present.
•	 Facilitates the effective contribution of Non-Executive 
Directors.
•	 Ensures constructive relations between Executive 
Directors and Non-Executive Directors.
Key Responsibilities
•	 Provides a sounding board for the Chair.
•	 Holds meetings with the other Non-Executive Directors 
without the Chair at least once a year to appraise the 
Chair’s performance.
•	 Acts as an intermediary for the other Directors.
•	 Is available to other Directors and shareholders in order 
to address concerns that cannot be raised through the 
normal channels.
Employee Voice Director
Key Responsibilities
•	 Ensures colleague feedback is brought to the attention 
of the Board to help shape and influence some of the 
decisions that are taken.
Non-Executive Directors
Company Secretary
Key Responsibilities
•	 Evaluate and appraise the performance of Executive 
Directors and Senior Management against agreed 
targets.
•	 Participate in the development of the Group’s strategy.
•	 Monitor the financial information, risk management and 
controls processes of the Group to make sure that they 
are sufficiently robust.
•	 Meet regularly with senior management.
•	 Periodically visit Group sites, stores and Distribution 
Centres.
•	 Meet without the Executive Directors present.
•	 Participate in a training programme, including store visits 
and updates from management.
•	 Formulate Executive Director remuneration and 
succession planning.
Key Responsibilities
•	 Works closely with the Chair, Group Chief Executive 
Officer and Board Committee Chairs in setting the rolling 
calendar of agenda items for the meetings of the Board 
and its Committees.
•	 Ensures accurate, timely and appropriate information 
flows within the Board, the Committees and between the 
Directors and Senior Management.
•	 Provides advice on Board matters, legal and regulatory 
issues, corporate governance, Listing Rules compliance 
and best practice.
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GOVERNANCE

Step One
Online surveys 
issued to the Board 
members.
Step Two
Received and analysed the feedback 
with the Chair of the Board. The 
Chair produced a note of action 
points to be addressed, which was 
circulated to the Board members.
Step Three
The Chair of each Board Committee 
received the evaluation report in 
relation to their Committee, and 
time was arranged to consider the 
findings and agree an action plan.
Step Four
Implementation and 
monitoring of the 
action plans.
Board Evaluation
A formal Board effectiveness review is conducted on an annual basis. This includes an assessment of the Board, its Committees and 
individual Directors.
FY23
External Evaluation
FY24
Internal Evaluation
FY25
Internal Evaluation
FY24 Evaluation Process
The findings identified by the FY23 external review are as follows:
Topic
FY23 Outcomes
Progress Made in FY24
Delivery of Capital Markets 
Day (“CMD”) targets
Development of a shorter scorecard to consider 
delivery of CMD targets.
During the year, new Board reporting was 
implemented, providing a succinct summary of 
progress towards the targets set at the CMD.
People and culture focus
A focus on people and culture, to ensure the health 
and wellbeing of colleagues, and to concentrate on 
recruitment, turnover and succession to Board and 
management.
The business conducts a Colleague Engagement 
Survey and in pulse surveys on specific issues 
throughout the year. These surveys enable us 
to monitor people issues and to understand the 
cultural matters affecting the business. In addition, 
work is being carried out to address issues relating 
to recruitment and retention at all levels.
Understand our customers
To spend more time understanding our customers 
and progress our successes to build our 
knowledge base and how this can be used to meet 
customers’ needs.
In FY24 we have established the Customer Panel, 
‘The Inside Track’, a key insight tool, growing 
membership to 10,000 customers and successfully 
testing and gaining feedback to help build and 
improve new and existing proposition. We are also 
leveraging wider data and knowledge around our 
customer experience, and were able to improve 
NPS a further 0.7 points from 64.8 to 65.5 in the 
year. In addition, we continued along the trajectory 
on the Halfords Motoring Club, doubling our 
membership to 3.4m members, and achieving an 
8% Premium membership mix.
Board meetings 
To hold more Board meetings in person at the 
Support Centre in Redditch.
More Board meetings in person at the Support 
Centre were held during FY24 than in previous 
years. Board meetings were also held in person 
in London.
Composition, Succession and Evaluation
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The findings identified by the FY24 internal review were as follows:
Topic
FY24 Outcomes
Understanding the business
Given the significant recent M&A transactions which have helped to transform the business, the 
Directors are aware of the need to understand fully the products offered by the whole group 
and how each division interacts with others. To ensure the Board is on top of all the demands of 
the business in FY25, the Directors will increase their visits to the business locations, operations 
and also to the Support Centre. This will ensure that the Directors are able to fully consider the 
opportunities, the risks involved, and any mitigating actions required.
Business landscape / external 
perspective
The governance landscape needs to be monitored carefully and we continue to closely monitor the 
markets in which we operate, to ensure our product offerings remain relevant.
Health and safety
Following changes within the business, with more garage services now being offered, the Board 
is aware of the need to continue, and develop even further, the Group’s investment in health and 
safety matters to ensure risks are fully identified and mitigated accordingly.
Risk Management and 
Internal Control
The Board is responsible for the Group’s risk 
management processes and the system of 
internal control. The Audit Committee has 
a delegated responsibility to keep under 
review the effectiveness of the Group’s risk 
management and internal control framework. 
Throughout the year, the Committee 
maintained oversight to ensure a robust 
process is in place to monitor and evaluate 
the principal risks of the group. The Group’s 
principal risks and mitigating actions are 
detailed in the Strategic Report on pages 82 
to 89. 
The Audit Committee considers the principal 
and emerging risks of the business and 
reviews the mitigating controls with senior 
management. The Group Risk Committee 
reports on the development of the risk 
management framework and provides insight 
to the Audit Committee on regulatory and 
compliance risks.
Our process for identifying, evaluating and 
managing the significant risks faced by the 
Group, and assessing the effectiveness of 
related controls, routinely identifies areas for 
improvement. The Committee has neither 
identified nor been advised of any failings 
or weaknesses that it has determined to be 
material or significant. 
The management of risk and review of the 
internal control environment is a continual 
process supported by all colleagues. The 
Committee supports the development of risk 
maturity and a strong control culture.
Annual General Meeting (“AGM”)
We aim to encourage our shareholders 
to receive communications by electronic 
means, helping to make the Company more 
environmentally friendly. The information 
available on the Company’s website includes 
current and historic copies of the Annual 
Report and Accounts, full and half-year 
financial statements, market announcements, 
corporate governance information, the Terms 
of Reference for the Audit, Nomination, 
Remuneration and ESG Committees and the 
Matters Reserved for the Board.
The AGM gives all shareholders the 
opportunity to communicate directly with the 
Board and their participation is welcomed. It is 
the Company’s practice to propose separate 
resolutions on each substantial issue at the 
AGM. The Chair will advise shareholders on 
the proxy voting details at the meeting.
We look forward to seeing shareholders at 
our AGM on Friday 6 September 2024. 
Tim O’Gorman
Company Secretary
17 July 2024
 halfords.annualreport2024.com
119
GOVERNANCE

Nomination Committee  
meetings held: 
2
Committee Composition
During the year, the Committee comprised:
Keith Williams (Chair)
Jill Caseberry
Tom Singer
Tanvi Gokhale  
(appointed 20 June 2023)
Helen Jones  
(retired 6 September 2023)
CHAIR’S LETTER
The Nomination Committee’s objective is to 
ensure that the Board comprises individuals 
with the necessary skills, knowledge, 
experience and diversity to ensure that 
the Board is effective in discharging its 
responsibilities. The Committee also ensures 
that the composition and structure of the 
Board and its Committees are kept under 
constant review and nominates candidates 
for appointment as Directors to the Board. 
The Committee monitors and develops Board 
and Executive succession plans.
During the year, Tanvi Gokhale was 
appointed as a Non-Executive Director 
on 20 June 2023 and Helen Jones retired 
from the Board at the AGM on 6 September 
2023, having reached her nine-year tenure. 
The Committee also undertook an internal 
annual Board evaluation, the details of which 
can be found on page 119 in the Corporate 
Governance Report.
Looking ahead, the key priorities for the 
Committee are:
•	 to review the size of the Board to ensure 
a variety of opinions are available to 
the Board;
•	 to ensure that the Board maintains the 
skillsets necessary to meet its strategic 
objectives; and
•	 to develop an internal succession plan for 
the current Executive Directors.
By order of the Board
Keith Williams
Chair of the Nomination Committee
17 July 2024
“The Committee monitors and  
develops Board and Executive  
succession plans.”
Keith Williams
Chair of the Nomination Committee
120
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOMINATION 
COMMITTEE REPORT

Main Responsibilities of 
the Committee
•	 Review the size, structure and composition 
of the Board and its Committees.
•	 Ensure plans are in place for orderly 
succession to the Board and senior 
management positions.
•	 Lead the process for appointments by 
identifying and making recommendations 
on potential candidates to join the Board.
Activities During the Year
•	  Induction of Tanvi Gokhale, as the new 
Non-Executive Director.
•	 Continued with the progression of the 
succession and talent development plan, 
taking into account the recommendations 
of the Parker Review.
•	 Reviewed the external FY23 Board 
performance action plan undertaken by 
Ripley Consulting Limited (previously Anne 
Whalley Consulting Limited).
•	 Agreed to undertake an internal FY24 
Board performance evaluation. 
•	 Reviewed the composition of the Board 
and its Committees.
•	 Carried out an annual review of the 
Committee’s Terms of Reference.
•	 Recommended the re-election of the 
Board at the Annual General Meeting.
Board Appointments
On 20 June 2023, Tanvi Gokhale was 
appointed a Non-Executive Director to join 
the Board, the Nomination, the Audit, the 
Remuneration and the ESG Committees. At 
the AGM on 6 September 2023, Helen Jones 
retired from the Board having reached her 
nine-year tenure, following which she was 
succeeded by Jill Caseberry as Senior 
Independent Director, and Tanvi Gokhale 
as Chair of the ESG Committee and as 
Employee Voice Director. 
Board Induction Programme
Introductory Meetings
•	 Meetings held with members of 
the Senior Management Team and 
Executive Committee.
Site Visits
•	 Retail store and Autocentre 
visits, including an introduction to 
Halfords Mobile Expert.
•	 Visit to Coventry distribution centre.
Deep Dive Sessions
•	 In-depth teach-ins with functional 
experts across the business, 
including Strategy, ESG, Customer, 
Commercial and People Teams.
•	 Introductory meeting with Corporate 
Broking teams and advisors.
•	 Meetings with specialist financial 
stakeholders, including Auditors, 
consultants and lending banks.
Director Training
All Directors have the opportunity for ongoing 
development and support via:
•	 A programme of visits to the Support 
Centre, Distribution Centres, stores and 
Autocentres;
•	 Reviews with the Chair to identify any 
training and development needs;
•	 Access to the Company Secretary for 
advice on governance, regulatory and 
legislative changes affecting the business 
or their duties as Directors; 
•	 Access to independent professional 
advice at the Company’s expense; and
•	 Membership of the Deloitte Academy, a 
training and guidance resource for Boards 
and Directors.
Diversity and Inclusion
The Group’s Diversity Policy (“Diversity 
Policy”) sets out Halfords’ commitment to 
eliminate discrimination and to encourage 
diversity and inclusion across the Board 
of Directors and amongst all colleagues. 
Halfords’ Diversity Policy applies to all 
activities, including its role as an employer 
and as a provider of services, ensuring 
that no colleague, potential colleague, 
customer, visitor or contractor will receive 
less favourable treatment on the grounds 
of gender, race, ethnic origin, disability, age, 
nationality, national origin, sexual orientation, 
gender reassignment, marital or civil 
partnership status, pregnancy or maternity, 
religion, beliefs and social class. 
The Company does not currently publish 
specific diversity targets for the majority 
of diversity factors, but, in practice, it has 
created a more balanced and diverse Board 
and Senior Management Team. Half of the 
Board is comprised of women: 29% of the 
Executive Team is female and 21% of their 
direct reports are women. 
In accordance with the 2024 Parker Review 
update, the Group is now required to set 
itself a target for ethnic diversity in its Senior 
management, defined by the Parker Review 
as “Company’s Executive Committee or 
equivalent and those senior managers 
reporting directly to them” to be achieved 
by 2027. The Group has chosen to set a 
target of 7% for this population and will 
report on progress against this target in 
subsequent Annual Reports. Details of the 
current diversity of the Group can be found 
on page 95.
 halfords.annualreport2024.com
121
GOVERNANCE

FY24 Key Activities
•	 Progression of succession and 
talent development plans.
•	 Induction of the new Non-Executive 
Director.
Areas of Focus in FY25
•	 Review the size of the Board to 
ensure a variety of opinions are 
available to the Board.
•	 Ensure that the Board maintains 
the skillsets necessary to meet its 
strategic objectives.
•	 Develop an internal succession plan 
for the current Executive Directors.
Disclosures required by LR 9.8.6(R)9 and LR9.8.6(R)10
As of 25 June 2024, the Group was compliant with all three of the targets on Board diversity prescribed by the Listing Rules as set out below:
1.	at least 40% of the individuals on its board of directors are women;
2.	at least one of the senior positions on its board of directors is held by a woman and;
3.	at least one individual on its board of directors is from a minority ethnic background.
The 25 June 2024 date is used as the reference date for this information as it is the latest practicable date prior to the publication of the 2024 
Annual Report. Between the reference date and the date of publication of the 2024 Annual Report, the structure of the Executive management 
has changed providing more focus on the business units and to ensure that profits are maximised. These changes include the creation of 
managing director roles for Retail Garage and Business to Business.
a.	Table for reporting on gender identity or sex
Number of Board 
members
Percentage of 
the Board
Number of senior 
positions on the Board 
(CEO, CFO, SID and Chair)
Number in 
Executive 
management
Percentage 
of Executive 
management
Men
3
50%
2
5
71%
Women
3
50%
2
2
29%
Other/ prefer not to say 
–
–
–
–
–
b.	 Table for reporting on ethnic background
Number of Board 
members
Percentage of 
the Board
Number of senior 
positions on the Board 
(CEO, CFO, SID and Chair)
Number in 
Executive 
management
Percentage 
of Executive 
management
White British or other White  
(including minority-white groups)
5
83%
4
7
100%
Mixed/Multiple Ethnic Groups
–
–
–
–
–
Asian/Asian British
1
17%
–
–
–
Black/African/Caribbean/Black British
–
–
–
–
–
Other ethnic group, including Arab
–
–
–
–
–
Not specified/ prefer not to say
–
–
–
–
–
Note: Approach to collating diversity data: gender information is extracted from employee database containing all permanent colleague details as at 25 June 2024. Ethnicity 
information is based on voluntary self-declaration. Executive Management is defined as the most senior Executive body below the Board including the Company Secretary but 
excluding administrative and support staff.
122
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOMINATION 
COMMITTEE REPORT

Board Succession
The Halfords Board considers succession 
planning each year in respect of both 
Director roles and the Senior Management 
Team. Senior Executives have well-developed 
skills and experience to fulfil their roles, and 
their skills are constantly updated as new 
challenges arise. A key factor in making 
better decisions is that the business has a 
diverse range of Directors, Executives and 
colleagues. Diversity and gender positions 
are monitored each year to ensure Halfords 
is able to identify any improvements and 
benefits and we are compliant with the 
Parker review.
Looking Ahead
Looking ahead developing an internal 
succession plan for the Executive 
Directors will be a key priority, together 
with undertaking a review of the size of the 
Board to ensure a variety of opinions are 
represented and that the relevant skillsets 
are met.
Keith Williams
Chair of the Nomination Committee
17 July 2024
 halfords.annualreport2024.com
123
GOVERNANCE

ESG Committee  
meetings held: 
3
Committee Composition
During the year, the Committee comprised:
Tanvi Gokhale  
(appointed as Chair 6 September 2023)
Jill Caseberry
Tom Singer
Helen Jones  
(stepped down as Chair on  
6 September 2023) 
CHAIR’S LETTER
This is my first letter as the Chair of the ESG 
Committee and as a Non-Executive Director 
of Halfords, having joined the Board in 
June 2023. I wish to thank my predecessor, 
Helen Jones, for her commitment to ESG at 
Halfords and for the progress that has been 
made in her years as Chair. 
Our strategic approach to ESG is organised 
around the four pillars of Electrification, Net 
Zero, Diversity and Inclusion, and Product, 
Packaging and Waste Management. Although 
other areas, such as Responsible Sourcing 
and Colleague Engagement, remain very 
important to the Group, it is these pillars in 
which we believe the Group can have the 
most positive impact and through which our 
ESG strategy should be focussed. 
During the year, the Committee’s focus 
has been to ensure the delivery of the 
ESG Strategy in line with the roadmap and 
associated targets. We are particularly 
pleased with the progress made on our Net 
Zero commitment, with significant reductions 
in our Scope 1 and Scope 2 emissions and 
strong progress seen in our engagement with 
suppliers to gain better insight into our Scope 
3 emissions. Furthermore, I am pleased to say 
we improved our CDP Score in FY24 to a B-, 
putting Halfords in the “Management” band 
as a Company taking coordinated action on 
climate issues. 
We have also made good progress in our 
contributions to the circular economy. We 
removed 5.4m items of plastic from our 
own-brand packaging and reduced virgin 
plastic by 41% from an FY20 baseline. 
Furthermore, over 16,000 bikes were 
returned via our Bike Xchange programme 
this year, of which approximately 6,000 were 
reconditioned and sold to new customers. 
Separately, we donated over 20,000 bikes 
to charities who specialise in supporting 
poorer communities in Africa to improve living 
standards. 
The ESG strategy and planning roadmap 
must continue to evolve as stakeholder 
expectations change, the Group’s corporate 
strategy develops, and the regulatory 
landscape moves forward. The pace of 
change will impact the Group’s strategic 
response to the risks and opportunities it 
faces. For example, the UK Government’s 
decision in September 2023 to postpone the 
ban on new petrol and diesel cars and vans 
by five years could slow down the adoption 
of electric vehicles, meaning that Halfords 
may need to reconsider the speed at which 
it rolls-out EV servicing capability across the 
business. We are pleased with the progress 
we have made in FY24 and will continue to 
develop our strategy so that it remains fit for 
the future and supports a sustainable future 
for Halfords and for the communities it 
works alongside. 
“I am delighted to be the new Chair of the  
ESG Committee at Halfords and I look  
forward to overseeing continued progress  
in the years ahead.”
Tanvi Gokhale
Chair of the ESG Committee
124
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ESG 
COMMITTEE REPORT

Committee Membership  
and Responsibilities 
The Committee oversees the governance of 
our sustainability strategy and is chaired by 
me, Tanvi Gokhale. The Company Chair, Keith 
Williams, and the Chief Executive Officer, 
Graham Stapleton, whilst not members of 
the Committee, attend the meetings upon 
the invitation of the Committee Chair. There 
were three Committee meetings held during 
the year and after each one, either I or Helen 
Jones, my predecessor, reported to the 
Board on the key issues that we covered. 
Both Helen and I held informal discussions 
between Committee members and ESG 
business leaders regularly throughout the 
year, as well as attending listening groups 
with colleagues from across the business. 
The primary responsibilities of the 
Committee include:
•	 Oversight and continued development of 
our ESG strategy.
•	 Setting KPIs and targets, and monitoring 
progress against those targets.
•	 Ensuring the Group continues to meet 
stakeholder expectations, as appropriate. 
•	 Maintaining the highest possible standards 
of ethical practices in our supply chain.
Looking Ahead
In FY25, our focus will be on further 
progression of our ESG programme, with 
a continued focus on our four core pillars 
of Electrification, Net Zero, Diversity and 
Inclusion, and Product, Packaging and 
Waste Management. We will also continue 
to improve the quality and transparency of 
our sustainability reporting, whilst keeping 
abreast of further changes in regulation and 
reporting standards. 
In Electrification, we are well-positioned to 
support UK customers with the switch to 
electric forms of transport and as I noted 
above, our progress here will be shaped by 
the pace of change in the UK vehicle market. 
Our Net Zero commitment is well established, 
and we have made significant progress in 
reducing our Scope 1 and Scope 2 emissions 
and obtaining a robust understanding of our 
Scope 3 emissions. Our focus in FY25 will be 
to create the strategy and roadmap for Net 
Zero, building upon the strong foundations 
we now have in place. We will also start to 
put more attention on reducing our Scope 3 
emissions, utilising the tools and datasets we 
now have in place to engage positively with 
suppliers. 
Finally, we will make strong progress on our 
Diversity and Inclusion programme in FY25. 
We will refresh our three year roadmap and 
put focus into increasing the diversity of our 
garage leader’s population, whilst changing 
our policies and procedures to remove bias 
and improve inclusivity. We will also invest 
in training and education for a significant 
proportion of the colleague base, whilst 
engaging further with colleagues through 
councils and network groups.
We have made excellent progress in reducing 
virgin plastic use and improving our recycling 
solutions, and this work will continue in FY25 
as we see further opportunities to make 
progress. For example, we believe there is 
more opportunity to reduce virgin plastic use 
in our bike packaging, whilst we are confident 
that we can offer recycling solutions for 
more of our products, such as inner tubes 
and bulbs. 
Tanvi Gokhale
Chair of the ESG Committee
17 July 2024
What we did in FY24
•	 Monitored progress of the ESG 
strategy, with a particular focus on 
the four pillars of Electrification, 
Net Zero, Diversity and Inclusion, 
and Product, Packaging and Waste 
Management. 
•	 Reviewed overall ESG performance 
and future priorities. 
•	 Reviewed an update to the Diversity 
and Inclusion strategy.
•	 Undertook Board-level training 
on the reporting and disclosure 
landscape for Sustainability 
Reporting. 
•	 Reviewed ESG Strategy and TCFD 
reporting for inclusion in the 
Annual Report. 
Further information on the Group’s 
approach to managing ESG, 
performance against the priority 
areas and performance data can 
be found on pages 54 to 74 of the 
Strategic Report.
 halfords.annualreport2024.com
125
GOVERNANCE

“Working with management to progress and 
improve financial reporting, internal controls 
and risk management processes.”
Tom Singer
Chair of the Audit Committee
Audit Committee  
meetings held: 
5
Committee Composition
During the period, the Committee comprised:
Tom Singer (Chair)
Jill Caseberry
Tanvi Gokhale  
(appointed 20 June 2023)
Helen Jones  
(retired 6 September 2023)
CHAIR’S LETTER
I am pleased to present the report of the 
Audit Committee for the 52-weeks ended 
29 March 2024. 
This report describes how the Committee 
has carried out its responsibilities during 
the period. The Committee reviews financial 
reporting judgements and monitors risk 
and the effectiveness of the system of 
internal control through engagement with 
Executive management, internal audit and the 
external Auditor.
During the period, the Committee considered 
several key issues, most notably:
•	 The FY23 prior period misstatements in 
relation to Goods Received Not Invoiced 
(“GRNI”) and supplier arrangements 
including root cause analysis and control 
improvements made as a result;
•	 The carrying value of investments, 
intangible assets, right of use assets and 
property, plant and equipment in light of 
the financial performance of the Group; 
•	 The changes in BEIS proposals for Audit 
and Corporate Governance reform, 
considering the impact on our reporting 
and control environment;
•	 The accounting treatment and 
controls relating to the transition of 
tyre warehousing and distribution 
to a third-party logistics provider, 
the consequent discontinuation of 
existing operations, and the related 
accounting treatment;
•	 The response to a letter received from the 
Financial Reporting Council requesting 
information relating to Halfords FY23 
Annual Report and Accounts during the 
period;
•	 The evaluation of the FY23 audit process;
•	 The results of the External Auditors Audit 
Quality Review (“AQR”);
•	 External audit partner rotation; and
•	 Monitoring the acceleration of our 
business and financial controls 
programme, in particular in relation to 
control issues identified as part of the 
external audit for the period ended 
31 March 2023.
Tom Singer
Chair of the Audit Committee
17 July 2024
126
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
AUDIT 
COMMITTEE REPORT

FY24 Key Activities
•	 Reviewed and approved the Committee’s 
updated Terms of Reference.
•	 Carried out our responsibilities as set out 
in the Terms of Reference, including the 
review of external reporting to ensure it is 
fair, balanced and understandable.
•	 Reviewed and challenged the longer-term 
Viability Statement and Going Concern 
basis of preparation in advance of approval 
by the Board, including a review of the 
carrying value of goodwill. This assessment 
was inclusive of stress testing to ascertain 
the level of headroom in the plans against 
possible covenant breach.
•	 Reviewed and challenged the external 
Auditor’s year-end and half-year reports.
•	 Reviewed the statement of external 
Auditor’s independence.
•	 Reviewed and approved the external 
Auditor’s audit strategy and fees.
•	 Approved the non-audit fee policy.
•	 Carried out a formal assessment of BDO’s 
performance in relation to the FY23 audit.
•	 Monitored and reviewed controls and 
process improvements put in place as a 
result of the prior period misstatements.
•	 Reviewed disclosures in regard to the prior 
period misstatements.
•	 Discussed and agreed Audit partner 
rotation.
•	 Reviewed accounting treatment 
and controls over transition of 
tyre warehousing and distribution 
arrangements to a third-party logistics 
provider.
•	 Reviewed key and emerging risks and 
the effectiveness of the Group’s risk 
management framework and considered 
risk appetite.
•	 Reviewed and challenged progress of the 
Internal Audit plan and received regular 
updates on internal control systems.
•	 Reviewed and approved the Information 
Security Management Policy.
•	 Review cyber risk and associated strategy.
•	 Reviewed and approved the Internal Audit 
Program.
•	 Received an update on the Group’s GDPR 
compliance, and on health and safety 
matters.
•	 Reviewed and challenged the effectiveness 
of the Group’s whistleblowing 
procedures and approved the Group 
Whistleblowing Policy.
•	 Reviewed and approved the Anti-Money 
Laundering Policy.
•	 Reviewed and approved the Anti-Bribery 
and Corruption Policy.
•	 Received regular updates on the Gifts and 
Hospitality register.
•	 Reviewed and approved the Group’s tax 
strategy and arrangements.
•	 Reviewed the plan for Halfords’ response 
to BEIS proposals.
•	 Reviewed the Corporate offence of failure 
to prevent tax evasion policy.
•	 Reviewed the approach to Halfords 
identity and access management project.
•	 Requested internal Audit to advise on 
the formalisation of our approach to 
determining risk appetite.
•	 Requested regular reports from 
management on our approach to 
managing cyber risks and access controls 
over information technology systems.
•	 Reviewed and ensured FCA compliance.
•	 Oversaw the Group’s ongoing Finance 
transformation programme.
•	 Checked to ensure we have adequate 
distributable reserves to legally 
pay dividends.
Areas of Focus 
•	 Continue to monitor the impact of 
macroeconomic issues upon the 
Group’s Viability Statement and 
Going Concern assessment.
•	 Continue emphasis on the quality 
of financial reporting, including the 
application of accounting judgment.
•	 Maintain focus on the adequacy 
of the control environment and 
further development of the risk 
management framework, with 
particular emphasis on complying 
with the outcome of the BEIS 
recommendations on audit and 
governance.
 halfords.annualreport2024.com
127
GOVERNANCE

The effects of the current economic crisis 
have led to a challenging macroeconomic 
environment for UK consumer-facing 
businesses. This further underlines the 
importance of a robust risk management 
process and strong financial controls, key 
topics that have been high on the agenda for 
the Audit Committee in FY24. 
Halfords Annual Report and Accounts was 
selected by the Financial Reporting Council 
(“FRC”) for review for the period ended 
31 March 2023. On 29 January 2024, the 
FRC raised queries in relation to the nature 
of the third-party logistics arrangement 
and supplier financing and the cash flow 
statement disclosure. Additionally, the 
FRC raised some observations to take into 
account when considering whether any 
improvements can be made to future financial 
reporting. Following correspondence, the 
review was closed on 21 March 2024 and 
disclosure enhancements have been made 
to the Consolidated Financial Statements 
for the period ended 29 March 2024. 
The Audit Committee reviewed Halfords 
correspondence with the FRC and 
discussed with management the disclosures 
incorporated in the Consolidated Financial 
Statements in response to the FRC review.
Halfords completed the acquisition 
of Capital Tyres during the current 
financial period. The Audit Committee 
reviewed the accounting treatment of the 
transaction, ensuring that the judgments 
were appropriate.
On 25 January 2024, the Group announced 
its intention to enter a strategic partnership 
with specialist tyre distributor Bond 
International and close its existing tyre 
operation. As a consequence, on 22 February 
2024, the Group sold Birkenshaw Distributors 
Limited and the wholesale customers of 
Stepgrades Motor Accessories Ltd (“Viking”) 
to Bond International. On 22 March 2024, 
the remaining principal operations of 
Viking ceased.
The Audit Committee reviewed the proposed 
process and control framework to be 
introduced following the closure of Viking 
and outsourcing of tyre warehousing and 
distribution to Bond.
The Audit Committee also reviewed the 
judgements made and financial disclosures 
required as a result of this transaction 
including the treatment of Viking as a 
discontinued operation within the underlying 
results of the Group and classification of 
various items as non-underlying in the Group 
Income Statement.
Finally, the Committee reviewed the 
Company’s principal risks, ensuring that 
robust risk mitigation was in effect during the 
period and that emerging risks were identified 
and flagged appropriately. 
I would like to thank the members of the 
Committee, the management team and our 
external Auditor for the open discussions 
that take place at our meetings and their 
contribution and support during the period.
Committee attendance can be found on 
page 94 in the Corporate Governance Report.
Five scheduled and two ad hoc Committee 
meetings were held during the period 
and attended by all members. After each 
Committee meeting, the Audit Committee 
Chair reported to the Board on the key 
issues discussed. 
Although the Company Chair, CEO and CFO 
are not members of the Committee, they do 
attend meetings regularly and so contribute 
to the work of the Committee, assisting with 
the fulfilment of its oversight functions.
Membership and Remit of the 
Audit Committee
During the period, the members of the 
Audit Committee were considered to be 
independent Non-Executive Directors. 
Tom Singer is a Non-Executive Director and 
Chair of the Audit Committee of Mukuru 
and a Non-Executive Director and Chair of 
the Audit Committee of Vue International 
Group. Tom was also Senior Independent 
Director and Chair of the Audit and 
Remuneration Committees at DP Eurasia NV 
and a Non-Executive Director of Mediclinic 
International plc. Previously, Tom served 
as CFO of InterContinental Hotels Group 
plc and Group Finance Director of British 
United Provident Association (“BUPA”), and, 
as such, is considered by the Board to have 
recent and relevant financial experience 
to chair the Committee. Each of the other 
independent Non-Executive Directors has, 
through their other business activities, 
significant experience in financial matters. 
The Audit Committee is considered to have 
competence relevant to the sector in which 
128
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
AUDIT 
COMMITTEE REPORT

the Company operates. The effectiveness 
of the Audit Committee is reviewed at least 
annually through discussions at the Board 
and Audit Committee and through a formal 
Board survey. 
The Company’s Chair, Executive Directors, 
senior managers and key advisors are invited 
to attend meetings, as appropriate, in order 
to ensure that the Committee maintains a 
current and well-informed view of events 
within the business and reinforce a strong risk 
management culture. The Audit Committee 
meets according to the requirements of the 
Company’s financial calendar. The meetings 
of the Audit Committee also provide the 
opportunity for the independent Non-
Executive Directors to meet without the 
Executive Directors present and to raise any 
issues of concern with the internal audit team 
and external Auditor. There have been seven 
such meetings in the period ended 29 March 
2024 and nothing of note was reported.
Principal Responsibilities 
Financial Reporting
•	 Review the interim and final financial 
statements of the Group and assess 
whether appropriate suitable accounting 
policies have been adopted, and whether 
management has made appropriate 
estimates and judgements. Assess the 
appropriateness of disclosures in the 
Annual Report and Accounts and ensure 
that it is fair, balanced and understandable.
Risk and Control Environment
•	 Assist the Board in achieving its obligations 
under the UK Corporate Governance 
Code in areas of risk management and 
internal control, focussing particularly 
on compliance with legal requirements, 
accounting standards and the 
Listing Rules.
•	 Review the risk management framework 
and the principal risks and mitigation 
strategies, including the investigation of 
fraudulent activity. 
Internal Audit
•	 Review reports from Internal Audit on 
developments in the internal control 
framework to ensure that an effective 
system of internal financial and 
non-financial control is maintained on an 
ongoing basis.
External Audit
•	 Make recommendations to the Board on 
the reappointment of the external Auditor, 
including on effectiveness, independence, 
non-audit work undertaken (against a 
formal policy) and remuneration.
Policies
•	 Approve a formal Whistleblowing Policy 
whereby colleagues may, in confidence, 
disclose issues of concern about 
possible malpractice or wrongdoings by 
any of the Group’s businesses or any of 
its employees without fear of reprisal, 
including arrangements to investigate and 
respond to any issues raised.
•	 Approve the Company’s systems and 
controls for the prevention of bribery and 
corruption, including the receipt of any 
reports on non-compliance. 
•	 Approve the Group’s Tax Policy and 
published tax strategy.
•	 Approve the Group’s Treasury Policy, 
including foreign currency and interest 
rate exposure.
The Audit Committee has reviewed its Terms 
of Reference and its composition during 
the period and believes that both remain 
appropriate.
The Terms of Reference for the Committees 
are available at www.Halfordscompany.
com/environment-social-and-governance/
governance/committees-terms-of-
reference/.
Matters Considered in Relation to 
the Financial Statements
In order to discharge its responsibility to 
consider accounting integrity, the Committee 
carefully assesses key judgements applied in 
the preparation of the consolidated financial 
statements, which are set out on pages 168 
to 173. 
The Committee has considered the following 
key accounting judgements during the period:
Impairment of Goodwill Associated 
with the Group’s Retail and 
Autocentres groups of Cash 
Generating Units (“CGUs”) :
•	 The Group balance sheet contains 
£403.6m (2023: £403m) of goodwill across 
Retail and Autocentres CGUs. There are a 
number of factors that could impact on the 
future profitability of the business (e.g. loss 
of customer confidence, change in market 
behaviour) and, therefore, there is a risk 
that the business may not meet the growth 
projections necessary to support the 
carrying value of the CGUs (see Note 12 on 
page 195 of the Financial Statements);
•	 The Audit Committee has received detailed 
reports from Halfords’ finance team 
addressing this issue. The finance team 
has undertaken detailed work to consider 
the impairment of goodwill associated with 
the CGUs. Consideration has been given to 
ensuring that cash flow models, discount 
rates, sensitivity analysis and store and 
centre profitability are all reasonable. The 
Committee concluded that it is satisfied with 
the impairment assessment of goodwill.
•	 The Audit Committee have also reviewed 
the carrying value of the investments held 
by the Parent company. At the balance 
sheet date, the parent company held an 
£817.6m (2023: £813.8) investment in 
subsidiaries. Using the same cashflow 
projections as those used for Goodwill 
impairment, the Committee has similarly 
concluded that there should be no 
impairment of the carrying value of the 
investment.
•	 Finally, the finance team also reviewed 
the recoverability of an intercompany 
receivable balance and concluded that 
an impairment of £35m was required. The 
Audit Committee reviewed the proposed 
impairment and concluded it was 
appropriate.
Valuation of Inventory Within the 
Retail Division:
•	 With the business holding a wide range of 
stock and changing consumer demands, 
some lines will not be sold or will be sold 
at below the carrying value. Provisions are 
made to reflect this. Given the inherent 
difficulties of forecasting market trends, 
there is a risk that inventory provisions 
made will be inappropriate or incomplete 
(see Note 15 on page 199 of the Financial 
Statements). Management has fully 
reviewed the inventory provision in the 
current period, and believes the level of 
provisioning is appropriate. Range reviews 
are regularly undertaken to ensure that all 
discontinued inventory is identified.
•	 The Audit Committee has received 
detailed reports from Halfords’ finance 
team addressing this issue. The finance 
team has undertaken detailed work 
around the valuation of inventory within 
the Retail division. After consideration of 
the accuracy of the provisioning model, 
the completeness and accuracy of range 
reviews, and the reflection of these reviews 
within the provisions, the Committee 
concluded that it is satisfied with the 
accounting treatment of the valuation of 
inventory.
 halfords.annualreport2024.com
129
GOVERNANCE

Non-Underlying Items and Alternative 
Performance Measures
The Group recorded a net debit of £3.8m 
in Non-Underlying items in FY24 within 
continuing operations, having recorded a 
larger debit in the previous period.
The debits in both periods were material 
due to strategic redundancy costs due 
to the restructure of the Support Centre, 
the costs in relation to the replacement 
of the warehouse management system 
and acquisition costs in regards to Lodge 
and Capital Tyres. In the current period, 
professional costs have also been incurred in 
relation to a strategic review of procurement 
and related activities and professional fees 
incurred as a result of the Avayler separation. 
The Group recorded a net debit of £6.9m 
in Non-Underlying items in FY24 within 
discontinued operations. These related to 
organisational restructuring costs offset by 
the gain on disposal of certain assets. 
The Audit Committee has reviewed 
management’s assessment of 
Non-Underlying items and is satisfied that 
the correct accounting treatment has 
been applied.
Management has continued to use Alternative 
Performance Measures (“APMs”) to provide 
the reader with a more insightful analysis of the 
Group’s performance. The Audit Committee 
has reviewed the use of APMs and is satisfied 
this strikes an appropriate balance for the 
benefit of the reader of the accounts.
Halfords’ Preparedness for BEIS’ 
Proposed Reforms to Audit and 
Corporate Governance
The Committee continues to stay abreast of 
updates from the Government and reviews 
Halfords’ preparedness for the reforms at 
each meeting. The most significant piece of 
reform is the likely requirement for enhanced 
internal controls and the associated reporting 
of their effectiveness. The Group’s response 
to this is well underway, having invested in a 
team of controls specialists to put in place 
Risk and Controls matrices and testing 
programmes. 
External Auditor
BDO UK LLP (“BDO”) present their audit plan, 
risk assessment, and audit findings to the 
Committee, identifying their consideration 
of the key audit risks for the period, and 
the scope of their work. These reports are 
discussed throughout the audit cycle. 
Effectiveness of External Audit
The effectiveness of the external audit is 
considered throughout the period through, 
amongst other factors: assessment of the 
degree of the audit firm’s challenge of key 
estimates and judgements made by the 
business; feedback from any external or 
internal quality reviews on the audit; and 
the wider quality of communication with the 
Committee.
In addition, at its meeting in March 2024, 
the Committee reviewed the External Audit 
Planning document prepared by BDO. 
Following this, the Committee concluded that:
•	 The overall audit approach, materiality, 
threshold, and areas of audit focus were 
appropriate to the business; and
•	 The audit team possessed the necessary 
quality, expertise and experience to provide 
an independent and objective audit.
The Audit Committee is aware that the 
external Auditor has been subject to a review 
by the FRC’s Audit Quality Review (“AQR”) 
team in respect of the audit of the 52-week 
period ended 31 March 2023. The Audit 
Committee Chair shared the AQR Inspection 
Report with the Audit Committee and also 
discussed the findings directly with the BDO 
partner. The Audit Committee noted the 
scope of the review and the key findings 
raised, together with BDO’s proposed plan to 
address the findings. The Audit Committee 
was satisfied with BDO’s response to address 
the findings raised, and the BDO plan was 
implemented as part of the audit for the 52-
week period ended 29 March 2024.
Approach to Appointment 
or Reappointment
Halfords confirms that it was in compliance 
with the provisions of the Statutory Audit 
Services for Large Companies Market 
Investigation (Mandatory Use of Competitive 
Tender Processes and Audit Committee 
Responsibilities) Order 2014 throughout the 
financial period ended 29 March 2024.
BDO was appointed as external Auditor to 
the Group in 2019 following a formal tender 
process. The Audit Committee considers that 
the relationship with the Auditor is working 
well and is satisfied with its independence, 
objectivity and effectiveness and has not 
considered it necessary to require BDO to 
re-tender for external audit work this period. 
The Audit Committee has recommended to 
the Board, for approval by shareholders at 
the Annual General Meeting on 6 September 
2024, the reappointment of BDO as external 
Auditor. The Audit Committee monitors, and 
will continue to comply with, best practice 
and external guidance with respect to the 
frequency of audit tenders. 
Diane Campbell was appointed as the Lead 
Audit Partner for the 2019/20 audit and 
is, therefore now in her fifth annual audit 
cycle. Diane will serve a maximum term 
of five annual audit cycles and, therefore, 
will be replaced for next year’s audit. Her 
replacement, Sophie Michael, will take over 
as Lead Audit Partner for the 2024/25 
audit cycle. 
Approach to Safeguarding Objectivity 
and Independence if Non-Audit 
Services are Provided
The Audit Committee has established a 
policy to ensure that any non-audit services 
delivered by the external Auditor will not 
jeopardise objectivity and independence. 
The policy is consistent with the Ethical 
Standards for Auditors.
The policy specifies:
“The external Auditor can be used to provide 
non-audit services subject to any non-audit 
engagement proposal provided by the 
external Auditor being formally approved 
by the Audit Committee before contractual 
arrangements are entered into, except 
for activities set out in a list of prohibited 
activities. Other than for these, for each 
separate service proposed to be provided by 
the external Auditor, the Group Chief Financial 
Officer will prepare a note either to be tabled 
and minuted at an Audit Committee meeting 
or to be circulated via email to the Audit 
Committee members and the Chief Executive 
Officer giving a description of the work to be 
undertaken, the reasons why the external 
Auditor is involved in the proposal and how 
objectivity and independence has, and is 
seen to be, safeguarded.
In addition, the fees for any proposal for 
non-audit services will not exceed 70% of the 
three-year average statutory audit fees when 
taken into consideration with total fees for 
non-audit services already committed in the 
financial year.
Consent is required from the Audit 
Committee Chair, on behalf of the Audit 
Committee, before the external Auditor can 
be engaged for non-audit services.”
In addition, the external Auditor follows 
its own ethical guidelines and continually 
reviews its audit team to ensure that its 
independence is not compromised.
130
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
AUDIT 
COMMITTEE REPORT

An analysis of the fees earned by the external 
Auditor is disclosed in Note 3 to the Financial 
Statements on page 188.
Role and Effectiveness 
of Internal Audit
Internal Audit follows an annual risk-based 
programme of audits to review the 
effectiveness of the control environment. 
The Audit Committee reviews the annual 
audit programme for coverage and may 
revise it according to changing business 
circumstances or requirements. The Audit 
Committee ensures that there are sufficient 
resources to undertake the audit programme.
The Head of Internal Audit attends each 
Committee meeting, providing a summary 
of audit findings and an update on progress 
against the plan. The Committee also reviews 
the status of the implementation of audit 
recommendations ranked by age and level of 
risk to the business. All Internal Audit reports 
are shared upon completion with the external 
Auditor. Internal audits are financial and 
non-financial and, during the period, included 
Inventory, Payroll, Financial Controls, Supplier 
Management and Fleet Management.
The Head of Internal Audit reports to the 
CFO, but maintains direct and regular 
communication with the Audit Committee 
Chair outside of Committee meetings.
The Audit Committee is satisfied that 
the Internal Audit team has the quality, 
experience, and expertise appropriate for 
the business.
Alongside the Internal Audit programme, the 
team also continued to drive the Group’s risk 
management framework. 
Whistleblowing
A Whistleblowing Policy and procedure 
(the “Policy”) enables colleagues to 
report concerns on matters affecting 
the Group or their employment, without 
fear of recrimination. Posters publicising 
whistleblowing channels are distributed to all 
stores, Autocentres, Distribution Centres and 
the Support Centre.
The Policy was reviewed and approved by 
the Audit Committee, and the Company 
Secretary provides the Audit Committee 
with a regular summary of whistleblowing 
contacts and resolutions.
Anti-Bribery and 
Corruption Policy
The Group’s Anti-Bribery and Corruption 
Policy statement reinforces that the 
Halfords Board is committed to conducting 
its business affairs in a way that ensures it 
does not engage in or facilitate any form of 
corruption. It is Halfords’ policy to prohibit all 
forms of corruption amongst its colleagues, 
suppliers and any associated parties acting 
on its behalf. The Group has a detailed 
Anti-Bribery and Corruption Policy and 
maintains a Gifts and Hospitality Register. 
Anti-bribery expectations are set out in 
standard purchasing terms and conditions. 
Face-to-face and online training has been 
provided to colleagues to raise awareness of 
anti-bribery and corruption legislation.
The Audit Committee has requested that 
anti-bribery and corruption safeguards are 
periodically reviewed by Internal Audit.
Internal Control and 
Risk Management
The Board is responsible for the Group’s risk 
management processes and the system 
of internal control. The Audit Committee 
contributes to this purpose by providing 
oversight and challenge to the Group’s risk 
management framework. An Executive 
Risk Committee formed in the prior period 
reports to the Audit Committee on the risk 
management framework, providing insight 
on principal and emerging risks, risk appetite 
and ongoing updates on regulatory and 
compliance risk. 
At each meeting during the period, the 
Committee received a presentation on the 
Group’s control framework in preparation 
for changes to the UK’s governance and 
reporting.
Further details of the Group’s internal control 
and risk management framework are set out 
on pages 81 and 82.
Tom Singer
Chair of the Audit Committee
17 July 2024
 halfords.annualreport2024.com
131
GOVERNANCE

“Good progress has been made strategically 
in further optimising the business to create a 
solid foundation for future growth.”
Jill Caseberry
Chair of the Remuneration Committee
Remuneration Committee  
meetings held: 
6
Committee Composition
During the year, the Committee comprised:
Jill Caseberry (Chair)
Tom Singer
Tanvi Gokhale 
(appointed 20 June 2023)
Helen Jones  
(retired 6 September 2023)
CHAIR’S LETTER
On behalf of the Remuneration Committee, 
I am pleased to present the Remuneration 
Report for the financial year ended 
29 March 2024.
The Report consists of four sections:
•	 This Chair’s statement providing a 
summary of pay outcomes for FY24 and 
our approach for FY25;
•	 Remuneration at a glance;
•	 A summary of our Directors’ Remuneration 
Policy – The Company’s Directors’ 
Remuneration Policy (the “Policy”) was 
approved at the 2023 Annual General 
Meeting. A copy of our full Policy is 
available on our website (Remuneration 
Policy – Halfords Group plc (www.
halfordscompany.com/environment-social-
and-governance/governance/policies/
remuneration-policy/); and 
•	 The annual Directors’ Remuneration 
Report – this summarises the remuneration 
outcomes for FY24 and explains how we 
intend to apply the Remuneration Policy 
in FY25. 
Performance in the Year
Underlying profit before tax (“PBT”) was 
down 7.9% to £43.1m, on a reported basis 
(which excludes discontinued operations), 
and 18.3% lower, to £36.1m, including 
discontinued operations. This profit 
performance reflects the backdrop of very 
challenging markets and ongoing cost 
inflation well above normal levels. 
The focus of the management team has 
been to deliver on the areas that are within 
its control. Good progress has been made 
strategically in further optimising the 
business to create a solid foundation for 
future growth. The Group took market share 
in all four of its core markets, whilst the cost 
and efficiency programme continued to 
deliver significant savings. Progress has, 
however, been offset by external factors; in 
particular, the Consumer Tyres and Cycling 
markets declined in the period and consumer 
demand for big-ticket purchases remained 
subdued, whilst high cost inflation continued. 
Looking forward to FY25, the management 
team is cautiously planning on another 
year of headwinds, but has confidence in 
continuing to deliver the strategy that has 
positioned Halfords well for the future.
Remuneration Outcomes in 
Respect of the Year
The annual bonus for FY24 was based 
80% on financial measures (Underlying 
Group Profit Before Tax – 50%, Group 
Revenue – 10%, Free Cash Flow – 10%, 
Cost as a percentage of sales – 10%) and 
20% on strategic metrics (NPS, Colleague 
Engagement, Market Share, Colleague 
Turnover all equally weighted). Revenue 
performance for FY24 was £1,696.5m 
(+7.9%) which was between threshold 
and target. Free Cash flow performance 
was £29.1m which was between target 
and stretch. PBT performance was below 
threshold reflecting the challenging markets 
outlined above.
We made good progress against the 
strategic measures included in the plan. 
Our focus on customers and service 
resulted in both Customer NPS and Market 
Share targets being exceeded, and whilst 
material progress was made on employee 
engagement and reducing employee 
turnover, we did not meet the ambitious 
targets we set at the beginning of the year. 
132
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

Further details on performance against the 
strategic targets can be found on pages 48 
to 52. Based on the outcomes of both the 
financial and non-financial measures, this 
would have resulted in a formulaic annual 
bonus outcome of 28.2% of maximum 
being payable.
Considering the context of wider business 
performance in the year, the Executive 
Directors and Committee mutually agreed 
that no bonus should be paid. This considered 
factors including the overall shareholder 
experience and PBT performance. Although 
we were pleased to make bonus payments 
to our Autocentre and Retail colleagues 
where applicable. Support Centre colleagues 
received no bonus due to the profit before 
tax outcome being below the threshold for 
bonus payment. 
Therefore, the annual bonus payable for 
Executive Directors in FY24 was 0% of the 
maximum opportunity.
The 2021 Performance Share Plan (“PSP”) 
was based on Underlying EPS (50% of the 
award), Group Services related sales (20% 
of the award) and Relative TSR (30% of 
the award). Based on performance against 
the targets the award has lapsed in full. No 
discretion was applied to this outcome.
Remuneration for FY25
The current Directors’ Remuneration Policy 
(the “Policy”) was approved by shareholders 
in September 2023. As part of this process, 
the Remuneration Committee reviewed the 
previous policy to assess whether it remained 
fit for purpose and continued to best support 
the business. The general view was the 
structure remained appropriate to support 
the strategy, so no major amendments 
were made to the structure of pay, incentive 
opportunities or governance features. This 
view was confirmed by the level of support 
received at the 2023 AGM where over 99% of 
shareholders voted in favour of the resolution.
This Policy will continue to apply in FY25 and 
after undertaking a review of performance 
metrics in the year, the Committee 
determined to adjust the measures on the 
annual bonus plan. Given the importance and 
focus of the business in this period, we have 
increased the weighting on financial metrics 
to 90% overall. This is also to ensure the 
metrics remain best aligned with our ongoing 
strategy, remain motivational for participants 
and ensure emphasis on profit growth, cost 
reduction and cash flow improvements, all 
of which are crucial for the business whilst 
we continue to operate in challenging and 
exceptional short-term market conditions. 
As a result, the annual bonus plan for FY25 
will consist of four measures, with 60% of the 
bonus opportunity weighted on Underlying 
Group Profit Before Tax, 20% on Free Cash 
Flow, 10% on Cost as a percentage of 
Revenue and 10% on Strategic Measures 
(NPS and Colleague Engagement both 
equally weighted). 
It is not proposed to make any amendments 
to performance measures under the long-
term incentive plan. The quantum awarded 
will remain the same as in FY24 (annual 
bonus: 150% of salary; PSP: 200% of 
salary). Based on the current share price, the 
Committee is of the view that no adjustment 
is required to the award level, however, the 
Committee will take this into account when 
determining award levels in the Autumn. 
Salaries will be reviewed in the year with 
increases effective from 1 October 2024. 
The Committee’s intentions are that increases 
will not exceed those for the wider workforce. 
Pension allowances for both Directors have 
been aligned with the maximum employer 
pension contribution currently available to the 
majority of the workforce of 3%.
Concluding Remarks
The Committee is committed to an open 
dialogue with shareholders and institutional 
investor bodies on remuneration matters 
and is also aware of the importance of 
considering broader stakeholder experiences 
in the year, including shareholders and our 
colleagues. This is reflected in our consistent 
use of discretion in recent years where 
outcomes are not representative of business 
performance in the year.
The Committee also considers voting on 
Annual General Meeting resolutions and 
is pleased with the high level of support 
received, historically, for its Annual Reports 
on Remuneration and for the renewal of the 
Remuneration Policy in 2023. 
Additionally, the Committee has sought to 
promote a remuneration environment that 
strongly aligns the commercial direction of 
the Group with the interests of shareholders 
and regularly keeps up to date with best 
practice developments and market trends. 
I look forward to your support for the FY24 
Annual Directors’ Remuneration Report at the 
Annual General Meeting.
Jill Caseberry
Chair of the Remuneration Committee
17 July 2024
2023 PSP awards
PSP awards were granted on  
12 December 2023 at 200% of base 
salary to the CEO and CFO. 
Awards were based on Underlying 
EPS Growth (40%), Relative TSR (40%) 
and Group Services-Related Sales 
(20%). In light of the macroeconomic 
uncertainty around the time of award, 
the Committee was still reviewing the 
performance measures and targets 
for the 2023 PSP awards and these 
were not disclosed with the FY23 
Remuneration Report. These targets 
were determined before the award was 
made and are now set out on page 141.
 halfords.annualreport2024.com
133
GOVERNANCE

Remuneration at a Glance
At Halfords, the reward principles and framework is consistent across all colleague populations – although remuneration levels vary to reflect 
market salary and benefits benchmarks across all roles.
Colleagues
Managers
Senior Managers
Executive Team
Salary
Y
Y
Y
Y
Pension
Y
Y
Y
Y
Paid holiday
Y
Y
Y
Y
Share plans
Y
Y
Y
Y
Bonus/incentives
Y
Y
Y
Y
Death in service
Y
Y
Y
Y
Car allowance or car
Job need
Market dependent
Y
Y
Private medical
N
N
Y
Y
Why is Reward Structured Differently at Senior Levels?
The UK Corporate Governance Code protects the interests of shareholders by ensuring that reward is structured in a way that ensures 
Executives make the right long-term decisions for the business to deliver sustainable long-term shareholder value in a way that is consistent 
with our culture and values. As a consequence, a high proportion of Executive reward is directly linked to long-term performance, resulting in 
“variable pay”, which only pays out when the Company does well. The Executive Directors participate in two variable reward plans as follows 
(further details can be found on pages 140 and 141):
Annual Bonus
Targets are assessed over the financial year based on performance against financial and strategic measures 
(one-third of any payment is deferred into a Deferred Bonus Plan for three years after payment).
Performance Share 
Plan (“PSP”)
Targets are assessed over three financial years. Vested awards are subject to a two-year holding period.
134
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

Executive Directors’ Remuneration
0
100
200
300
400
500
600
700
800
CFO (Jo Hartley)
CEO (Graham Stapleton)
£650k
£425k
£XXk
£650k
£425k
£0k (nil)
£0k (nil)
 Fixed pay   Annual bonus   PSP
Annual Bonus and Long-Term Incentive Plan Outcomes
The charts below show the results of the performance targets for the annual bonus and PSP.  
Further information on the outcomes for the annual bonus is shown on page 140 and for the PSP on page 141. 
FY24 Annual Bonus
0%
20%
40%
60%
80%
100%
Actual after
discretion applied
Maximum
10%
10%
50%
20%
0%
10%
100%
 Profit before tax   Revenue     Free cash flow  
 Cost (% sales)   Strategic measures
2021 PSP
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Actual outcome
Maximum
50%
30%
20%
0%
100%
 Underlying EPS growth   Relative TSR 
 Service related sales
Aligning Pay with Performance
Discretion applied to overall outcome so final outturn was 
0%. See pages 140 and 141 for further detail.
Key Performance 
Indicator
Result
Outturn 
before 
discretion
Outturn 
post 
discretion
2023/24 Annual Bonus
Underlying Group 
PBT
43.1m
 nil
nil
Group revenue
£1,696.5m
3.4%
nil
Free cash flow
£29.1m
7.8%
nil
Cost as a % of sales
(44.6%)
10%
nil
Group NPS
66.5
3.5%
nil
Group colleague 
turnover
42.8%
nil
nil
Group colleague 
engagement
79%
nil
nil
Market share
Above target
3.5%
nil
2021 PSP
Relative TSR
lower quartile
nil
nil
Underlying basic 
EPS
13p
nil
nil
Group services-
related revenue
£578m
nil
nil
Single Total Figure of Remuneration for Executive Directors for the Year Ended 29 March 2024
Fixed pay comprises base salary, benefits and pension. Variable pay comprises of the annual bonus and PSP award.  
Further information on the single figure of remuneration can be found on page 140.
 halfords.annualreport2024.com
135
GOVERNANCE

Aligning Our Performance Measures to Our Strategy
Over the past few years, our strategy has remained unchanged with motoring and cycling products and services remaining at the core of our 
proposition. However, as we continue to evolve into a consumer and B2B services-focussed business, we placed greater emphasis on motoring, 
generating higher and more sustainable financial returns.
As such, we have sought to ensure that the performance measures for our incentive awards reflect our strategic ambitions. The table below 
provides a summary of our alignment. 
Alignment to Strategy
Alignment to Our Stakeholders’ Interests
Annual Bonus
Underlying Group PBT
PBT is one of our main KPIs assessing the profitability of our 
business and provides stakeholders with information on trends 
and performance before the effect of non-underlying items.
Financial, shareholder
Free Cash Flow
Strong cash flow enables investment in our plan and returns 
to shareholders, whilst aligning with broader aims to maintain a 
strong balance sheet.
Financial, shareholder
Cost as a percentage 
of revenue
Cost management remains a key focus for FY25, aligned 
with delivering our profit ambitions and shareholder value 
generation.
Financial, shareholder
Group NPS
As our business evolves to be more consumer and B2B 
services-focussed, this measure focusses on our commitment 
to customer service both in Retail and Autocentres. 
Customers, shareholder
Colleague engagement
We are committed to an ambitious people agenda and strategy. 
For FY25, measures within the annual bonus will focus on 
colleague engagement. We believe this is a key metric to ensure 
employee motivation, aligns with our organisational goals and 
keeps a focus on retention of key employees in the business.
ESG, financial, customers, shareholder
Performance Share Plan
Relative TSR
Aligns management with the wider shareholder experience and 
reinforces our ongoing focus in shareholder value creation.
Financial, shareholder
EPS
EPS is a measure of our investment thesis and indicates 
whether we are achieving our aim to manage revenues, margins 
and invest in long-term growth.
Financial, shareholder
Group 
services-related sales
An indicator of our progress towards the ambition to become a 
consumer and B2B services-focussed business with over half 
of our business in services.
Financial, customer, shareholder
136
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

Directors’ Remuneration Policy Summary Report
Our Directors’ Remuneration Policy (the “Policy”) was approved by shareholders at the 2023 AGM. The full Policy is available on the Company’s 
Website but as context for the rest of this report, the main elements of the Policy, as well as how the Policy was implemented during the year and 
how it will be implemented in FY25, are summarised below:
Elements
Objective
Key features
Implementation in FY24
Implementation in FY25
Base salary
To attract and retain 
management of a 
high calibre.
Normally reviewed annually 
with increases effective from 
1 October. Salary increases 
generally in line with the wider 
employee workforce.
Graham Stapleton: 
£616,700
Jo Hartley: £406,850
Increased by 3%, below 
the wider workforce 
with effect from 
1 October 2023.
Salaries will next be reviewed with 
effect from 1 October 2024 and 
it is expected that any increase 
will not exceed the increase 
received for the wider workforce.
Benefits
Provide market 
competitive benefits 
consistent with 
the role.
Set at an appropriate level 
taking into account the 
individual’s circumstances, 
market practice and other 
employees in the Group.
Executive Directors 
received benefits in 
relation to a car plus 
fuel or a cash allowance, 
private health insurance 
and life assurance.
No changes proposed.
Pension
To provide individuals 
with retirement 
arrangements.
Pension is aligned with the 
maximum employer pension 
contribution available to the 
majority of the UK workforce 
(currently 3% of base salary).
On 1 April 2023, Graham 
Stapleton’s pension 
allowance was reduced 
from 15% to 3% to be in 
line with the rate available 
for the wider workforce. 
Jo Hartley received a 
pension opportunity 
of 3% of salary upon 
appointment.
No changes proposed.
Annual Bonus
Incentivise the 
achievement of 
annual financial 
targets and key 
strategic, operational 
and ESG objectives.
Maximum opportunity of 
150% of salary with one-year 
performance period. 
One-third deferred into 
shares for three years. 
The Committee may, in its 
discretion, adjust payments, 
if it considers that the 
outcome does not reflect 
underlying financial or non-
financial performance.
Malus and clawback 
provisions apply.
Based on 80% financial 
measures and 20% 
delivery of strategic 
measures (full details on 
page 140).
The Committee 
considered the overall 
outcome in the context 
of wider business 
performance in the year 
and determined that 
downwards discretion 
should be applied, and 
no bonus should be paid.
Graham Stapleton: 150% of 
salary.
Jo Hartley: 150% of salary.
For FY25, measures will be 90% 
financial measures and 10% 
strategic measures:
•	 Underlying Group Profit Before 
Tax 60%, 
•	 Free Cash Flow 20%, 
•	 Cost as a percentage of 
sales 10% 
Strategic Metrics 10% (customer 
NPS 5% and colleague 
engagement 5%)
 halfords.annualreport2024.com
137
GOVERNANCE

Elements
Objective
Key features
Implementation in FY24
Implementation in FY25
PSP
Align Executive 
Directors’ interests 
with those of our 
shareholders by 
incentivising them to 
deliver the Company 
strategy and to 
create a sustainable 
business and 
maximise returns to 
shareholders.
Maximum opportunity of 
200% of salary. 
Three-year performance 
period. 
Two-year holding period after 
vesting. 
The Committee may, in its 
discretion, adjust payments, if 
it considers that the outcome 
does not reflect underlying 
financial or non-financial 
performance.
Malus and clawback 
provisions apply.
Graham Stapleton and 
Jo Hartley were granted 
awards of 200% of salary 
in the year.
Awards granted in 
December 2023 were 
based on: 
•	 EPS growth 40%; 
•	 Group service-related 
revenue 20%; and 
•	 Relative TSR vs the 
FTSE All Share General 
Retailers Index 40%. 
Targets are disclosed on 
page 141.
Graham Stapleton and Jo Hartley 
will be granted awards of up to 
200% of salary.
Consideration will be given to 
share price performance and 
stakeholder experience when 
determining the award prior to 
the date of grant. 
FY25 awards will be subject 
to the following performance 
conditions: 
•	 EPS growth 40% 
•	 Group service-related 
revenue 20% 
•	 Relative TSR vs the FTSE 
All Share General Retailers 
Index 40% 
Shareholding 
guidelines 
Align individuals with 
shareholders.
Executive Directors are 
expected to build and retain 
a shareholding with a value 
equal to at least 200% of 
their annual base salary.
Expectation that 75% of any 
post-tax shares that vest 
from incentive plans are 
retained until the guideline 
is met.
Executive Directors will 
normally be expected 
to maintain a minimum 
shareholding of 200% of 
salary (or actual shareholding 
if lower) for two years 
following stepping down as 
an Executive Director.
Executive Directors 
were subject to a 200% 
of salary shareholding 
guideline.
No change.
138
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

Structure and Content of the 
Remuneration Report
This Remuneration Report has been prepared 
in accordance with the provisions of the 
Companies Act 2006 and Schedule 8 of the 
Large and Medium-sized Companies and 
Group (Accounts and Reports) (Amendment) 
Regulations 2013 (the “Regulations”). 
This Remuneration Report meets the 
requirements of the UK Listing Rules and the 
Disclosure Guidance and Transparency Rules. 
The information set out below represents 
auditable disclosures referred to in the 
Independent Auditor’s Report on pages 158 
to 167, as specified by the UK Listing 
Authority and the Regulations.
Committee Composition
During the year, the Committee consisted of:
•	 Jill Caseberry (Chair)
•	 Tom Singer
•	 Tanvi Gokhale (appointed 20 June 2023)
•	 Helen Jones (retired 6 September 2023)
Six scheduled Committee meetings were 
held during the year and were attended by all 
relevant members at the time of the meeting. 
After each Committee meeting, the 
Remuneration Committee Chair reported to 
the Board on the key issues that had been 
discussed. 
A number of informal discussions were 
also held with the Committee members 
throughout the year when the need arose.
Activities During the Year
During the year, the Policy operated as 
intended. The Committee undertook the 
following activities: 
•	 Reviewed and approved the Directors’ 
Remuneration Report published in the 
FY23 Annual Report and Accounts.
•	 Finalised the Remuneration Policy for 
shareholder approval at the 2023 AGM.
•	 Discussed and approved incentive 
outcomes for FY23.
•	 Reviewed and approved organisational 
design changes.
•	 Approved grants under the Company’s 
share schemes.
•	 Considered the approach to implementing 
the Remuneration Policy for FY24, 
including setting Executive Director 
and Chair salaries/fees from 1 October 
2023. Non-Executive Director fees are 
determined by the Chair and the Executive 
Directors.
•	 Reviewed considering and setting the 
approach to performance measures for 
the FY24 annual bonus and performance 
share plans.
•	 Reviewed the mechanics and assets of 
the Employee Benefit Trust and hedging 
arrangements.
•	 Discussed and approved remuneration 
arrangements for the Executive 
management team below the Board.
•	 Reviewed the Committee’s Terms of 
Reference.
•	 Reviewed and approved new share 
plan rules for the UK Sharesave, the 
International Sharesave and the Company 
Share Option Scheme.
•	 Discussed and approved a change to 
the Sharesave grant timetable to enable 
participants to take advantage of the new 
HMRC bonus rates.
•	 Reviewed remuneration arrangements for 
the wider workforce and took these into 
account when considering Executive pay.
•	 Received a market update on the Executive 
pay landscape. 
•	 Received an update on the gender pay 
report.
•	 Reviewed and approved the appointment 
of remuneration advisors and set the 
appropriate fee.
Advisors and Other Attendees
During the year, the Committee has been 
supported by the Chief Property and 
People Officer and the Reward Director 
together with the Company Secretary 
(who acts as secretary to the Committee). 
The Chief Executive Officer and Chief 
Financial Officer also attend Committee 
meetings on occasion, at the request of the 
Committee; they are not present when their 
own remuneration is discussed. In carrying 
out its responsibilities, the Committee is 
authorised to obtain the advice of external 
independent remuneration consultants and 
is solely responsible for their appointment, 
retention and termination. During the year, 
the Committee has taken advice from 
Deloitte LLP (“Deloitte”), which advised 
on remuneration reporting, share option 
evaluations and other remuneration matters. 
Deloitte also provided unrelated advice on 
debt advisory work, tax services, financial 
reporting and legal support during the year. 
Total fees paid to Deloitte in respect of 
remuneration advice were £51,125 charged 
on a time and materials basis.
Deloitte is a founding member of the 
Remuneration Consultants Group and 
adheres to the Remuneration Consultants 
Group Code of Conduct when providing 
services. The Committee considers Deloitte’s 
advice independent and impartial, and is 
also satisfied that the Deloitte engagement 
team that advises the Remuneration 
Committee does not have connections 
with the Company or its Directors that 
might impair their independence. The 
Committee considered the potential for 
conflicts of interest and judged that there 
were appropriate safeguards against such 
conflicts.
Shareholder Dialogue
The voting outcome from the 2023 AGM 
held on 6 September 2023 showed 
strong support for the revised Directors’ 
Remuneration Policy (the “Policy”). 
Furthermore, the voting outcome from the 
2023 AGM showed strong support for our 
FY23 Directors’ Remuneration Report. The 
following table sets out the votes cast at the 
2023 AGM in respect of the Policy and the 
FY23 Directors’ Remuneration Report.
% of 
votes 
For
% of 
votes 
Against
FY23 Directors’ 
Remuneration Report*
99.22%
0.78%
FY23 Remuneration 
Policy** 
99.23%
0.77%
*	
49,856 votes (0.03% of votes) were withheld in relation 
to this resolution
**	 40,189 votes (0.02% of votes) were withheld in relation 
to this resolution
We continue to be mindful of the views of our 
shareholders and other stakeholders and 
encourage discussion with shareholders on 
any issue related to Executive remuneration. 
In the event of a substantial vote against 
a resolution in relation to Directors’ 
remuneration, we would seek to understand 
the reasons for any such vote to determine 
appropriate actions and detail any such 
actions in response to it in the Directors’ 
Remuneration Report.
 halfords.annualreport2024.com
139
GOVERNANCE

Annual Report on Remuneration
How the Remuneration Policy was Implemented in FY24 – Executive Directors
Single Remuneration Figure (Audited)
2023/24
Base 
Salary 
(£)
Benefits 
(£)
Pension 
(£)
Other 
(£)
Total Fixed 
(£)
Bonus 
(£)
PSP 
(£)
Total 
Variable 
(£)
Total 
“Single 
Figure” 
(£)
Graham Stapleton
607,719
24,758
17,962
–
650,440
–
–
–
650,440
Jo Hartley
400,940
12,225
11,850
–
425,015
–
–
–
425,015
2022/23
Graham Stapleton
587,224
24,821
88,084
–
700,129
–
534,4621
534,462
1,234,591
Jo Hartley2
376,190
11,602
11,286
112,017
511,095
–
–
–
511,095
1	
For 2022/23, the 2020 PSP value had been restated to reflect the share price at the date of vesting on 3 July 2023 of £2.156 compared to the average three month share price to 
31 March 2023 of £1.97 used in the FY23 Remuneration Report. The value disclosed in FY23 was £489,255. No discretion was applied in relation to share price changes
2	
Jo Hartley received a payment of £112,017 upon joining to replace a cash bonus she was required to repay on cessation of employment from her previous employer
Benefits
Benefits include payments made in relation to a car cash allowance and fuel and private health insurance. For Graham Stapleton, the car 
allowance plus fuel came to £21,601 and for Jo Hartley £11,200. 
Pension
Pension payments represent contributions made either to defined contribution pension schemes or as a cash allowance. Graham Stapleton 
received an allowance of 15% of base salary until 1 April 2023 when Graham’s allowance reduced to 3% of base salary to ensure alignment with 
the maximum employer pension contribution available to the majority of the workforce. Jo Hartley received an allowance of 3% of base salary in 
line with the majority of the workforce. 
FY24 Annual Bonus
The annual bonuses for FY24 for the Executive Directors were as follows:
FY24 Outturn
Financial measures (80% of award)
Weighting
Threshold
(15%) Target (50%)
Maximum 
(100%)
FY24 
Achievement
before 
discretion
post 
discretion
Underlying PBT (£m)
50%
£50.0m
£53.0m
£56.0m
£43.1m
0%
0%
Group Revenue (£m)
10%
£1,670m
£1,721.6m
£1,773.2m
£1,698.4m
3.4%
0%
Free Cash Flow (£m)
10%
£24.4m
£27.4m
£30.4m
£29.1m
7.8%
0%
Cost (% of sales)
10%
(47.8%)
(47.3%)
(46.8%)
(44.6%)
10%
0%
FY24 Outturn
Strategic measures (20% of award)
Weighting
Target
Stretch 
FY24 
Achievement
before 
discretion
post 
discretion
Group Colleague Engagement
5%
81-83%
84%+
79%
0%
0%
Group NPS
(FY24 score)
5%
66.3
66.8
66.5
3.5%
0%
Market Share 
5%
Motoring, Cycling, MOT and Tyres
Above target
3.5%
0%
Labour Turnover (%)
5%
42.5%
42%
42.8%
0%
0%
Total
140
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

While we have demonstrated good progress in some key strategic areas, in making this decision, the Committee and the Executive Directors 
took into account a number of factors including overall stakeholder experience, performance against financial metrics and payouts for 
colleagues. Although we were pleased to make bonus payments to our Autocentres and Retail colleagues, the Committee also took into 
account that there were a number of colleagues who received no bonus due to a PBT performance being below threshold. Therefore, the annual 
bonus for FY24 is 0%.
Performance Outcomes for 2021 PSP Awards
Metric
Weighting
Threshold 
targets (25% 
vesting)
Maximum 
targets (100% 
vesting)
Performance
% total award 
vesting
Group services-related sales  
(total of sales for FY22 to FY24)
20%
£586.2m
£617.0m
£578m
0%
Underlying EPS growth – CAGR
50%
29.5p
38.2p
13p
0%
Relative TSR
30%
Market median
Upper quartile
below median
0%
Total
0%
As none of the performance conditions were met, the award has lapsed in full.
Share Awards Granted During the Year (Audited) 
Performance Share Plan
During the period, the following awards were granted to the Executive Directors under the Performance Share Plan (“PSP”) as follows:
Date of award
Type of award
Number of 
shares1
Maximum 
face value of 
award2
Threshold 
vesting (% of 
award)
Performance period
Graham Stapleton
12 Dec 2023
Nil cost option 
(0p exercise price)
645,759
£1,233,400
25%
1 April 2023 to 3 April 2026 
Jo Hartley
12 Dec 2023
Nil cost option 
(0p exercise price)
426,020
£813,698
25%
1 April 2023 to 3 April 2026 
1	
Awards based on 200% of salary
2	
Based on the average mid-market price on three preceding days of the awards of £1.91 on 12 December 2023
Performance Conditions
The performance conditions and targets for PSP awards granted during FY24 are as follows:
Underlying EPS growth – CAGR 
(40% of the award)
Relative TSR 
(40% of the award)
Group services-related sales 
(total of sales for FY23 to FY25) 
(20% of the award)
Award (200%)
100% vesting
35.5 pence or higher
Upper quartile
Above £946.0m
Straight-line vesting 
Between 26.6 pence 
and 35.5 pence
Between market median 
and upper quartile
Between £851.4m 
and £946.0m
25% vesting
26.6 pence
Market median
£851.4m
0% vesting
Below 26.6 pence
Below market median
Below £851.4m
The award shares that vest will become exercisable in 2026. The shares that vest will be subject to a two-year holding period. 
Deferred Bonus Plan
During the period, no awards were granted under the Deferred Bonus Plan (“DBP”).
 halfords.annualreport2024.com
141
GOVERNANCE

Outstanding Share Awards (Audited)
Performance Share Plan (“PSP”)
The following summarises outstanding awards under the PSP:
Award date
Grant 
price7 
(£) 
Awards 
held 
1 Apr 
2023 
Awarded 
during 
the 
period
Dividend 
reinvestment8
Forfeited 
during 
the 
period
Lapsed 
during 
the 
period
Exercised 
during 
the 
period
Awards 
held 29 
Mar 2024
Performance 
period 
years to 
Holding 
period to
Graham 
Stapleton
5 Oct 20181
3.197 350,071
–
12,334
–
–
362,405
–
2 Apr 2021
2 Apr 2023
20 Sept 20192
1.696 633,709
–
33,440
–
–
–
667,149
1 Apr 2022
1 Apr 2024
16 Oct 20203
2.425 495,791
–
13,081
247,896
–
–
260,976
31 Mar 2023
31 Mar 2025
7 Oct 20214
2.921 412,380
–
21,760
–
–
–
434,140
29 Mar 2024
29 Mar 2026
21 Oct 20225
1.671 637,419
–
33,636
–
–
–
671,055
28 Mar 2025
28 Mar 2027
12 Dec 20236
1.91
–
645,759
10,938
–
–
–
656,697
3 Apr 2026
3 Apr 2028
Jo 
Hartley
21 Oct 20225
1.671 360,444
–
19,019
–
–
–
379,463
28 Mar 2025
28 Mar 2027
12 Dec 20236
1.91
–
426,020
7,216
–
–
–
433,236
3 Apr 2026
3 Apr 2028
1	
The 2018 award granted on 5 October 2018 vested at 84.9% in April 2021, a two-year deferral period was attached to the award. The deferral was applied as a gross holding 
retention period, which meant the award could not be exercised until the second anniversary of vesting (April 2023). The award continued to attract dividend reinvestment shares 
during the deferral period. Graham exercised his award on 12 December 2023
2	
The 2019 award granted on 20 September 2019 vested at 100% in April 2022, a two-year deferral period is attached to the award. The deferral is applied as a gross holding 
retention period, which means the award cannot be exercised until the second anniversary of vesting (April 2024). The award continues to attract dividend reinvestment shares 
during the deferral period
3	
The 2020 award granted on 16 October 2020 vested at 50% in April 2023, a two-year deferral period is attached to the award. The deferral is applied as a gross holding retention 
period, which means the award cannot be exercised until the second anniversary of vesting (April 2025). The award continues to attract dividend reinvestment shares during the 
deferral period
4	
The 2021 award granted on 7 October 2021 was subject to 50% underlying EPS growth (25% vesting at 5% CAGR. 100% vesting at 12% CAGR), 30% to Relative TSR (25% vesting 
achieving below market median. 100% vesting achieving upper quartile), and 20% to Group services related sales (25% vesting for £586.2m, 100% vesting for £617.0m). On 6 June 
2024, the Committee confirmed the award will lapse in full
5	
The 2022 award granted on 21 October 2022 is subject to 50% underlying EPS growth (25% vesting at 24.7p in FY25. 100% vesting at 34.5p in FY25), 30% to Relative TSR (25% 
vesting achieving below market median. 100% vesting achieving upper quartile), and 20% to Group services related sales (25% vesting for £840.6m, 100% vesting for £934.0m) 
6	
The 2023 award granted on 12 December 2023 is subject to 40% underlying EPS growth (25% vesting at 26.6p in FY26. 100% vesting at 35.5p in FY26), 40% to Relative TSR (25% 
vesting achieving below market median. 100% vesting achieving upper quartile), and 20% to Group services related sales (25% vesting for £851.4m, 100% vesting for £946.0m) 
7	
The grant price is calculated by taking the mid-market average across the three preceding days prior to the grant date
8	
The interim and final dividends have been reinvested in shares at prices between £1.771 and £1.9867
Deferred Bonus Plan (“DPB”)
Award date
Grant 
price1 
(£)
Awards 
held 1 Apr 
2023
Awarded 
during the 
period
Dividend 
reinvestment2 
Forfeited 
during the 
period
Lapsed 
during the 
period
Exercised 
during the 
period
Awards 
held 29 
Mar 2024 
Vesting
Graham 
Stapleton
30 June 2021
4.312
65,056
–
3,432
–
–
–
68,488 30 June 2024
30 June 2022
1.429
167,306
–
8,827
–
–
–
176,133 30 June 2025
1	
The grant price is calculated by using the mid-market quotation on the date of grant
2	
The interim and final dividends have been reinvested in shares at prices between £1.771 and £1.9867 
142
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

CEO Pay Compared to Performance
The following graph shows the TSR performance of the Company since April 2014, against the FTSE All Share General Retailers Index (which 
was chosen because it represents a broad equity market index of which the Company is a constituent).
0
20
40
60
80
100
120
FTSE All-Share General Retailers
Halfords Group
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Source: Thomson Reuters Datastream
The following table summarises the CEO single figure for the past ten years and outlines the proportion of annual bonus paid as a percentage of 
the maximum opportunity and the proportion of PSP awards vesting as a percentage of the maximum opportunity. The annual bonus is shown 
based on the year to which performance related and the PSP is shown for the last year of the performance period.
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
CEO Single Figure (£000)
Graham Stapleton1
–
–
–
1,818
670
678
2,699
2,752
1,189
650
Jonny Mason2
–
–
–
236
–
–
–
–
–
–
Jill McDonald3
–
851
741
295
–
–
–
–
–
–
Matt Davies4
645
54
–
–
–
–
–
–
–
–
Annual Bonus (% of maximum)
Graham Stapleton1
–
–
–
70%
–
–
92.5%
79.37%
–
–
Jonny Mason2
–
–
–
42.3%
–
–
–
–
–
–
Jill McDonald3
–
23.5%
–
–
–
–
–
–
–
–
Matt Davies4
–
–
–
–
–
–
–
–
–
–
PSP Vesting (% of maximum)
Graham Stapleton1
–
–
–
–
–
–
84.9%
100%
50%
–
Jonny Mason2
–
–
–
–
–
–
–
–
–
–
Jill McDonald3
–
–
–
–
–
–
–
–
–
–
Matt Davies4
–
–
–
–
–
–
–
–
–
–
1	
Graham Stapleton was appointed in January 2018. An incorrect benefits figure was reported for FY19 in error; this was corrected and reflected in the total for FY19. The single 
figure for FY21 has been restated to reflect the share price of the PSP at the date of vesting on 9 June 2021 of £3.88
2	
Jonny Mason was appointed as interim Chief Executive Officer for the period from September 2017 to the date of Graham Stapleton joining in January 2018, and the figures 
represent pro-rated amounts of his bonus and overall remuneration for FY18
3	
Jill McDonald was appointed in May 2015 and resigned as CEO in September 2017
4	
Matt Davies was appointed in October 2012 and resigned as CEO in April 2015
 halfords.annualreport2024.com
143
GOVERNANCE

Shareholding Guidelines
The Committee believes that it is important that Executive Directors’ interests are aligned with those of the shareholders. Executive Directors are 
encouraged to acquire and retain shares with a value equal to 200% of their annual base salary. Executive Directors are expected to retain 75% 
of any post-tax shares that vest under any share incentive plans until this shareholding guideline is met. 
Graham Stapleton
Jo Hartley
Shareholding guideline
200%
200%
Shareholding as at 29 March 2024
852,5091
nil
Current value (based on share price on 29 March 2024)
£1,368,277
nil
Current % of salary
221.87%
nil
1	
The shareholding figure includes the vested shares from the 2019 and 2020 Performance Share Plan awards (on a net of tax basis), which are currently being held in a two-year 
deferral period in the Employee Benefit Trust (“EBT”). The figure also includes the shares held in the EBT in relation to the Deferred Bonus Plan grants made in 2021 and 2022 (on a 
net of tax basis) 
These figures include those of their spouse or civil partner and infant children, or stepchildren, as required by Section 822 of the Companies 
Act 2006.
On 12 July 2024, Graham Stapleton exercised his 2019 Performance Share Plan award and his 2021 Deferred Bonus Plan award. Consequently, 
as at 17 July 2024, Graham held 851,469 shares. There has been no change in the beneficial interest of Jo Hartley between 29 March and  
17 July 2024
Under the post-employment shareholding guideline, Executive Directors are expected to retain their shareholding guideline (200% of salary) for 
a period of two years post stepping down as an Executive Director. This post-employment shareholding guideline applies to any performance 
incentive shares that vested from 1 April 2020.
Executive Directors’ Appointments
Director
Date of Service Agreement
Notice Period
Graham Stapleton
8 September 2017
6 months
Jo Hartley
1 October 2021
6 months
Outside Appointments
Halfords recognises that its Executive Directors may be invited to become Non-Executive Directors of other companies. Such Non-Executive 
duties can broaden experience and knowledge, which can benefit Halfords. Subject to approval by the Board, Executive Directors are allowed 
to accept Non-Executive Director appointments and retain the fees received, provided that these appointments are not likely to lead to conflicts 
of interest. 
Loss of Office Payments (Audited)
No loss of office payment was made to a Director during the period. 
Payments to Former Directors (Audited)
No payments were made to former Directors during the period.
144
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

How the Remuneration Policy was Implemented in FY24 – Non-Executive Directors
Non-Executive Director single figure comparison (Audited)
During the year, fees for the Non-Executive Directors and the Chair were reviewed to ensure they remained competitive and aligned with those 
offered at similar sized companies. As a result of this review, it was determined that the base for the NEDs and Chair would be increased by 3%, 
effective from 1 October 2023. No increase was applied to the Committee Chair fees. 
Director
Role
Board 
fees 
(£)
Senior 
Independent 
Director fee 
(£) 
Committee Chair/ 
Employee Voice 
Director fees 
(£) 
Taxable 
benefits1 
(£) 
Total 
“Single 
Figure”2 2024 
(£) 
Total 
“Single Figure” 
2023 
(£) 
Keith Williams3 Company Chair
206,760
–
–
–
206,760
199,787
Jill Caseberry4
Senior Independent Director, 
Remuneration Committee Chair
55,883
5,714
10,000
449
72,047
64,437
Tom Singer3
Audit Committee Chair
55,883
–
10,000
–
65,883
64,345
Tanvi Gokhale5 ESG Committee Chair and 
Employee Voice Director
43,787
–
5,000
–
48,787
–
Helen Jones6
Senior Independent Director, 
ESG Committee Chair and 
Employee Voice Director
26,929
5,000
5,000
426
37,355
74,212
1	
Includes hotel and travel costs incurred when attending Halfords’ meetings and Board visits
2	
The Chair and Non-Executive Directors are not entitled to participate in any of the Group’s incentive plans or pension plans so all pay is fixed
3	
Keith Williams, Tom Singer and Tanvi Gokhale did not claim any taxable benefits during the year 
4	
Due to a payroll error, a portion of fees for Jill Caseberry relating to her appointment as Senior Independent Director from 6 September 2023 were paid in FY25. This amounted 
to £5,714
5	
Tanvi Gokhale joined the Board on 20 June 2023 and became ESG Committee Chair and Employee Voice Director on 6 September 2023
6	
Helen Jones retired from the Board on 6 September 2023
Non-Executive Director Shareholding
Director
2024
2023
Keith Williams
180,000
150,000
Jill Caseberry
20,283
3,125
Tom Singer
30,000
30,000
Tanvi Gokhale
–
N/A
These figures include those of their spouses, civil partners and infant children, or stepchildren, as required by Section 822 of the Companies Act 
2006. There was no change in these beneficial interests between 29 March 2024 and 17 July 2024.
Non-Executive Directors do not have a shareholding guideline, but they are encouraged to buy shares in the Company.
Non-Executive Directors’ Appointments
None of the Non-Executive Directors have an employment contract with the Company. However, each had entered into a letter of appointment 
with the Company confirming their appointment for a period of three years, unless terminated by either party giving the other not less than three 
months’ notice or by the Company on payment of fees in lieu of notice.
Director
Appointed
Date of current 
appointment
Expiry date
Unexpired term at the 
date of this report
Jill Caseberry
01-Mar-19
01-Mar-22
28-Feb-25
9 months
Tom Singer
16-Sep-20
16-Sep-23
15-Sep-26
27 months
Keith Williams
24-Jul-18
24-Jul-21
23-Jul-24
1 months
Tanvi Gokhale
20-Jun-23
20-Jun-23
19-Jun-26
24 months
Their appointments are subject to the provisions of the Companies Act 2006 and the Company’s Articles of Association, and, in particular, the 
need for re-election. Continuation of an individual Non-Executive Director’s appointment is also contingent on that Non-Executive Director’s 
satisfactory performance, which is evaluated annually. The Non-Executive Directors’ letters of appointment are available for inspection by 
shareholders at the Company’s registered office.
 halfords.annualreport2024.com
145
GOVERNANCE

How the Remuneration Policy will be Implemented for FY25 – Executive Directors
Salary
The salary for the Executive Directors, Graham Stapleton and Jo Hartley, was increased by 3% with effect from 1 October 2023, which was 
below the increase received across the wider workforce. 
The salaries for the current Executive Directors are as follows:
CEO – Graham Stapleton
£616,700
CFO – Jo Hartley
£406,850
Salaries will next be reviewed with effect from 1 October 2024.
Pension
Graham Stapleton and Jo Hartley receive pension allowances of 3%, which is in line with the rate available for the wider workforce. 
Annual Bonus
The normal maximum annual bonus for Executive Directors is 150% of base salary with two-thirds paid in cash and one-third paid in Halfords’ 
shares deferred for three years. 
For FY25, following a review of the performance measures, the Committee agreed to adjust the measures on the annual bonus plan to reflect 
the emphasis on profit growth, cost reduction and cash flow improvements for FY25.
Performance Measures for FY25 Annual Bonus
Financial Measures
90%
•	 Underlying Group Profit Before Tax – 60% 
•	 Free Cash Flow – 20% 
•	 Cost as a percentage of sales – 10%
Strategic Measures
10%
•	 NPS – 5% 
•	 Colleague Engagement – 5% 
Targets have not been disclosed at the current time as they are considered to be commercially sensitive. The Committee intends to disclose 
targets in next year’s Directors’ Remuneration Report.
Performance Share Plan (“PSP”)
The normal PSP award for Executive Directors is 200% of base salary. 
The Committee is mindful of shareholder guidance that award levels should be adjusted where the share price has fallen significantly compared 
to prior years. Based on the current share price, the Committee is of the view that no adjustment is required; however, the Committee will take 
this into account when determining award levels in September.
Our normal practice is to grant awards in the autumn. 
FY25 PSP awards are due to be granted later in the year. These awards will continue to vest based on relative TSR vs. FTSE All-Share General 
Retailers Index (40% weighting), on EPS performance for FY27 (40% weighting), and on Group Services-Related Revenue for FY26 (20% 
weighting). These weightings are unchanged from FY24. 25% of the TSR element will vest for median performance with 100% vesting for 
upper quartile TSR performance. Targets for the EPS and Group Services-Related Revenue measures will be determined and disclosed by the 
Committee in due course.
146
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

How the Remuneration Policy will be Implemented for FY25 – Non-Executive Directors Fees
The fees of Non-Executive Directors are reviewed regularly. Any changes to these fees will be approved by the Board as a whole following a 
recommendation from the Chief Executive Officer and the Remuneration Committee. 
The fees of the Non-Executive Directors were reviewed in October 2023, where a 3% fee increase was applied to the Chair’s fee and the base 
Non-Executive Director fee; however, no increase was applied to the Committee Chair fees. The next fee review will be in October 2024.
Current fees for Non-Executive Directors are as follows:
FY24
FY23
Chair
£209,816
£203,705
Base fee
£56,709
£55,058
Additional fees
Senior Independent Director
£10,000
£10,000
Committee Chair (Audit and Remuneration)
£10,000
£10,000
Employee Voice Director
£5,000
£5,000
Committee Chair (ESG)
£5,000
£5,000
Change in Remuneration of Directors Compared to Group Colleagues
The table below sets out the increase in total remuneration of the Directors and that of all colleagues in FY24 compared with the prior year.
FY23 to FY24
FY22 to FY23
FY21 to FY22
FY20 to FY21
Base 
salary/ 
fees % 
change
Annual 
bonus 
% 
change
Benefits 
% 
change
Base 
salary/ 
fees % 
change
Annual 
bonus % 
change
Benefits 
% 
change
Base 
salary/ 
fees % 
change
Annual 
bonus % 
change
Benefits 
% 
change
Base 
salary/ 
fees % 
change
Annual 
bonus % 
change
Benefits 
% 
change
Executive Directors
Graham 
Stapleton
3.00%
0%
–
4.00%
–13.00%
–
1.80% 100.00%
–
1.80%
–
–
Jo Hartley1
3.00%
0%
–
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Loraine 
Woodhouse2
N/A
N/A
–
N/A
–13.00%
–
1.80% 100.00%
1.80%
–
–
Non-Executive Directors
Keith Williams
3.00%
–
–
4.00%
–
–
1.80%
–
–
0.00%
–
–
Helen Jones3
N/A
–
–
4.00%
–
–
1.80%
–
–
9.50%
–
–
Jill Caseberry
3.00%
–
–
4.00%
–
–
1.80%
–
–
0.00%
–
–
Tom Singer
3.00%
–
–
4.00%
–
–
1.80%
–
–
N/A
N/A
N/A
Tanvi Gokhale4
N/A
–
–
N/A
–
–
N/A
–
–
N/A
N/A
N/A
Average 
pay of all 
colleagues in 
the Group
5.7%
–2.7%
–
5.91%
8.58%
–
2.80%
76.30%
–
4.02%
45.42%
–
1	
Jo Hartley was appointed as Chief Financial Officer on 16 June 2022
2	
Loraine Woodhouse retired from the Board on 1 July 2022
3	
Helen Jones retired from the Board on 6 September 2023
4	
Tanvi Gokhale was appointed as a Non-Executive Director on 20 June 2023
 halfords.annualreport2024.com
147
GOVERNANCE

CEO Pay Ratio
Halfords being a UK-listed Company with more than 250 employees means that the Company is required to disclose annually the ratio of its 
CEO’s pay to the median, lower quartile and upper quartile pay of their UK employees. Details of this can be found in the table below.
Year
Method
25th 
percentile pay 
ratio
Median pay 
ratio
75th 
percentile pay 
ratio
2023/24
Option B
29:1
23:1
22:1
2022/23
Option B
61:1
56:1
34:1
2021/22
Option B
167:1
147:1
90:1
2020/21
Option B
143:1
126:1
99:1
Of the three options set out in the legislation for calculating the CEO pay ratio, we have chosen Option B using Gender Pay Gap data. This 
option was chosen as it represents the most efficient method to determine the respective pay ratios. The colleagues at the three quartiles 
were identified and their respective single-figure values calculated as of 5 April 2023. To ensure the identified colleagues were representative, 
the total remuneration for a group of individuals above and below the identified colleague at each quartile was also reviewed. The Board has 
confirmed that the ratio is consistent with the Company’s wider policies on employee pay, reward and progression. In order to determine the 
full-time equivalent salary component for the representative colleagues, the hourly rate was multiplied by full-time hours to calculate the full-time 
equivalent salary. No component of total remuneration was omitted. The base salary and total remuneration for each representative colleague 
are outlined below, adjusted to reflect full-time equivalent hours. There is a decrease in the CEO pay ratio in 2024 compared to 2023. As has 
been the case in previous years, the remuneration arrangements for the Executive Directors are more closely linked to performance, and this is 
reflected in the year-on-year change, given both the annual bonus and the PSP did not pay out in the year.
Component
P25
P50
P75
Base Salary
£21,099
£23,643
£26,345
Total Remuneration
£25,212
£28,806
£29,075
148
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
REMUNERATION 
COMMITTEE REPORT

Workforce Engagement in Remuneration
Halfords has long-established practices of engaging with colleagues across all areas of the business, including holding regular listening groups, 
appointing and meeting with local colleague engagement People Champions, and conducting a colleague engagement survey. Although during 
FY24 the Committee did not consult directly with colleagues regarding Executive Directors’ remuneration, the scope of this engagement will be 
expanded to include Directors’ remuneration where appropriate for FY25 and the future.
During FY24, the Committee did not consult directly with colleagues regarding Executive Directors’ remuneration due to the mutual agreement 
not to pay a bonus for FY24 and a below-average pay increase award. In addition to future engagement with employees, the Committee 
will continue to consider the broader approach to pay and incentive outcomes for the wider employee base when setting pay policy and 
determining incentive outcomes for the Executive Directors.
Gender Pay Gap Report
Details of the Group’s Gender Pay Gap Report for 5 April 2023 are available at www.Halfordscompany.com/environmental-social-and-
governance/our-colleagues/gender-pay-gap/.
Relative Importance of Pay 
The Committee is also aware of shareholders’ views on remuneration and its relationship to other cash disbursements. The following table 
shows the relationship between the Company’s financial performance, payments made to shareholders and expenditure on payroll.
2024
2023
EBITDA (underlying from continuing operations) (FY23: updated comparative)
£183.9m
£182.5m
PBT (underlying from continuing operations) (FY23: updated comparative)
£43.1m
£46.8m
Payments to employees:
Wages and salaries
£351.6m
£321.0m
Executive Directors1
£1.1m
£2.0m
Dividend paid to shareholders and share buybacks2
£21.7m 
£19.5m
1	
Based on the single figure calculation, not all of which is included within wages and salary costs
2	
There were no share buybacks during FY23 nor FY24
 halfords.annualreport2024.com
149
GOVERNANCE

The Directors present their report and the audited financial statements of Halfords Group plc (the “Company”) together with its subsidiary 
undertakings (the “Group”) for the period ended 29 March 2024.
Halfords Group plc
Registered Number	 	
04457314
Registered Office Address	
Icknield Street Drive, Washford West, Redditch, Worcestershire B98 0DE
Country of Incorporation	
England and Wales
Type	
	
	
Public Limited Company
Additional Disclosure
The Company, in accordance with Section 414C of the Companies Act 2006, has chosen to provide disclosures and information to the extent 
necessary to understand the Company’s development, performance and position and the impact of its activity, relating to, as a minimum: 
environmental matters, the Group’s employees, social matters, respect for human rights, and anti-corruption and anti-bribery matters.  
These matters and cross-references to the relevant sections of this Annual Report are shown in the table below:
Topic
Location
Page
Appointment and removal of Directors
Directors’ Report
152
Anti-Bribery and Corruption 
Audit Committee Report
131
Articles of Association
Directors’ Report
154
Auditor
Directors’ Report
154
Audit Committee Report
Audit Committee Report
126
Authority to issue or purchase shares
Directors’ Report
154
Board of Directors
Directors’ Report
152
Board effectiveness and leadership: role and composition of the 
Board and Committees; meeting attendance; skills and experience; 
independence; diversity; induction and development; evaluation; 
Directors and their other interests; and Board Committees
Corporate Governance Report
102
Branches
Directors’ Report
154
Charitable donations
Strategic Report: Our ESG Strategy
64
Colleague engagement
Corporate Governance Report
108
Directors Report 
153
Colleagues’ involvement; training, diversity and inclusion; and disability
Directors’ Report
153
Strategic Report: Our ESG Strategy
62
Community
Strategic Report: Our ESG Strategy
64
Compensation for loss of office
Directors’ Report
154
Creditor payment policy
Directors’ Report
154
Culture
Corporate Governance Report
106
Directors’ biographies
Board of Directors
98
Directors’ indemnities
Directors’ Report
153
Directors’ interests
Directors’ Remuneration Report
144
Directors’ Remuneration Report and Remuneration Policy Summary
Directors’ Remuneration Report
132
Directors’ Responsibilities Statement
Directors’ Responsibilities Statement
155
Diversity and Inclusion
Directors’ Report 
153
Governance at a Glance
97
Nomination Committee Report
122
Strategic Report: Our ESG Strategy
62
Energy and Carbon Emissions
Strategic Report: Our ESG Strategy
68
Financial instruments
Note 22 to the Financial Statements
202
Future developments of the business
Chief Executive Officer’s Statement
28
Financial position of the Group, its cash flows, liquidity position and 
borrowing facilities
Chief Financial Officer’s Statement
76
Gender
Strategic Report: Our ESG Strategy
63
Governance at a Glance
95
Nomination Committee Report
122
Going concern
Strategic Report: Going Concern and Viability
90
150
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
DIRECTORS’ 
REPORT

Topic
Location
Page
Governance
Corporate Governance Report
92
Important events since year-end
Directors’ Report
154
Independent Auditor
Independent Auditor’s Report
158
Internal control and risk management
Corporate Governance Report
119
Modern Slavery Statement
Directors’ Report
154
Nomination Committee Report
Nomination Committee Report
120
Political donations
Directors’ Report
154
Powers of the Directors
Directors’ Report
152
Principal activities
Directors’ Report
152
Re-election of Directors
Corporate Governance Report
114
Restrictions on transfer of securities
Directors’ Report
152
Section 172(1) Statement
Strategic Report: Section 172(1) Statement
42
Corporate Governance Report
109
Share capital
Directors’ Report
153
Note 23 to the Financial Statements
207
Significant shareholders
Directors’ Report 
153
Subsidiary and associated undertakings
Note 4 to the Financial Statements
217
Stakeholders
Corporate Governance Report
109
Statement of Corporate Governance
Corporate Governance Report
102
Strategic Report
Strategic Report
24
Viability Statement
Strategic Report: Going Concern and Viability
90
Voting rights
Directors’ Report
153
Disclosures required under Listing Rule 9.8.4R
The Company, in accordance with Listing Rule 9.8.4C, has disclosed the information required to be included in the Annual Report under Listing 
Rule 9.8.4R. This information can be found on the following pages of the Annual Report:
Topic
Report
Page
Statement of the amount of interest capitalised
Note 16 to the Financial Statements
200
Long-term incentive schemes
Directors’ Remuneration Report
135
Waiver of dividends 
Director’s Report
152
No other disclosures under Listing Rule 9.8.4 are required.
Disclosures Required under Listing Rule 9.8.6
The Company, in accordance with Listing Rule 9.8.6, has included in the Annual Report and Accounts a number of statements, which contain 
certain prescribed Corporate Governance disclosures this includes diversity-related disclosures and climate-related financial disclosures 
consistent with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations and recommended disclosures. This 
information can be found on the following page of the Annual Report:
Topic
Report
Page
Interests of each Director of the Company
Directors Report
152
Interests disclosed in accordance with DTR5
Directors Report
153
Going Concern 
Strategic Report: Going Concern and Viability
90
Shareholder Authority for purchase of own shares
Directors Report
154
Compliance with the UK Corporate Governance Code
Directors Report
152
Corporate Governance Report
102
Task Force on Climate-related Financial Disclosures (“TCFD”)
Strategic Report: TCFD
69
Board Diversity
Strategic Report: Our ESG Strategy 
62
Corporate Governance Report
97
Nomination Committee Report
122
Numerical data on Board diversity 
Corporate Governance Report
95
Nomination Committee Report
122
Approach to Data Collection
Corporate Governance Report
122
 halfords.annualreport2024.com
151
GOVERNANCE

UK Corporate Governance Code
The Company has applied the principles 
of, and complied with, the provisions of the 
2018 UK Corporate Governance Code (the 
“Code”) throughout the period, save for 
the following: the Board notes that there 
was a short breach of provision 11 of the 
Code between 31 March 2023 and 20 June 
2023. It was agreed that Helen Jones would 
remain in office until the end of the AGM on 
6 September 2023. The Board recognised 
that as it had assessed that Helen would 
no longer be regarded as independent for 
the purpose of the Code, because of her 
extended tenure, this did create a technical 
breach of the Code’s recommendation that 
the majority of the Board be independent 
Non-Executive Directors. However, the Board 
believed that this short-term situation was 
justified to ensure that the correct candidate 
was appointed to the Board in Helen’s place 
and was resolved when Tanvi Gokhale was 
appointed as a Non-Executive Director on 
20 June 2023.
The Corporate Governance Report as 
set out from page 102 forms part of the 
Directors Report.
Principal Activities
The principal activities of the Group are: 
the provision and retailing of motoring and 
cycling services and products; vehicle 
servicing, maintenance and repairs through 
garages and mobile vans; and the provision 
of software as a service. The principal activity 
of the Company is that of a holding company. 
The Company’s registrar is Link Group, 
Central Square, 29 Wellington Street, Leeds 
LS1 4DL.
Profits and Dividends
The Group’s results for the period are set 
out in the Consolidated Income Statement 
on page 168. The profit before tax from 
continuing operations was £38.8m (2023: 
updated comparative £39.0m) and the 
profit after tax amounted to £17.3m (2023: 
updated comparative £28.1m). The Board 
proposed that a final dividend of 5.0 pence 
per ordinary share be paid on 13 September 
2024 to shareholders whose names are 
on the register of members at the close 
of business on 9 August 2024. An interim 
dividend payment of 3.0 pence per ordinary 
share was paid on 19 January 2024.
Computershare Trustees (Jersey) Limited, 
trustee of the Halfords Employees’ Share 
Trust, has waived its entitlement to dividends.
Performance Monitoring 
The delivery of the Group’s strategic 
objectives is monitored by the Board through 
Key Performance Indicators (“KPIs”) and 
periodic reviews of various aspects of the 
Group’s operations. The Group considers 
that the KPIs listed on pages 45 to 47 are 
appropriate measures to assess the delivery 
of the Group’s Strategy.
Directors
The following were Directors of the Company 
during the period ended 29 March 2024 and 
at the date of this report:
•	 Keith Williams 
•	 Graham Stapleton
•	 Jo Hartley 
•	 Jill Caseberry
•	 Tom Singer
•	 Tanvi Gokhale (appointed 20 June 2023)
•	 Helen Jones (retired 6 September 2023)
In accordance with the Company’s Articles 
of Association and the UK Corporate 
Governance Code guidelines, all those 
persons holding office as a Director of the 
Company on 29 March 2024 will retire and 
offer themselves for re-election at the 2024 
Annual General Meeting (“AGM”).
The Service Agreements of the Executive 
Directors and the Letters of Appointment 
of the Non-Executive Directors are available 
for inspection at the registered office of the 
Company. A summary of these documents 
is also included in the annual Directors’ 
Remuneration Report on pages 132 to 149.
Appointment and  
Removal of a Director
A Director may be appointed by an ordinary 
resolution of shareholders in a general 
meeting following a recommendation by the 
Nomination Committee in accordance with 
its Terms of Reference, as approved by the 
Board or by a member (or members) entitled 
to vote at such a meeting. Alternatively, 
a Director may be appointed following 
retirement by rotation if the Director chooses 
to seek re-election at a general meeting. In 
addition, the Directors may appoint a Director 
to fill a vacancy or act as an additional 
Director, provided that the individual retires 
at the next Annual General Meeting and, if 
they are to continue, they offer themselves 
for election. A Director may be removed by 
the Company in circumstances set out in the 
Company’s Articles of Association or by a 
special resolution of the Company.
Powers of the Directors
Subject to the Articles, the Companies Act 
and any directions given by the Company 
by special resolution and any relevant 
statutes and regulations, the business of the 
Company will be managed by the Board who 
may exercise all the powers of the Company. 
Specific powers relating to the allotment and 
issuance of ordinary shares, and the ability of 
the Company to purchase its own securities, 
are also included within the Articles, and 
such authorities are submitted for approval 
by the shareholders at the Annual General 
Meeting each year. The authorities conferred 
on the Directors at the 2023 Annual General 
Meeting (“AGM”), held on 6 September 2023, 
will expire on the date of the 2024 AGM.
Directors’ Interests
The Directors’ interests in, and options over, 
ordinary shares in the Company are shown 
in the Directors’ Remuneration Report on 
pages 144 and 145. 
Since the end of the financial year and the 
date of this report, there have been no 
changes to such interests.
In line with the requirements of the 
Companies Act, Directors have a statutory 
duty to avoid situations in which they have, or 
may have, interests that conflict with those 
of the Company unless that conflict is first 
authorised by the Board. 
The Company has procedures in place 
for managing conflicts of interest. The 
Company’s Articles of Association contain 
provisions to allow the Directors to authorise 
potential conflicts of interest, so that if 
approved, a Director will not be in breach 
of their duty under company law. In line 
with the requirements of the Companies 
Act 2006, each Director has notified the 
Company of any situation in which they 
have, or could have, a direct or indirect 
interest that conflicts, or possibly may 
conflict, with the interests of the Company 
(a situational conflict). Directors have a 
continuing duty to update any changes to 
their conflicts of interest and the register is 
updated accordingly.
The Directors are also aware of their duties 
under Section 172 of the Companies Act 
2006 and so, in making their decisions, 
they consider the long-term impact on the 
business as well as taking into consideration 
the interests of stakeholders such as 
colleagues, suppliers, customers and the 
wider communities in which we operate. 
More information on this can be found on 
pages 42 to 44.
152
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
DIRECTORS’ 
REPORT

Directors’ Indemnities
Directors’ and Officers’ insurance has been 
established for all Directors and Officers 
to provide cover against their reasonable 
actions on behalf of the Company. 
The Directors of the Company and the 
Company’s subsidiaries also have the 
benefit of third-party indemnity provisions, 
as defined by Section 236 of the Companies 
Act 2006, pursuant to the Company’s Articles 
of Association.
Colleague Engagement
Engagement with, and feedback from, our 
colleagues across the business is vital to 
the Group. The Group has an established 
framework of colleague communications 
providing regular information on business 
performance and other important and 
relevant matters. For more information see 
Our ESG Strategy on pages 54 to 68.
Employment Policies
The Group encourages diversity and inclusion 
and, as an equal opportunities employer, is 
committed to providing equal opportunities 
for all colleagues and applicants during 
recruitment and selection, training and career 
development and promotion.
This commitment to equality of opportunity 
applies regardless of anyone’s physical 
ability, sexual orientation or gender identity, 
pregnancy and maternity, race, religious 
beliefs, age, nationality or ethnic origin. This 
is underpinned by our Group’s policies, 
which ensure full and fair consideration to 
employment applications from people from 
diverse backgrounds, including those with 
disabilities wherever suitable opportunities 
exist, having regard to their particular 
aptitudes and abilities. Should a colleague 
become disabled, efforts are made to ensure 
their continued employment with the Group, 
with appropriate training as necessary. 
Further details of our Diversity Policy are 
included in the Nomination Committee 
Report on page 121.
The Group takes a zero-tolerance approach 
to matters of discrimination, harassment 
and bullying in all aspects of its business 
operations. Appropriate policies and 
procedures are in place for reporting and 
dealing with such matters.
Colleague Training  
and Development
The Group strives to meet its business 
objectives by motivating and encouraging 
all colleagues to be responsive to the needs 
of its customers and to continually improve 
operational performance. To achieve this, 
we deliver a range of blended training and 
development programmes, across the Group. 
We regard the training and development 
of our colleagues as being particularly 
important for our business and also for the 
communities in which we operate. 
For many years we have held strong 
relationships with a number of apprenticeship 
partners that allow us to offer personal and 
professional growth. In addition, the Group 
runs targeted Leadership Development 
programmes and operational succession 
programmes to further build capability in 
skills identified to both ensure that colleagues 
are successful in their chosen roles, as well 
as to help colleagues identify and develop 
skills that will support them to be our 
future leaders. 
Whistleblowing
The Group’s Whistleblowing Policy and 
Procedure (the “Whistleblowing Policy”) 
enables colleagues to report concerns 
on matters affecting the Group or their 
employment, without fear of recrimination. 
As part of our commitment to ensuring a 
culture of honesty and integrity, in 2022, 
Halfords partnered with SeeHearSpeakUp in 
order to launch externally operated reporting 
channels, including a new web-based 
channel. Posters publicising whistleblowing 
channels are distributed to all stores, 
Autocentres, Distribution Centres and the 
Support Centre.
During the period, the Whistleblowing 
Policy was reviewed and approved by the 
Audit Committee, and the Audit Committee 
receives regular summaries of whistleblowing 
contacts and resolutions. 
Research and Development
Information relating to research and 
development carried out by the Group 
in relation to products and services 
can be found on pages 26 to 89 of the 
Strategic report.
Share Capital and  
Shareholder Voting Rights
Details of the Company’s share capital and 
of the rights attached to the Company’s 
ordinary shares are set out in Note 23 on 
page 207. All ordinary shares, including those 
acquired through Company share schemes 
and plans, rank equally with no special rights. 
All members who hold ordinary shares are 
entitled to attend, vote and speak at the 
general meetings of the Company, appoint 
proxies, receive any dividends, exercise 
voting rights and transfer shares without 
restriction. On a show of hands at a general 
meeting every member present in person, 
and every duly appointed proxy, shall have 
one vote for every share held, and on a 
poll, every member present in person or by 
proxy shall have one vote for every ordinary 
share held. The Company is not aware of any 
arrangements that may restrict the transfer 
of shares or voting rights.
Significant Shareholders 
As at 29 March 2024, the Company had been 
notified under the Disclosure Guidance and 
Transparency Rules (DTR5) of the following 
notifiable interests representing 3% or more 
of the Company’s issued share capital. The 
information provided below was correct at 
the date of notification. These holdings are 
likely to have changed since the Company 
was notified.
Fund Manager
Shares 
% at 
29 March 
2024
Fidelity International
21,540,916
9.84
Jupiter Asset 
Management
16,167,336
7.38
Gresham House Asset 
Management
13,788,951
6.30
Janus Henderson 
Investors
11,723,781
5.36
Dimensional Fund 
Advisors
9,282,716
4.24
Blackrock
9,173,061
4.19
Lombard Odier 
Investment Managers
9,129,727
4.17
Vanguard Group
9,038,380
4.13
Schroder Investment 
Management
7,676,764
3.51
Morgan Stanley
7,290,286
3.33
As at 17 July 2024, the notifiable interests 
have not crossed reporting thresholds 
under DTR5 except for Janus Henderson 
Investors which now hold 10,226,516 shares 
representing 4.87% of voting rights, Morgan 
Stanley which now hold 13,000,957 shares 
representing 5.94% of voting rights, and 
Aberforth Partners LLP which now holds 
11,205,625 shares representing 5.12% of 
voting rights.
 halfords.annualreport2024.com
153
GOVERNANCE

Authority to Purchase Shares
At the 2023 Annual General Meeting, 
shareholders approved a special resolution 
authorising the Company to purchase a 
maximum of 21,892,874 shares, representing 
not greater than 10% of the Company’s 
issued share capital at 13 July 2023, such 
authority expiring at the conclusion of the 
Annual General Meeting to be held in 2024 or, 
if earlier, on 30 September 2024.
Transactions with Related Parties
During the period, the Company did not 
enter into any material transactions with any 
related parties.
Articles of Association
In accordance with the Companies Act 
2006, the Articles of Association may 
only be amended by a special resolution 
of the Company’s shareholders in a 
general meeting.
Political Donations
The Group made no political donations and 
incurred no political expenditure during the 
period (FY23: nil). It remains the Company’s 
policy not to make political donations or 
to incur political expenditure. However, we 
recognise that the application of the relevant 
provisions of the Companies Act 2006 
is potentially very broad in nature and, as 
last year, the Board is seeking shareholder 
authority to ensure that the Group does not 
inadvertently breach these provisions as a 
result of the breadth of its business activities. 
However, the Board has no intention of using 
this shareholder authority.
Credit Facilities, Change of 
Control and Share Schemes
The Company’s committed revolving credit 
facilities require the Company, in the event 
of a change of control, to notify the Facility 
Agent and, if required by the majority 
lenders, these facilities may be cancelled. 
The Company does not have agreements 
with any Director or colleague that would 
provide compensation for loss of office 
or employment resulting from a takeover, 
except that provisions of the Company’s 
share schemes and Deferred Bonus Plan 
may cause options and awards granted 
to Directors and colleagues under such 
schemes and plans to vest on a takeover.
Details of employee share plans are provided 
in Note 24 on pages 208 to 210.
Modern Slavery Statement
In order to support its estate of Retail stores, 
garages, mobile vans and online operations, 
the Group sources products from a large 
number of suppliers both within the UK and 
overseas. In particular, the international 
suppliers – managed largely by the Halfords 
Global Sourcing (“HGS”) team based in Hong 
Kong, Taiwan and Shanghai – are bound 
contractually by the Group’s policies on 
modern slavery and human trafficking, as 
detailed within the Global Sourcing Code (the 
“Sourcing Code”). 
The Company continues to be committed 
to ensuring due diligence processes remain 
robust. Our Global Sourcing Code supports 
the Company’s commitment to respect 
human rights and uphold international 
standards, including the United Nations (“UN”) 
Guiding Principles on Business and Human 
Rights and the Organisation for Economic 
Cooperation and Development (“OECD”) 
Guidelines for Multinational Enterprises. The 
Company partners with EcoVadis, a platform 
that rates the environmental, social and 
governance performance of suppliers. The 
output of this data will support due diligence 
processes – and will assess good supplier 
performance as well as where corrective 
action, remediation or additional audits may 
be required. 
In line with the requirements of the Modern 
Slavery Act, all colleagues are trained on the 
issue of modern slavery, with a mandatory 
e-learning module. This supports colleagues 
with their understanding and what they 
should do if they suspect modern slavery 
taking place. 
During the period, no concerns were raised 
regarding any of the Group’s suppliers. It is 
recognised that whilst no incidents were 
raised (through contractual mechanisms) 
this does not mean issues do not potentially 
exist. The Company, therefore, remains 
committed to further enhancing its approach 
and understanding and enhancing its due 
diligence process. 
The Group’s Board of Directors reviews 
its Modern Slavery Statement on an 
annual basis. It was last approved on 6 
September 2023. 
Creditor Payment Policy
The Group does not follow any formal Code 
of Practice on payment. Instead, it agrees 
terms and conditions for transactions when 
orders for goods or services are placed, 
and includes relevant terms in contracts, 
as appropriate. These arrangements are 
adhered to when making payments, subject 
to the terms and conditions being met by 
suppliers. The number of trade creditor 
days outstanding as at 29 March 2024 for 
the Group was 72 days (2023: 74 days). The 
Company is a holding company and has no 
trade creditors. 
Branches
The Company and its subsidiaries, where 
relevant, have established overseas branches 
in the countries in which they operate.
Auditor
The Company’s and the Group’s external 
Auditor is BDO LLP. A resolution proposing 
the reappointment of BDO LLP will be set 
out in the Notice of the 2024 Annual General 
Meeting and will be put to shareholders at 
the meeting.
Disclosure of Information to the 
Auditor
In accordance with Section 418(2) of the 
Companies Act 2006, each Director in office 
at the date and approval of the Directors’ 
Report confirms that: 
i.	 in so far as the Directors are aware, there is 
no relevant audit information of which the 
Company’s Auditor is unaware; and 
ii.	 the Directors have taken all reasonable 
steps to ascertain any relevant audit 
information and to ensure that the 
Company’s Auditor is aware of such 
information.
Important Events Since Year End
There have not been any important events 
since the year-end.
Annual General Meeting (“AGM”)
The AGM will be held at the Halfords Group 
plc Support Centre, Icknield Street Drive, 
Washford West, Redditch B98 0DE on 
Friday 6 September 2024. The Notice of the 
AGM and explanatory notes regarding the 
ordinary and special business to be put to the 
meeting will be set out in a separate circular 
to shareholders.
By order of the Board
Tim O’Gorman
Group Company Secretary
17 July 2024
154
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
DIRECTORS’ 
REPORT

The directors are responsible for preparing 
the annual report and the financial 
statements in accordance with UK-adopted 
international accounting standards and 
applicable laws and regulations. 
Company law requires the directors to 
prepare financial statements for each 
financial year. Under that law the directors 
are required to prepare the group financial 
statements in accordance with UK-adopted 
international accounting standards and have 
elected to prepare the company financial 
statements in accordance with United 
Kingdom Generally Accepted Accounting 
Practice (United Kingdom Accounting 
Standards and applicable laws). Under 
company law, the directors must not approve 
the financial statements unless they are 
satisfied that they give a true and fair view of 
the state of affairs of the group and company 
and of the profit or loss for the group for 
that period. 
In preparing these financial statements, the 
directors are required to:
•	 select suitable accounting policies and 
then apply them consistently;
•	 make judgements and accounting 
estimates that are reasonable and prudent;
•	 state whether they have been prepared in 
accordance with UK-adopted international 
accounting standards, subject to any 
material departures disclosed and 
explained in the financial statements;
•	 prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the group 
and the company will continue in business; 
•	 prepare a Directors’ report, a Strategic 
report and Directors’ Remuneration Report 
which comply with the requirements of the 
Companies Act 2006.
The directors are responsible for keeping 
adequate accounting records that are 
sufficient to show and explain the company’s 
transactions and disclose with reasonable 
accuracy at any time the financial position 
of the company and enable them to ensure 
that the financial statements comply with the 
Companies Act 2006. 
They are also responsible for safeguarding 
the assets of the company and hence for 
taking reasonable steps for the prevention 
and detection of fraud and other irregularities. 
The Directors are responsible for ensuring 
that the annual report and accounts, 
taken as a whole, are fair, balanced, and 
understandable and provides the information 
necessary for shareholders to assess the 
group’s performance, business model 
and strategy. 
Website Publication
The Directors are responsible for ensuring 
the Annual Report and the financial 
statements are made available on a website. 
Financial statements are published on the 
Company’s website in accordance with 
legislation in the United Kingdom governing 
the preparation and dissemination of financial 
statements, which may vary from legislation 
in other jurisdictions. The maintenance 
and integrity of the company’s website 
is the responsibility of the directors. The 
directors’ responsibility also extends to the 
ongoing integrity of the financial statements 
contained therein.
Directors’ Responsibilities 
Pursuant to DTR4
The directors confirm to the best of 
their knowledge:
•	 The financial statements have been 
prepared in accordance with the applicable 
set of accounting standards, give a true 
and fair view of the assets, liabilities, 
financial position and profit and loss of 
the group.
•	 The annual report includes a fair review 
of the development and performance of 
the business and the financial position 
of the group and company, together with 
a description of the principal risks and 
uncertainties that they face.
•	 The Report and Financial statements, 
taken as a whole, is fair, balanced and 
understandable and provides the 
information necessary for Shareholders 
to assess the Group’s position and 
performance, business model and strategy.
Approved by order of the Board.
Keith Williams
Chair
17 July 2024
DIRECTORS’ 
RESPONSIBILITIES
 halfords.annualreport2024.com
155
GOVERNANCE

FINANCIAL 
STATEMENTS
CONTENTS
Independent Auditor’s Report
158
Consolidated Income Statement
168
Consolidated Statement of 
Comprehensive Income
169
Consolidated Statement of  
Financial Position
170
Consolidated Statement of Changes  
in Shareholders’ Equity
171
Consolidated Statement of Cash Flows
172
Notes to Consolidated Statement  
of Cash Flows
173
Accounting Policies
174
Notes to the Financial Statements
186
Company Balance Sheet
214
Company Statement of Changes  
in Shareholders’ Equity
215
Accounting Policies
216
Notes to the Financial Statements
217
156
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024

FINANCIAL 
STATEMENTS 
157
 halfords.annualreport2024.com

Opinion on the 
financial statements
In our opinion:
•	 the financial statements give a true and fair 
view of the state of the Group’s and of the 
Parent Company’s affairs as at 29 March 
2024 and of the Group’s profit for the 52 
weeks then ended;
•	 the Group financial statements have 
been properly prepared in accordance 
with UK adopted international accounting 
standards;
•	 the Parent Company financial statements 
have been properly prepared in 
accordance with United Kingdom Generally 
Accepted Accounting Practice; and
•	 the financial statements have been 
prepared in accordance with the 
requirements of the Companies Act 2006.
We have audited the financial statements of 
Halfords Group plc (the ‘Parent Company’) 
and its subsidiaries (the ‘Group’) for the 52 
weeks ended 29 March 2024 which comprise 
the Consolidated Income Statement, the 
Consolidated Statement of Comprehensive 
Income, the Consolidated Statement 
of Financial Position, the Consolidated 
Statement of Changes in Shareholders’ 
Equity, the Consolidated Statement of 
Cash Flows, the Company Balance Sheet, 
the Company Statement of Changes in 
Shareholders’ Equity and notes to the 
financial statements, including a summary of 
significant accounting policies. 
The financial reporting framework that 
has been applied in the preparation of the 
Group financial statements is applicable law 
and UK adopted international accounting 
standards. The financial reporting framework 
that has been applied in the preparation of 
the Parent Company financial statements 
is applicable law and United Kingdom 
Accounting Standards, including Financial 
Reporting Standard 101 Reduced Disclosure 
Framework (United Kingdom Generally 
Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with 
International Standards on Auditing (UK) (ISAs 
(UK)) and applicable law. Our responsibilities 
under those standards are further described 
in the Auditor’s responsibilities for the audit 
of the financial statements section of our 
report. We believe that the audit evidence we 
have obtained is sufficient and appropriate 
to provide a basis for our opinion. Our audit 
opinion is consistent with the additional 
report to the Audit Committee. 
Independence
Following the conclusion of a formal tender 
process led by the Audit Committee, 
the Board proposed appointment of 
BDO LLP as the Parent Company’s auditor 
for the financial year ended 3 April 2020 
and subsequent financial periods. The 
appointment was approved by the Parent 
Company’s shareholders at the Annual 
General Meeting on 31 July 2019.The period 
of total uninterrupted engagement including 
retenders and reappointments is 5 years, 
covering the years ended 3 April 2020 to 
29 March 2024. We remain independent 
of the Group and the Parent Company in 
accordance with the ethical requirements 
that are relevant to our audit of the financial 
statements in the UK, including the FRC’s 
Ethical Standard as applied to listed public 
interest entities, and we have fulfilled our 
other ethical responsibilities in accordance 
with these requirements. The non-audit 
services prohibited by that standard were 
not provided to the Group or the Parent 
Company. 
Conclusions relating 
to going concern
In auditing the financial statements, we have 
concluded that the Directors’ use of the 
going concern basis of accounting in the 
preparation of the financial statements is 
appropriate. Our evaluation of the Directors’ 
assessment of the Group and the Parent 
Company’s ability to continue to adopt the 
going concern basis of accounting included:
•	 Assessment of assumptions within 
the projected cash flows: we evaluated 
the reasonableness of the assumptions 
and future plans modelled within the 
Board approved going concern forecasts, 
covering the period to 31 July 2025 and 
including the impact of strategic initiatives 
as well as the ongoing and uncertain 
impact of current macro-economic 
factors including consumer spending, 
national minimum wage, energy prices and 
interest rates. This involved evaluation of 
the budgeted figures compared to FY24, 
consideration of inflationary impacts and 
other adjustments applied by the Directors 
reflecting pricing communications with 
certain suppliers and external data used to 
support assumptions.
•	 Arithmetical accuracy: we assessed the 
arithmetical accuracy of management’s 
going concern model.
•	 Financing: confirmed the Group 
had committed financing facilities in 
place throughout the period of the 
going concern review as modelled 
in its forecasts. We also recomputed 
the calculations supporting covenant 
compliance and headroom throughout the 
going concern period with reference to the 
revolving credit facility agreement.
•	 Sensitivity analysis: evaluation of 
sensitivities of the Group’s cash flow 
forecasts with reference to the headroom 
and financial covenants in place over the 
existing committed financing facilities. The 
analysis considered reasonably possible 
adverse effects that could arise as well 
as a stress test to consider the level of 
future revenue reduction the Group could 
support before breaching covenants. 
We recomputed the Directors prepared 
sensitivities applied to the forecasts and 
further considered these by applying 
additional sensitivity testing.
•	 Reverse stress test: we assessed 
management’s reverse stress test and 
were satisfied it was a scenario that, in our 
view, was not plausible.
158
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
INDEPENDENT AUDITOR’S  
REPORT TO THE MEMBERS OF  
HALFORDS GROUP PLC

•	 Post year end trading performance: 
comparison of the post year end trading 
results to the forecasts so as to evaluate 
the accuracy and achievability of the 
forecasts prepared.
•	 Disclosures: evaluation of the adequacy 
of the disclosures in relation to the risks 
posed and scenarios the Directors have 
considered in performing their going 
concern assessment and the requirements 
of the accounting framework.
Based on the work we have performed, 
we have not identified any material 
uncertainties relating to events or conditions 
that, individually or collectively, may cast 
significant doubt on the Group and the 
Parent Company’s ability to continue as a 
going concern for a period of at least twelve 
months from when the financial statements 
are authorised for issue. 
In relation to the Parent Company’s reporting 
on how it has applied the UK Corporate 
Governance Code, we have nothing material 
to add or draw attention to in relation to 
the Directors’ statement in the financial 
statements about whether the Directors 
considered it appropriate to adopt the going 
concern basis of accounting.
Our responsibilities and the responsibilities of 
the Directors with respect to going concern 
are described in the relevant sections of this 
report.
Overview
Coverage
88% (2023: 89%) of Group profit before tax
94% (2023: 90%) of Group revenue
85% (2023: 92%) of Group total assets
Key Audit Matters
FY24
FY23
1.	Goodwill impairment testing for the Retail and Autocentres Segments
P
P
2.	Carrying value of the Parent Company’s Investment in subsidiaries and 
intercompany receivables
P
P
3.	Third Party Logistics Arrangement1
P
P
4.	Supplier income2
P
5.	Acquisition of LTC Trading Holdings Limited and subsidiaries (“Lodge Tyre”)3
P
6.	The consolidation of the Group results and financial position4
P
1	
This key audit matter has been expanded in the current year to include new arrangements that the Group has entered into with this third party.
2	
Supplier income is a material income stream for the Group and as a result of increasing complexity in the nature and timing of the income from 
suppliers, this has become a key audit matter.
3	
The acquisition of Lodge Tyre was previously noted as a key audit matter as it was material to the group owing to the complexity and significant 
management estimates and judgements. As this acquisition was relating to the previous year, it is no longer considered a key audit matter.
4	
The consolidation of the Group results and financial position was previously noted as a key audit matter as the group structure had grown significantly 
due to acquisitions, increasing the complexity of the Group consolidation process. In the current year, the consolidation process has been simplified, 
and it is no longer considered a key audit matter.
Materiality
Group financial statements as a whole
£5.1m (FY23: £3.3m) based on 0.3% of the Group’s revenue.
(FY23: 5% of normalised profit before tax and non-underlying items)
 halfords.annualreport2024.com
159
FINANCIAL 
STATEMENTS 

An overview of the scope 
of our audit
Our Group audit was scoped by obtaining 
an understanding of the Group and its 
environment, including the Group’s system 
of internal control, and assessing the risks 
of material misstatement in the financial 
statements. We also addressed the risk of 
management override of internal controls, 
including assessing whether there was 
evidence of bias by the Directors that 
may have represented a risk of material 
misstatement.
A full scope audit was completed in respect 
of four significant components. The 
remaining components were assessed as 
non-significant and subject to specified 
audit and analytical review procedures. BDO 
LLP, through either the Group audit team 
or component audit team completed the 
audits of the four significant components 
and specified audit and analytical review 
procedures for all non-significant 
components. All components are located in 
the UK.
Our involvement with 
component auditors
For the work performed by component 
auditors, the Group audit team determined 
the level of involvement needed in order 
to be able to conclude whether sufficient 
appropriate audit evidence has been 
obtained as a basis for our opinion on the 
Group financial statements as a whole. 
Our involvement with component auditors 
included the following:
•	 Issuing Group reporting instructions, 
detailing the significant areas to be 
covered by their audit (including applicable 
key audit matters as detailed below), 
materiality levels, and matters relating to 
irregularities and fraud. The instructions 
also set out the information required to be 
reported to the Group audit team;
•	 Regular communication with the 
component auditors throughout the 
planning, execution and completion 
phases of the audit;
•	 Attending a number of component 
management meetings relating to the 
key audit matter (Third Party Logistics 
Arrangement) and ongoing dialogue with 
the component audit partner relating to 
this throughout the audit; and
•	 Review of selected component audit 
working papers.
Climate change
Our work on the assessment of potential 
impacts of climate-related risks on the 
Group’s operations and financial statements 
included:
•	 Enquiries and challenge of management 
to understand the actions they have 
taken to identify climate-related risks and 
their potential impacts on the financial 
statements and adequately disclose 
climate-related risks within the annual 
report;
•	 Our own qualitative risk assessment taking 
into consideration the sector in which the 
Group operates and how climate change 
affects this particular sector; and
•	 Review of the minutes of Board, Audit 
and ESG Committee meetings and other 
papers related to climate change and 
performed a risk assessment as to how the 
impact, if any, of the Group’s commitments 
as set out in the ESG Performance 
overview on page 56, may affect the 
financial statements and our audit.
We challenged the extent to which climate-
related considerations, including the 
expected cash flows from the initiatives and 
commitments have been reflected, where 
appropriate, in management’s going concern 
assessment and viability assessment.
We also assessed the consistency of 
managements disclosures included as 
Statutory Other Information on page 69 
with the financial statements and with our 
knowledge obtained from the audit. 
Based on our risk assessment procedures, 
we did not identify there to be any Key Audit 
Matters materially impacted by climate-
related risks and related commitments. 
Key audit matters
Key audit matters are those matters that, in 
our professional judgement, were of most 
significance in our audit of the financial 
statements of the current period and include 
the most significant assessed risks of 
material misstatement (whether or not due 
to fraud) that we identified, including those 
which had the greatest effect on: the overall 
audit strategy, the allocation of resources 
in the audit, and directing the efforts of the 
engagement team. These matters were 
addressed in the context of our audit of 
the financial statements as a whole, and in 
forming our opinion thereon, and we do not 
provide a separate opinion on these matters.
160
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
INDEPENDENT AUDITOR’S  
REPORT TO THE MEMBERS OF  
HALFORDS GROUP PLC

Key audit matter
How the scope of our audit addressed the key audit matter
Goodwill impairment 
testing for the Retail 
and Autocentres 
Segments
(The accounting policies 
and critical judgements 
and estimates applied 
are disclosed within 
the Group’s accounting 
policies. The goodwill 
balances of £403.6m are 
included in Note 12)
The goodwill balances on the Group 
balance sheet for the Retail and 
Autocentres segments are significant 
and subject to annual impairment testing.
In assessing the carrying value of 
goodwill the Group has to estimate 
the recoverable amount of its cash 
generating units in the Retail and 
Autocentres segments. This requires the 
forecasting and discounting of future 
cashflows for inclusion within a value in 
use model.
The value in use model includes a high 
degree of management judgement and 
estimation uncertainty, particularly owing 
to the impact of current macroeconomic 
trends and the impact that has on 
consumer demand. The goodwill 
impairment review has therefore been 
raised as a key audit matter.
Our audit procedures included:
•	 Assessing the judgements and methodology applied by 
the Group in the goodwill impairment testing model against 
the relevant accounting standards and considering the 
requirements of IAS36 (Impairment) and IFRS8 (Operating 
Segments).
•	 Challenging management’s assessment of cash generating 
units (CGUs) and the level at which goodwill was tested for 
impairment.
•	 Assessing the reasonableness of the Group’s budgets and 
forecasts by considering the historical accuracy of previous 
forecasts.
•	 Confirming that the cashflows modelled agreed to the Board 
approved budgets and cashflow forecasts used to support the 
Group’s going concern and viability assessment.
•	 With the assistance of our internal valuation experts assessing 
the reasonableness of the Group’s discount rate applied, by 
corroborating the relevant inputs into the calculation to external 
sources.
•	 Challenging management to understand the most significant 
assumptions in the cashflow forecasts and corroborating these 
to source documentation and information available externally.
•	 Considering the sensitivity analysis performed by the Group 
that included the assessment of reasonably possible adverse 
effects that could arise as a result of a decrease in revenue from 
weaker consumer demand as applied to the going concern 
considerations.
•	 We also performed our own sensitivity analysis applying 
different scenarios targeted at gross margins, discount rates, 
discretionary spend, cost mitigation actions and growth rates.
•	 Assessing whether the Group’s disclosures provide sufficient 
details on the key judgements within the impairment model 
and sources of estimation uncertainty, including sensitivity 
disclosures.
Key observations:
Based on the procedures performed, we found the judgements 
and estimates made in the Group’s conclusion that there is no 
impairment of the goodwill in the Retail and Autocentres segments 
to be appropriate.
 halfords.annualreport2024.com
161
FINANCIAL 
STATEMENTS 

Key audit matter
How the scope of our audit addressed the key audit matter
Carrying value of the 
parent Company’s 
investment in 
subsidiaries of 
£817.6m (FY23: 
£813.8m) and 
intercompany 
receivables of £55.7m.
(The accounting policy 
applied is disclosed 
within the parent 
Company and the Group 
accounting policies. 
The investment and 
intercompany balances 
are disclosed in Notes 
4 and 5 to the parent 
Company Financial 
statements)
The Parent Company’s investment in 
subsidiaries represents its investment in 
the underlying trading businesses of the 
Group. The intercompany receivables 
include amounts loaned to subsidiary 
undertakings. The recoverability of 
the investment and the intercompany 
receivables is dependent on the future 
cashflows of these subsidiaries and a 
material impairment to these balances 
could result in implications for future 
dividends. The directors have prepared 
a value in use assessment to support 
the carrying value and have determined 
that there is no impairment of the 
investment. However there has been a 
material impairment of the intercompany 
receivable.
Due to the materiality of the investment 
and the receivable balances in the parent 
Company financial statements this 
together with the related disclosures was 
raised as a key audit matter for our parent 
Company audit.
Our audit procedures included:
•	 Comparing the net assets of the Parent Company to the market 
capitalisation of the Group as at the year end date and post 
year end.
•	 Comparing the carrying value of the investment and the 
receivables to the net present value of future cash flows.
•	 Agreeing the terms of the intercompany loan balances to loan 
documents where appropriate.
•	 Obtaining the directors’ assessment of the carrying values 
and confirming whether this was in line with the value in use 
calculations performed for goodwill impairment testing for the 
Retail and Autocentres CGUs.
•	 Assessing the cashflow models prepared to support the value 
in use calculation by testing the appropriateness of key inputs 
into the calculations.
•	 Performing sensitivity analysis on the key assumptions.
•	 Reviewing the disclosure notes in the Group and parent 
company financial statements to ensure that these covered any 
key estimates and judgements related to the carrying values as 
appropriate.
Key observations:
Based on the procedures performed, we found management’s 
conclusions that there is no impairment of the investment and an 
impairment of the amounts due from subsidiaries in the Parent 
Company to be appropriate.
162
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
INDEPENDENT AUDITOR’S  
REPORT TO THE MEMBERS OF  
HALFORDS GROUP PLC

Key audit matter
How the scope of our audit addressed the key audit matter
Third Party Logistics 
Arrangement
(The related accounting 
policies are disclosed 
within the accounting 
policies section of the 
financial statements 
on page 175 and 
180. The Cashflows 
relating to the supplier 
financing element of 
the transactions are 
classified as cashflows 
from financing activities 
on the face of the 
Consolidated statement 
of cashflows and the 
supplier financing 
receivable is separately 
disclosed in note 16)
At the beginning of the financial year, 
the Group had an ongoing logistics 
arrangement with different types of 
transactions with a third party and during 
the year, the Group entered into a number 
of new transactions with this third party 
as disclosed on page 175 of the financial 
statements.
Determining the accounting 
considerations and disclosures for the 
various transactions is complex as the 
transactions between the Group and 
the third party are material and involve 
a number of balance sheet accounts 
across entities in the Group and we 
therefore considered this to be a key 
audit matter.
Our audit procedures included:
•	 Reviewing the underlying agreements and enquiry with the 
Group’s commercial, purchasing and finance representatives to 
understand the nature of the arrangements and transactions.
•	 Obtaining a confirmation from the third party to support the 
value of the transactions during the year and the balances 
outstanding at the year end date.
•	 Assessing the accounting for the transactions against the 
requirements of the applicable accounting standards and 
agreeing a sample of transactions during the year to third party 
supporting documentation.
•	 Reviewing the timing of the receipts and payments which 
resulted in a cashflow advantage to the Group and assessing 
the appropriateness of the conclusion that the cashflows in the 
arrangement were financing in nature, against the requirements 
of the applicable standards. We also assessed if the disclosures 
are in line with the applicable accounting standards.
•	 Assessing the classification and disclosure of these 
transactions and the balances outstanding at the year end date 
against the requirements of IAS 1, IAS 7 and IFRS 7.
•	 Obtaining the agreement for the new transactions and 
reviewing the terms to understand the nature and the financial 
reporting implication of these transactions.
Key observations:
Based on the procedures performed, we did not identify any 
matter to suggest that the accounting for these transactions is 
materially incorrect and the disclosures are inappropriate.
 halfords.annualreport2024.com
163
FINANCIAL 
STATEMENTS 

Key audit matter
How the scope of our audit addressed the key audit matter
Supplier Income
(The accounting policies 
applied are disclosed 
within the accounting 
policies section of the 
financial statements.)
The Group has agreements with a 
number of suppliers related to rebates 
and other supplier income. This is a 
material transaction stream for the 
Group and arrangements tend to be 
complex and multi-faceted as there 
are a significant number of different 
agreements with different terms which 
impacts various financial statement areas. 
Therefore we considered the accounting 
of these transactions to be a key audit 
matter.
Our audit procedures included:
•	 Obtaining an understanding of management’s process and 
controls relating to the approval and recording of supplier 
income.
•	 Testing the existence of rebates by agreeing a sample 
of supplier income received in the year to the underlying 
agreements.
•	 Testing the validity and accuracy of a sample of supplier income 
earned in the year by obtaining the supporting calculations 
and agreeing the inputs in the calculation to the terms of the 
underlying agreements.
•	 Checking if a sample of the rebates have been classified in the 
income statement in line with the Group’s accounting policy. 
•	 Assessing the recoverability of the rebates receivable at the 
year end date by testing a sample to year end debit notes 
received or invoices raised and subsequent settlement.
•	 Obtaining the calculation for a sample of one-off rebate 
amounts recognised in the year and rebates recognised near 
the year end date, and agreeing the inputs in the calculation 
to the underlying agreements. We also agreed the rebate to 
accrued income and inventory calculations.
•	  Reviewing the related disclosures in the Group’s financial 
statements against the requirement of the applicable standard.
Key observations:
Based on the procedures performed, we did not identify any 
matter to suggest that the accounting for these transactions is 
materially incorrect and the disclosures are inappropriate.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider 
materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users that 
are taken on the basis of the financial statements. 
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, 
performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be 
evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, 
when evaluating their effect on the financial statements as a whole. 
Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows:
164
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
INDEPENDENT AUDITOR’S  
REPORT TO THE MEMBERS OF  
HALFORDS GROUP PLC

Group financial statements
Parent company financial statements
2024
2023
2024
2023
Materiality
£5.1m
£3.3m
£2.8m
£1.8m
Basis for determining 
materiality
0.3% of Group revenue.
5% of normalised (3 year 
average) profit before tax 
and non-underlying items.
Determined with 
reference to 80% of 
Group’s performance 
materiality. (Capped at 
Group non-significant 
components materiality 
to reduce aggregation 
risk).
Determined with reference 
to 1% of total assets 
(Capped at Group non-
significant components 
materiality to reduce 
aggregation risk).
Rationale for the 
benchmark applied
We consider revenue to 
be the most appropriate 
benchmark due to the 
significant growth the 
group has experienced 
in the past few years 
through various 
acquisitions.
We consider applying a 
component materiality 
equal to 80% of group 
performance materiality 
is sufficient to address 
the aggregation risk.
Performance materiality
£3.57m
£2.3m
£1.96m
£1.29m
Basis for determining 
performance materiality 
and the rationale for the 
percentage applied. 
Performance materiality was set at 70% of materiality. In setting the level of performance materiality we considered 
a number of factors including the expected total value of known and likely misstatements based on past 
experience.
Component materiality
We set materiality for each significant component of the Group, based on a percentage of between 33% and 59% (2023: 48% and 95%) of 
Group materiality dependent on the size and our assessment of the risk of material misstatement of that component. Component materiality 
ranged from £1.7m to £3m (2023: £1.57m to £2.8m). In the audit of each component, we further applied performance materiality levels 
of 70% (2023: 70%) of the component materiality to our testing to ensure that the risk of errors exceeding component materiality was 
appropriately mitigated.
Reporting threshold 
We agreed with the Audit Committee that we would report to them all individual audit differences in excess of £153K (2023:£105K). We also 
agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the information included in the Annual Report and 
Accounts other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other 
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 
financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such 
material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in 
the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other 
information, we are required to report that fact.
We have nothing to report in this regard.
Corporate governance statement
The Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and that part of the Corporate 
Governance Statement relating to the parent company’s compliance with the provisions of the UK Corporate Governance Code specified for 
our review. 
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance 
Statement is materially consistent with the financial statements or our knowledge obtained during the audit. 
 halfords.annualreport2024.com
165
FINANCIAL 
STATEMENTS 

Going concern and 
longer-term viability
•	 The Directors’ statement with regards to the appropriateness of adopting the going concern basis of 
accounting and any material uncertainties identified set out on pages 90 and 91.
•	 The Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment 
covers and why the period is appropriate set out on page 91.
Other Code provisions 
•	 Directors’ statement on fair, balanced and understandable set out on page 150 to 155. 
•	 Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out 
on pages 83 to 89. 
•	 The section of the annual report that describes the review of effectiveness of risk management and internal 
control systems set out on pages 81 and 82.
•	 The section describing the work of the Audit Committee set out on page 126 to 131.
Other Companies Act 2006 
reporting
Based on the responsibilities described 
below and our work performed during the 
course of the audit, we are required by the 
Companies Act 2006 and ISAs (UK) to report 
on certain opinions and matters as described 
below. 
Strategic report and 
Directors’ report 
In our opinion, based on the work undertaken in the course of the audit:
•	 the information given in the Strategic report and the Directors’ report for the financial year for which the 
financial statements are prepared is consistent with the financial statements; and
•	 the Strategic report and the Directors’ report have been prepared in accordance with applicable legal 
requirements.
In the light of the knowledge and understanding of the Group and Parent Company and its environment 
obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the 
Directors’ report.
Directors’ 
remuneration
In our opinion, the part of the Directors’ remuneration report to be audited has been properly prepared in 
accordance with the Companies Act 2006.
Matters on which we 
are required to report 
by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 
requires us to report to you if, in our opinion:
•	 adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit 
have not been received from branches not visited by us; or
•	 the Parent Company financial statements and the part of the Directors’ remuneration report to be audited are 
not in agreement with the accounting records and returns; or
•	 certain disclosures of Directors’ remuneration specified by law are not made; or
•	 we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors’ 
responsibilities, the Directors are responsible 
for the preparation of the financial 
statements and for being satisfied that 
they give a true and fair view, and for such 
internal control as the Directors determine 
is necessary to enable the preparation 
of financial statements that are free from 
material misstatement, whether due to fraud 
or error.
In preparing the financial statements, the 
Directors are responsible for assessing the 
Group’s and the Parent Company’s ability to 
continue as a going concern, disclosing, as 
applicable, matters related to going concern 
and using the going concern basis of 
accounting unless the Directors either intend 
to liquidate the Group or the Parent Company 
or to cease operations, or have no realistic 
alternative but to do so.
Auditor’s responsibilities for the 
audit of the financial statements
Our objectives are to obtain reasonable 
assurance about whether the financial 
statements as a whole are free from material 
misstatement, whether due to fraud or 
error, and to issue an auditor’s report that 
includes our opinion. Reasonable assurance 
is a high level of assurance, but is not a 
guarantee that an audit conducted in 
accordance with ISAs (UK) will always detect 
a material misstatement when it exists. 
Misstatements can arise from fraud or error 
and are considered material if, individually 
or in the aggregate, they could reasonably 
be expected to influence the economic 
decisions of users taken on the basis of 
these financial statements.
Extent to which the audit was 
capable of detecting irregularities, 
including fraud
Irregularities, including fraud, are instances 
of non-compliance with laws and regulations. 
We design procedures in line with our 
responsibilities, outlined above, to detect 
material misstatements in respect of 
irregularities, including fraud. The extent 
to which our procedures are capable of 
detecting irregularities, including fraud is 
detailed below:
166
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
INDEPENDENT AUDITOR’S  
REPORT TO THE MEMBERS OF  
HALFORDS GROUP PLC

Non-compliance with laws 
and regulations
We gained an understanding of the legal and 
regulatory framework applicable to the Group, 
its components and the industry in which it 
operates, and considered the risk of acts by 
the Group which were contrary to applicable 
laws and regulations, including fraud. These 
included but were not limited to compliance 
with Companies Act 2006, the Financial 
Conduct Authority regulations, including the 
UK Listing Rules, the principles of the UK 
Corporate Governance Code, UK adopted 
international accounting standards, UK GAAP 
for the parent company, and tax legislation 
covering corporation tax, employee taxes, 
VAT and duty. 
In identifying and assessing risks of material 
misstatement in respect of irregularities, 
including fraud, we considered the following:
•	 the nature of the industry, the Group’s 
control environment and business 
performance including the design of the 
Group’s remuneration policies;
•	 the results of our enquiries of 
management, the Audit Committee, 
Internal audit and legal counsel about 
their own identification of the risk of 
irregularities;
•	 any matters we identified having obtained 
and reviewed the Group’s documentation 
of their policies and procedures; and
•	 the matters discussed among the 
engagement team regarding how and 
where fraud might occur in the financial 
statements and any potential indicators of 
fraud. We also discussed the potential for 
non-compliance with laws and regulations. 
We focused on laws and regulations that 
could give rise to a material misstatement in 
the financial statements. We also considered 
the susceptibility of the Group and Parent 
company financial statements to material 
misstatement as a result of fraud, and 
considered that the areas in which fraud might 
occur were related to revenue recognition 
relating to the judgements and estimates 
involved in the timing of revenue recognition, 
possible overstatement of revenue and 
management override of controls.
Our procedures in response to the above 
included:
•	 review of financial statement 
disclosures and agreeing to supporting 
documentation;
•	 identifying and testing journal entries 
through obtaining an understanding of 
the rationale of the journal and agreeing to 
supporting documentation, focusing on 
journal entries containing characteristics 
of audit interest, year end consolidation 
journals, journals processed by users with 
privileged IT access rights, journal entries 
posted to revenue, those with unusual 
account combinations and journals posted 
by unexpected users;
•	 enquiries with management, the Audit 
Committee and enquiries of internal 
legal counsel to identify any known or 
suspected non-compliance with laws and 
regulations or fraud;
•	 review of minutes of Board meetings 
throughout the year to identify any non 
compliance with laws and regulations, 
or fraud, not already disclosed by 
management;
•	 review of tax compliance and involvement 
of our tax specialists in the audit;
•	 with regards to the risk of fraud in 
existence and recoverability of supplier 
income, we have audited a sample of 
supplier income to 3rd party confirmations 
and we have challenged management 
on the recoverability of year end rebates 
through assessing post year end debit 
notes raised and/or cash receipts.
•	 with regards to the risk of fraud in revenue 
recognition we have challenged the 
assumptions and judgements made by 
management in the measurement of gift 
card, warranty and returns provisions 
and the assumptions made in revenue 
recognition for certain revenue streams 
and deferred revenue by agreeing 
assumptions to relevant supporting 
documentation.
•	 we have challenged significant accounting 
estimates and judgements made by 
management including:
–	 the capitalisation policies for 
intangible software assets against 
the requirements of the applicable 
accounting standards; and
–	 judgements made in accounting for third 
party logistics arrangements, provisions 
in relation to discontinued operations, in 
the assessment of goodwill impairment, 
and the carrying value of the Parent 
Company’s investment in subsidiaries 
and intercompany receivables as set 
out in the Key Audit Matters section of 
the report.
We communicated relevant identified laws 
and regulations and potential fraud risks to all 
engagement team members and component 
team members who were all deemed to have 
appropriate competence and capabilities 
to remain alert to any indications of fraud or 
non-compliance with laws and regulations 
throughout the audit. We have also reviewed 
the relevant work performed by the 
component team members in this regard.
Our audit procedures were designed to 
respond to risks of material misstatement in 
the financial statements, recognising that the 
risk of not detecting a material misstatement 
due to fraud is higher than the risk of not 
detecting one resulting from error, as fraud 
may involve deliberate concealment by, 
for example, forgery, misrepresentations 
or through collusion. There are inherent 
limitations in the audit procedures performed 
and the further removed non-compliance 
with laws and regulations is from the events 
and transactions reflected in the financial 
statements, the less likely we are to become 
aware of it.
A further description of our responsibilities 
is available on the Financial Reporting 
Council’s website at: www.frc.org.uk/
auditorsresponsibilities. This description 
forms part of our auditor’s report.
Use of our report
This report is made solely to the Parent 
Company’s members, as a body, in 
accordance with Chapter 3 of Part 16 of 
the Companies Act 2006. Our audit work 
has been undertaken so that we might state 
to the Parent Company’s members those 
matters we are required to state to them in 
an auditor’s report and for no other purpose. 
To the fullest extent permitted by law, we 
do not accept or assume responsibility to 
anyone other than the Parent Company and 
the Parent Company’s members as a body, 
for our audit work, for this report, or for the 
opinions we have formed.
Diane Campbell 
(Senior Statutory Auditor)
For and on behalf of BDO LLP,  
Statutory Auditor 
London
17 July 2024
BDO LLP is a limited liability partnership 
registered in England and Wales (with 
registered number OC305127).
 halfords.annualreport2024.com
167
FINANCIAL 
STATEMENTS 

For the period
52 weeks to 29 March 2024
52 weeks to 31 March 2023
Notes
Before
non-
underlying 
items
£m
Non-
underlying 
items
(note 5)
£m
Total
£m
Before
non-
underlying 
items
Restated*
£m
Non-
underlying 
items
(note 5)
£m
Total
£m
Revenue
 1,696.5 
– 
 1,696.5 
 1,572.7 
– 
 1,572.7 
Cost of sales*
(873.9)
– 
(873.9)
(804.0)
– 
(804.0)
Gross profit
822.6
– 
822.6
768.7 
– 
768.7
Operating expenses
2
(766.4)
(4.3)
(770.7)
(709.8)
(7.8)
(717.6)
Results from operating activities
3
 56.2 
(4.3)
51.9
 58.9 
(7.8)
 51.1 
Net finance expense
6
(13.1)
– 
(13.1)
(12.1)
– 
(12.1)
Profit before income tax
 43.1 
(4.3)
38.8
 46.8 
(7.8)
 39.0 
Income tax expense
7
(10.3)
 0.5 
(9.8)
(9.2)
 1.1 
(8.1)
Profit / (loss) after tax from 
continuing operations
 32.8 
(3.8)
29.0
 37.6 
(6.7)
 30.9 
Loss after tax from discontinued 
operations
10
(5.2)
(6.9)
(12.1)
(2.6)
(0.2)
(2.8)
Total profit for the year 
(continuing and discontinued)
 27.6 
(10.7)
16.9
 35.0 
(6.9)
 28.1 
Attributable to:
Equity shareholders
 27.6 
(10.7)
16.9
 35.0 
(6.9)
 28.1 
Non-controlling interest
–
–
–
– 
–
–
Earnings per share*
Basic (continuing)
9
15.1p
13.3p
17.6p
13.0p
Diluted (continuing)
9
14.5p
12.7p
16.8p
12.4p
Basic (continuing and discontinued)
9
12.7p
7.8p
16.1p
12.9p
Diluted (continuing and 
discontinued)
9
12.2p
7.4p
15.4p
12.4p
*	
Please see note 30 for further details
The notes on pages 174 to 213 form part of these consolidated financial statements.
168
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CONSOLIDATED 
INCOME STATEMENT

Notes
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
Restated*
£m
Profit for the period from continuing operations
29.0
30.9
Other comprehensive income
Cash flow hedges:
Fair value changes in the period
(1.3)
2.7
Income tax on other comprehensive income
7
(0.4)
 1.1 
Other comprehensive (loss) / income for the period, net of income tax
(1.7)
3.8
Total comprehensive income from continuing operations
27.3
34.7
Loss for the period from discontinued operations
(12.1)
(2.8)
Total comprehensive income from discontinued operations
(12.1)
(2.8)
Total comprehensive income
15.2
31.9
Attributable to:
Equity shareholders
15.2
31.9
Non-controlling interest
–
–
*	
Please see note 30 for further details
All items within Other Comprehensive Income are classified as items that are, or may be, recycled to the income statement.
The notes on pages 174 to 213 form part of these consolidated financial statements.
 halfords.annualreport2024.com
169
FINANCIAL 
STATEMENTS 
CONSOLIDATED STATEMENT 
OF COMPREHENSIVE INCOME

Notes
29 March
2024
£m
31 March
2023
Restated*
£m
Assets
Non-current assets
Intangible assets
12
483.9
 482.0 
Property, plant and equipment
13
89.5
 97.8 
Right-of-use assets
14
278.3
 312.6 
Trade and other receivables
16
2.3
– 
Deferred tax asset
21
5.1
 10.9 
Total non-current assets
859.1
 903.3 
Current assets
Inventories
15
237.5
 256.2 
Trade and other receivables
16
161.0
 144.6 
Derivative financial instruments
22
0.2
 1.1 
Current tax assets
8.4
– 
Cash and cash equivalents
17
13.3
 41.9 
Total current assets
420.4
 443.8 
Total assets
1,279.5
 1,347.1 
Liabilities
Current liabilities
Borrowings
18
(1.8)
(9.7)
Lease liabilities
14
(79.1)
(77.6)
Derivative financial instruments
22
(1.5)
(3.7)
Trade and other payables
19
(368.4)
(362.3)
Current tax liabilities
–
(3.6)
Provisions 
20
(12.4)
(11.2)
Total current liabilities
(463.2)
(468.1)
Net current liabilities
(42.8)
(24.3)
Non-current liabilities
Borrowings
18
(19.6)
(34.0)
Lease liabilities
14
(228.1)
(269.3)
Derivative financial instruments
22
(0.1)
(0.5)
Trade and other payables
19
(3.6)
(3.5)
Provisions
20
(11.1)
(14.8)
Total non-current liabilities
(262.5)
(322.1)
Total liabilities
(725.7)
(790.2)
Net assets
553.8
 556.9 
Equity
Share capital
23
 2.2 
 2.2 
Share premium 
23
 212.4 
 212.4 
Investment in own shares
23
(1.0)
(1.9)
Other reserves
23
–
(1.1)
Retained earnings
340.2
 345.3 
Total equity attributable to equity holders of the Company
553.8
 556.9 
Non-controlling interest
–
–
Total equity
553.8
 556.9 
*	
Please see note 30 for further details
The notes on pages 174 to 213 form part of these consolidated financial statements.
The consolidated financial statements on pages 168 to 213 were approved by the Board of Directors on 17 July 2024 and were signed on its 
behalf by: 
Jo Hartley
Chief Financial Officer
Company Number: 04457314
170
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CONSOLIDATED STATEMENT  
OF FINANCIAL POSITION

Note
Attributable to the equity holders of the Company
Other reserves
Share
capital
£m
Share
premium
account
£m
Investment
in own
shares 
£m
Capital
redemption
reserve
£m
Hedging
reserve
£m
Retained
earnings
£m
Total
shareholders’
equity
£m
Non-
controlling
interests
£m
Total
equity
£m
Closing balance at 1 April 2022
 2.2 
 212.4 
(11.6)
 0.3 
 1.7 
 346.0 
 551.0 
–
 551.0 
Restatement*
–
–
8.3
–
–
(8.3)
–
–
–
Closing balance at 1 April 2022 
restated
2.2
212.4
(3.3)
0.3
1.7
337.7
551.0
–
551.0
Total comprehensive income for 
the period
Profit for the period*
–
–
–
–
–
 28.1 
 28.1 
–
 28.1 
Other comprehensive income
Cash flow hedges:
Fair value changes in the period
–
–
–
–
 2.7 
–
 2.7 
–
 2.7 
Income tax on other comprehensive 
income
–
–
–
–
 1.1 
 – 
 1.1 
–
 1.1 
Total other comprehensive 
income for the period net of tax
 – 
 – 
 – 
 – 
 3.8 
 – 
 3.8 
 – 
 3.8 
Total comprehensive income for 
the period
 – 
 – 
 – 
 – 
 3.8 
 28.1 
 31.9 
 – 
 31.9 
Hedging gains and losses and 
costs of hedging transferred to 
the cost of inventory
 – 
– 
 – 
 – 
(6.9)
 – 
(6.9)
– 
(6.9)
Transactions with owners 
Purchase of own shares
23
–
–
(1.5)
–
–
–
(1.5)
– 
(1.5)
Share options exercised restated*
–
–
2.9
–
–
(2.5)
0.4
– 
0.4
Share-based payment transactions
24
–
–
–
–
 2.4 
 2.4 
– 
 2.4 
Income tax on share-based 
payment transactions
–
–
–
–
–
(0.9)
(0.9)
–
(0.9)
Dividends to equity holders
8
–
–
–
–
–
(19.5)
(19.5)
–
(19.5)
Total transactions with owners
 – 
 – 
1.4
 – 
 – 
(20.5)
(19.1)
 – 
(19.1)
Closing balance at 31 March 2023*
 2.2 
 212.4 
(1.9)
 0.3 
(1.4)
345.3 
 556.9 
 – 
 556.9 
Opening balance at 1 April 2023*
 2.2 
 212.4 
(1.9)
 0.3 
(1.4)
345.3
 556.9 
 – 
 556.9 
Total comprehensive income for 
the period
Profit for the period
–
–
–
–
–
16.9
16.9
 – 
16.9
Other comprehensive income
Cash flow hedges:
Fair value changes in the period
–
–
–
–
(1.3)
 – 
(1.3)
–
(1.3)
Income tax on other comprehensive 
income
–
–
–
–
(0.4)
 – 
(0.4)
–
(0.4)
Total other comprehensive 
expense for the period net of tax
 – 
 – 
 – 
 – 
(1.7)
 – 
(1.7)
 – 
(1.7)
Total comprehensive income/
(expense) for the period
 – 
 – 
 – 
 – 
(1.7)
16.9
15.2
 – 
15.2
Hedging gains and losses and 
costs of hedging transferred to 
the cost of inventory
 – 
 – 
 – 
 – 
2.8
 – 
2.8
 – 
2.8
Transactions with owners 
Purchase of own shares
23
 –
–
(10.2)
–
–
–
(10.2)
–
(10.2)
Share options exercised
23
–
–
11.1
–
–
(6.9)
4.2
4.2
Share-based payment transactions
24
–
–
–
–
 – 
3.8
3.8
3.8
Income tax on share-based 
payment transactions
–
–
–
–
–
0.4
0.4
–
0.4
Sale of minority interest in 
subsidiary to Non-controlling 
interest
–
–
–
–
–
2.4
2.4
–
2.4
Dividends to equity holders
8
–
–
–
–
–
(21.7)
(21.7)
–
(21.7)
Total transactions with owners
 – 
 – 
0.9
 – 
 – 
(22.0)
(21.1)
 – 
(21.1)
Balance at 29 March 2024
 2.2 
 212.4 
(1.0)
 0.3 
(0.3)
340.2
553.8
 – 
553.8
*	
Please see note 30 for further details
The notes on pages 174 to 213 form part of these consolidated financial statements.
 halfords.annualreport2024.com
171
FINANCIAL 
STATEMENTS 
CONSOLIDATED STATEMENT OF 
CHANGES IN SHAREHOLDERS’ EQUITY

52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
Restated*
£m
Cash flows from operating activities
Profit after tax for the period from continuing operations, before non-underlying items
 32.8 
 37.6 
Non-underlying items
(3.8)
(6.7)
Profit after tax for the period
29.0
 30.9 
Depreciation of property, plant and equipment
 27.1 
 28.2 
Impairment of property, plant and equipment
– 
 1.2 
Amortisation of right-of-use assets
 78.9 
 77.5 
Impairment / (reversal of impairment) of right-of-use assets
2.8
 (2.3) 
Amortisation of intangible assets
 21.2 
 17.9 
Net finance expense
 13.1 
 12.1
Loss on disposal of property, plant and equipment
 0.8 
 1.7 
Gain on disposal of leases
(2.2)
(0.4)
Equity-settled share based payment transactions
 3.8 
 2.4 
Foreign exchange movement
 1.2 
(8.0)
Income tax expense
 9.8 
 8.1 
Decrease / (increase) in inventories
 12.7 
(15.9)
Increase in trade and other receivables
(9.0)
(31.4)
Increase in trade and other payables
 10.7 
 34.5 
Decrease in provisions
(10.3)
(1.2)
Income tax paid 
(11.7)
(4.7)
Net cash from operating activities – continuing operations
 177.9
 150.6 
Net cash (used in)/from operating activities – discontinued operations
(10.5)
 4.2 
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired
(0.6)
(32.6)
Purchase of intangible assets
(23.7)
(25.4)
Purchase of property, plant and equipment
(21.9)
(29.1)
Net cash used in investing activities – continuing operations
(46.2)
(87.1)
Net cash (used in)/from investing activities – discontinued operations
(0.3)
 0.1 
Cash flows from financing activities
Purchase of own shares
(10.2)
(1.5)
Proceeds from share options exercised
 4.2 
 0.4 
Finance costs paid
(2.1)
(2.6)
RCF drawdowns
 1,348.0 
 337.0 
RCF repayments
(1,363.0)
(302.0)
Proceeds from other borrowings
 1.5
–
Repayment of other borrowings
 – 
(1.7)
RCF transaction costs
(1.1)
(1.8)
Interest paid on lease liabilities
(9.0)
(8.8)
Payment of capital element of leases
(83.8)
(80.5)
Payments relating to supplier financing
(70.0)
(23.5)
Receipts relating to supplier financing
 65.9 
 22.7 
Proceeds from sale of share in subsidiary to non-controlling Interest
 2.4 
–
Dividends paid 
(21.7)
(19.5)
Net cash used in financing activities – continuing operations
(138.9)
 (81.8) 
Net cash (used in)/from financing activities – discontinued operations
(0.9)
0.1
Net decrease in cash and bank overdrafts
(18.9)
(13.9)
Cash and cash equivalents at the beginning of the period
 32.2 
 46.1 
Cash and cash equivalents at the end of the period
 13.3 
 32.2 
*	
Please see note 30 for further details
The notes on pages 174 to 213 form part of these consolidated financial statements.
172
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
CONSOLIDATED STATEMENT 
OF CASH FLOWS

Analysis of movements in the Group’s net debt in the period
At 31 March
2023
£m
Cash flow
£m
Other non-
cash changes
£m
At 29 March
2024
£m
Cash and cash equivalents at bank and in hand
 41.9 
(28.6)
 – 
 13.3 
Bank overdrafts
(9.7)
 9.7 
 – 
 – 
Cash and cash equivalents at bank and in hand  
(Consolidated Statement of Cash Flows)
 32.2 
(18.9)
 – 
 13.3 
Debt due in less than one year
 – 
(1.4)
(0.4)
(1.8)
Debt due after one year
(34.0)
 15.0 
(0.6)
(19.6)
Total net debt excluding leases
(1.8)
(5.3)
(1.0)
(8.1)
Current lease liabilities
(77.6)
92.8
(94.3)
(79.1)
Non-current lease liabilities
(269.3)
 – 
41.2
(228.1)
Total leases
(346.9)
92.8
(53.1)
(307.2)
Total net debt
(348.7)
87.5
(54.1)
(315.3)
At 1 April
2022
£m
Cash flow
£m
Other non-
cash changes
£m
At 31 March
2023
£m
Cash and cash equivalents at bank and in hand 
 46.3 
(4.4)
 – 
 41.9 
Bank overdrafts
(0.2)
(9.5)
–
(9.7)
Cash and cash equivalents at bank and in hand  
(Consolidated Statement of Cash Flows)
 46.1 
(13.9)
 – 
 32.2 
Debt due in less than one year
 – 
 – 
Debt due after one year
 – 
(34.0)
–
(34.0)
Total net debt excluding leases
 46.1 
(47.9)
 – 
(1.8)
Current lease liabilities
(74.5)
 89.3 
(92.4)
(77.6)
Non-current lease liabilities
(316.5)
–
 47.2 
(269.3)
Total leases
(391.0)
 89.3 
(45.2)
(346.9)
Total net debt
(344.9)
 41.4 
(45.2)
(348.7)
Other non-cash changes include additions of new leases, modifications to leases, amortisation of debt costs, foreign exchange movements, 
and changes in classifications between amounts due within and after one year.
Cash and cash equivalents at the period end consist of £13.3m (2023: £41.9m) of liquid assets offset by £nil (2023: £9.7m) bank overdrafts.
£0.9m (2023: £3.1m) of the Group’s cash and cash equivalents balance is held in the Halfords Here to Help Fund and Employee Benefit Trust. 
These funds are not available to utilise within the Group on demand.
The movement in Inventories and Trade and other payables differ between the Consolidated Statement of Financial Position and Consolidated 
Statement of Cash flows. This difference is predominately as a result of foreign currency and the removal of balances relating to discontinued 
operations as noted in note 10.
NOTES TO CONSOLIDATED  
STATEMENT OF CASH FLOWS
 halfords.annualreport2024.com
173
FINANCIAL 
STATEMENTS 

General information
Halfords Group plc is a public limited company, which is listed on the London Stock Exchange, incorporated in England and Wales, and 
domiciled in the UK. The address of the registered office is Icknield Street Drive, Washford West, Redditch, Worcestershire B98 0DE. 
The consolidated financial statements of the Company as at, and for, the period ended 29 March 2024, comprise the Company and its 
subsidiary undertakings.
Statement of compliance
The consolidated financial statements have been prepared in accordance with international accounting standards in conformity with the 
requirements of the Companies Act 2006 and in accordance with UK-adopted international accounting standards.
Basis of preparation
The consolidated financial statements of Halfords Group plc and its subsidiary undertakings (together the “Group”) are prepared on a going 
concern basis for the reasons set out below, and under the historical cost convention, except where adopted IFRSs require an alternative 
treatment. The principal variations relate to financial instruments (IFRS 9 “Financial instruments”), acquisition of business combinations (IFRS 3 
“Business Combinations”), share-based payments (IFRS 2 “Share-based payment”) and leases (IFRS 16 “Leases”).
The financial statements are presented in millions of pounds sterling, rounded to the nearest £0.1m.
The accounts of the Group are prepared for the period up to the Friday closest to 31 March each year. Consequently, the financial statements 
for the current period cover the 52 weeks to 29 March 2024, whilst the comparative period covered the 52 weeks to 31 March 2023.
Going concern
In determining the appropriate basis of preparation of the financial statements for the period ended 29 March 2024, the Directors are required 
to consider whether the Group and Company can continue in operational existence for the foreseeable future. The Board has concluded that it 
is appropriate to adopt the going concern basis, having undertaken a rigorous assessment of financial forecasts, which included consideration 
of the current economic climate, and with specific consideration to the trading position of the Group. The financial forecasts have been stress 
tested and management believe the level at which sales would need to drop to trigger any concern with cash flow or banking covenants is highly 
unlikely.
The Group has a committed £180.0m revolving credit facility, of which £20.0m is designated as an overdraft facility, at the date of approval of 
these financial statements, expiring on 16 April 2028.
The Board has a reasonable expectation that the Group and the Company will be able to continue in operation and meet its liabilities as 
they fall due and will retain sufficient available cash and not breach any covenants under any drawn facilities over the remaining term of the 
current facilities. The Board does not consider there to be a material uncertainty around the Group’s or the Company’s ability to continue as a 
going concern.
Basis of consolidation
Subsidiary undertakings
A subsidiary investment is an entity controlled by Halfords. Control is achieved when Halfords is exposed, or has rights to, variable returns from 
its involvement with the investee and can affect those returns through its power, directly or indirectly, over the investee.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. 
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred, in which case an 
appropriate adjustment would be made.
The financial statements of all subsidiary undertakings are prepared to the same reporting date as the Company. All subsidiary undertakings 
have been consolidated.
The subsidiary undertakings of the Company at 29 March 2024 are detailed in Note 4 to the Company balance sheet on page 217.
Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the 
fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for 
control of the acquiree. Acquisition-related costs are recognised as expenses in the period in which the costs are incurred.
The identifiable assets, liabilities and contingent liabilities of the acquired entity that meet the conditions for recognition under IFRS 3 “Business 
combinations” are recognised at their fair value at the acquisition date.
Goodwill arising on acquisition is recognised as an asset and is, initially, measured at cost, being the excess of the cost of the business 
combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after 
reassessment, the Group’s interest in the net fair value of these elements exceeds the cost of the business combination, the excess is 
recognised immediately in the income statement.
174
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ACCOUNTING 
POLICIES

Revenue recognition
The Group recognises revenue when it has satisfied its performance obligations to external customers and the customer has obtained control 
of the goods or services being transferred.
The revenue recognised is measured at the transaction price received and is recognised net of value added tax, discounts, and commission 
charged by third parties for providing credit to customers.
The Group operations comprise the retailing of automotive, leisure and cycling products, vehicle servicing and repair operations and the 
provision of software as a service. The table below summarises the revenue recognition policies for different categories of products and 
services offered by the Group.
For most revenue streams, there is a low level of judgement applied in determining the transaction price or the timing of transfer of control.
Products and services
Nature, timing and satisfaction of performance obligations and significant payment terms
Automotive, leisure 
and cycling products, 
car servicing and 
repair operations
The majority (both value and volume) of the Group’s sales are for stand-alone products and services made 
direct to customers at standard prices, either in store or online. In these cases, all performance obligations are 
satisfied, and revenue recognised, when the product or service is transferred to the customer.
In the case of Cycle2Work, a letter of collection (“LOC”) is issued when payment is received but the balance will 
be held on the Balance Sheet until the product or service has been transferred to the customer, at which point 
revenue is recognised. Deferred income of unredeemed vouchers is released based on historic redemption 
rates. A LOC can also be redeemed by customers through a network of independent bike dealers, who invoice 
the Group for the value of the LOC, at which point the revenue is recognised.
Service and 
repair plans
The Group offers various service and repair plans to customers. The Group recognises revenue on these 
on a straight-line basis over the period of the plan and any discounts at the point of sale. The performance 
obligation of the Group, being the level of service and repair offered with the plan, will be the period of the plan 
and, therefore, revenue should be recognised over this period. The product is paid for on commencement of the 
plan, and deferred income is held within trade and other payables.
Loyalty scheme
The Group launched its Loyalty Scheme in March 2022, with paid membership revenue being recognised when 
the individual benefits associated with club membership are expected to be incurred. The revenue associated 
with any unused benefits is recognised at the end of the membership period.
Product warranties
Certain products, principally motoring and cycling, have a warranty period attached, which is built into the price 
of the product rather than being sold separately as an incremental purchase. The warranty element has been 
identified as a separate performance obligation to the sale of the product, and, given it is not sold separately, 
a transaction price has been allocated for the warranty element based on the expected cost approach. 
This element of revenue is recognised on a straight-line basis over the period of the plan. The performance 
obligation of the Group, being the rectification of faults on products sold, will be the period over which the 
customer can exercise their rights under the warranty and, therefore, revenue should be recognised over this 
period. The full price of the product is paid for on commencement of the warranty, and deferred income is held 
within trade and other payables.
Software-as-a-
Service (SaaS)
The Group operates a Software-as-a-Service business, which provides customers with access to a bespoke 
version of our mobile scheduling and operations software. The model employed consists of an upfront 
development fee, with ongoing licence fees depending on usage of the software by the customer, with minimum 
licence fee levels agreed over the term of the contract. The upfront development services cannot be unbundled 
from the ongoing hosting and service obligations under the contract and, therefore, the upfront development 
fee and minimum licence fee payable is recognised evenly over the life of the contract, with any licence fees 
receivable above the minimum level recognised in the period to which they relate.
In the prior period the Group entered into a 3rd party logistics agreement for the storage and distribution of tyres to the Group’s garages. The 
Group may from time to time sell tyres stored at the 3rd party to the 3rd party at an arm’s length price, and revenue is recognised for these sales 
on the transfer of title of the tyres. The Group has also entered into a separate wholesale agreement with this 3rd party for the purchase of tyres 
when required.
 halfords.annualreport2024.com
175
FINANCIAL 
STATEMENTS 

Returns
A provision for estimated returns is made based on the value of goods sold during the period, that are expected to be returned and refunded 
after the period end based on past experience.
The sales value of the expected returns is recognised within provisions, with the cost value of goods expected to be returned recognised as a 
current asset within inventories.
Gift cards
Deferred income in relation to gift card redemptions is estimated based on historical returns and redemption rates.
Supplier income
As is common in the retail and automotive industries, the Group receives income from their suppliers based on specific agreements in place. 
These enable the Group to share the costs and benefits of promotional activity and volume growth, which are explained below. The supplier 
income received is recognised as a deduction from cost of sales based on the entitlement that has been earned up to the balance sheet date 
for each relevant supplier agreement. The Group receives other contributions that do not meet the definition of supplier income, including, but 
not limited to, marketing, advertising and promotion contributions that are offset against the costs included in administrative expenses to which 
they relate.
Supplier income arrangements are often not co-terminus with the Group’s financial period end. Such income is only recognised when there is 
reasonable certainty that the conditions for recognition have been met by the Group and the income can be reliably measured based on the 
terms of the contract. The Group is sometimes required to estimate the amounts due from suppliers at period end. However, as most of the 
supplier income is confirmed before the period end, the level of estimation and judgement required is limited.
Supplier income is recognised on an accrual basis, based on the entitlement that has been earned up to the balance sheet date for each 
relevant supplier contract. The accrued supplier income is included in Accrued income within Trade and other receivables.
Supplier income comprises:
•	 Rebates – typically, these are based on the volume of purchases of goods for resale. These are earned based on purchase targets over set 
periods of time. In some cases, rebates will also be received to support promotional pricing.
•	 Fixed contributions – typically, these will be for cost-price discounts or for favourable positioning of products in store.
Supplier income recognised is recorded against cost of sales and inventory, which is adjusted to reflect the lower purchase cost for the goods 
on which the income has been earned. Depending on the agreement with the supplier, supplier income is either received in cash from the 
supplier or netted off payments made to suppliers.
Finance income
Finance income comprises interest income on funds invested. Income is recognised, as it accrues in profit or loss, using the effective interest 
rate method.
Non-underlying items
Non-underlying items are those items that are unusual because of their size, nature (one-off, non-trading costs) or incidence, or relate to 
significant strategic projects. The Group’s management considers that these items should be separately identified within their relevant income 
statement category to enable a full understanding of the Group’s results.
Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss 
attributable to ordinary shareholders of the Company, which excludes non-controlling interests, by the weighted average number of ordinary 
shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to 
ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all 
dilutive potential ordinary shares, which comprise share options granted to employees.
Foreign currency translation
Functional and presentation currency
The consolidated financial statements are presented in pounds sterling, which is the Group’s presentation currency, and are rounded to the 
nearest £0.1m. Items included in the financial statements of the Group’s entities are measured in pounds sterling, which is the currency of the 
primary economic environment in which the entity operates (the functional currency).
Transactions and balances
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. At each balance sheet date, 
monetary assets and liabilities denominated in foreign currencies are retranslated at the exchange rate prevailing at the balance sheet date. 
Translation differences on monetary items are taken to the income statement with the exception of differences on transactions that are subject 
to effective cash flow hedges, which are recognised in other comprehensive income.
176
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ACCOUNTING 
POLICIES

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated at the exchange rate 
at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in profit or loss, except for 
differences arising on qualifying cash flow hedges, which are recognised in other comprehensive income.
The assets and liabilities of foreign operations are translated to sterling at the exchange rate at the reporting date. The income and expenses of 
foreign operations are translated to sterling at an average exchange rate. Foreign currency differences are recognised in other comprehensive 
income and a separate component of equity. When a foreign operation is disposed of, the relevant amount in equity is transferred to profit 
or loss.
Employee benefits
i) Pensions
The Halfords Pension Plan is a contract-based plan, where each member has their own individual pension policy, which they monitor 
independently. The Group pays fixed contributions and has no legal or constructive obligation to pay further amounts. The costs of contributions 
to the scheme are charged to the income statement in the period that they arise.
ii) Share-based payment transactions
The Group operates a number of equity-settled share-based compensation plans.
The fair value of the employee services received under such schemes is recognised as an expense in the income statement. Fair values are 
determined by use of an appropriate pricing model and incorporate an assessment of relevant market performance conditions.
The amount to be expensed over the vesting period is adjusted to reflect the number of awards for which the related service and non-market 
vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that 
meet the related service and non-market performance conditions at the vesting date.
At each balance sheet date, the Group revises its estimates of the number of share incentives that are expected to vest. The impact of the 
revision of original estimates, if any, is recognised in the income statement, with a corresponding adjustment to equity.
Taxation
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it 
relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively 
enacted, at the reporting date, and any adjustment to tax payable in respect of previous years.
The tax base of an asset is the amount that will be deductible for tax purposes against any taxable economic benefits that will flow to an entity 
when it recovers the carrying amount of the asset. If those economic benefits will not be taxable, the tax base of the asset is equal to its carrying 
amount.
The tax base of a liability is its carrying amount, less any amount that will be deductible for tax purposes in respect of that liability in future 
periods. In the case of revenue that is received in advance, the tax base of the resulting liability is its carrying amount, less any amount of the 
revenue that will not be taxable in future periods.
Deferred taxation is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities 
and their carrying amounts in the consolidated financial statements. However, if the deferred taxation arises from initial recognition of an asset 
or liability in a transaction other than a business combination, which, at the time of the transaction, affects neither accounting nor taxable profit 
or loss, it is not accounted for. Deferred taxation is calculated using rates that are expected to apply when the related deferred asset is realised, 
or the deferred taxation liability is settled.
Deferred taxation assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary 
differences can be utilised.
Discontinued operations
Discontinued operations are reported when a component of the Group that represents a separate major line of business or geographical area 
of operation has been disposed of, or when a sale is highly probable; its operations and cash flows can be clearly distinguished, operationally 
and for financial reporting purposes, from the rest of the Group and is classified as held for sale or has been disposed of. The Group classifies 
a non-current asset or disposal group as held for sale if its carrying value will be recovered through a sales transaction or distribution to 
shareholders rather than continuing use. In the Consolidated Income Statement, discontinued operations are excluded from the results of 
continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations. Corresponding notes to the 
Consolidated Income Statement exclude amounts for discontinued operations, unless stated otherwise.
Dividends
Final dividends are recognised in the Group’s financial statements in the period in which the dividends are approved by shareholders. Interim 
equity dividends are recognised in the period they are paid.
 halfords.annualreport2024.com
177
FINANCIAL 
STATEMENTS 

Intangible assets
i) Goodwill
Goodwill is initially recognised as an asset at cost and is reviewed for impairment at least annually. Goodwill is subsequently measured at cost 
less any accumulated impairment losses. An impairment charge is recognised in profit or loss for any amount by which the carrying value of 
goodwill exceeds its recoverable amount.
For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the 
synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently 
when there is an indication that the unit may be impaired.
For acquisitions prior to 3 April 2010, costs directly attributable to business combinations formed part of the consideration payable when 
calculating goodwill. Adjustments to contingent consideration, and, therefore, the consideration payable and goodwill, are made at each 
reporting date until the consideration is finally determined.
Acquisitions after this date fall under the provisions of “Revised IFRS 3 Business Combinations (2008)”. For these acquisitions, transaction costs, 
other than share and debt issue costs, will be expensed as incurred and subsequent adjustments to the fair value of contingent consideration 
payable will be recognised in profit or loss.
ii) Computer software
Costs that are directly associated with identifiable and unique software products controlled by the Group, and that will generate economic 
benefits beyond one year, are recognised as intangible assets. These intangible assets are stated at cost less accumulated amortisation and 
impairment losses. Software is amortised over three-to-five years, depending on the estimated useful economic life.
Where the Group controls software relating to Software as a Service (“SaaS”) arrangements, configuration and customisation costs are 
capitalised as part of bringing the identified intangible asset into use. Where the Group does not have control of the software costs, these are 
expensed over the SaaS contract term if the related configuration and customisation costs are not distinct from access to the software.
In all other circumstances, configuration and customisation costs are recognised as an expense as incurred except in the limited instances 
where these costs result in a separately identifiable intangible asset.
iii) Acquired intangible assets
Intangible assets that are acquired as a result of a business combination are recorded at fair value at the acquisition date.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from 
the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits 
embodied in the asset. The estimated useful lives for the current and comparative periods are as follows:
•	 Brand names and trademarks – 10 years;
•	 Supplier relationships – 5 to 15 years; and
•	 Customer relationships – 5 to 15 years.
Property, plant and equipment
Property, plant and equipment is held at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation of property, plant and equipment is provided to write off the cost, less residual value, on a straight-line basis over their useful 
economic lives as follows:
•	 Freehold properties are depreciated over 50 years;
•	 Leasehold premises with lease terms of 50 years or less are depreciated over the remaining period of the lease;
•	 Leasehold improvements are depreciated over the period of the lease to a maximum of 25 years;
•	 Motor vehicles are depreciated over 3 years;
•	 Fixtures, fittings and equipment are depreciated over 4 to 10 years according to the estimated life of the asset;
•	 Computer equipment is depreciated over 3 years; and
•	 Land is not depreciated.
Depreciation is expensed to the income statement within operating expenses.
Residual values, remaining useful economic lives, and depreciation periods and methods are reviewed annually and adjusted if appropriate.
178
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ACCOUNTING 
POLICIES

Impairment of assets
Tangible and intangible assets that are subject to amortisation and depreciation are reviewed for impairment whenever events or changes in 
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s 
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in 
use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows 
(cash-generating units). Property, plant and equipment relating to Retail stores or for Autocentres locations are grouped on an individual basis.
Leases
The Group initially applied IFRS 16 at 30 March 2019, using the modified retrospective approach. Under this approach, comparative information 
is not restated and the cumulative effect of applying IFRS 16 is recognised in Retained Earnings at the date of initial application.
As lessee
The Group leases various offices, warehouses, retail stores, car servicing garages, equipment and vehicles. Rental contracts are typically made 
for fixed periods between 3 months and 25 years, but may have break clauses or extension options.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease 
components based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, it has elected not to 
separate lease and non-lease components and, instead, accounts for these as a single lease component.
At the commencement date of property leases, the Group determines the lease term to be the full term of the lease, assuming that any option to 
break or extend the lease is unlikely to be exercised. Leases are regularly reviewed on an individual basis and will be revalued if it becomes likely 
that a break clause or option to extend the lease is exercised.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the 
following lease payments:
•	 Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
•	 Variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date;
•	 Amounts expected to be payable by the Group under residual value guarantees;
•	 The exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
•	 Payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease 
payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for 
leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the 
funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and 
conditions.
To determine the incremental borrowing rate, the Group:
•	 Where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing 
conditions since third party financing was received;
•	 Uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Group; and
•	 Makes adjustments specific to the lease, for example location, type of property.
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease 
liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and 
adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit 
or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
•	 The amount of the initial measurement of lease liability;
•	 Any lease payments made at or before the commencement date less any lease incentives received;
•	 Any initial direct costs; and
•	 Restoration costs.
For leases acquired as part of a business combination, the lease liability is measured at the present value of the remaining lease payments. The 
right-of-use asset is measured at the same amount as the lease liability adjusted to reflect favourable or unfavourable terms of the lease when 
compared to market terms.
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FINANCIAL 
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Subsequent to initial measurement, lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are 
reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease, or over the 
remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.
When the Group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or 
termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term. 
The carrying value of lease liabilities is, similarly, revised when the variable element of future lease payments dependent on a rate or index is 
revised. In both cases, an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being 
amortised over the remaining (revised) lease term. If the carrying value of the right-of-use asset is adjusted to zero, any further reduction is 
recognised in profit or loss.
The right-of-use assets are considered for impairment at each reporting date; see Note 14.
When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification:
•	 If the renegotiation results in one or more additional assets being leased for an amount commensurate with the standalone price for the 
additional rights-of-use obtained, the modification is accounted for as a separate lease in accordance with the above policy.
•	 In all other cases where the renegotiation increases the scope of the lease (whether that is an extension to the lease term, or one or more 
additional assets being leased), the lease liability is remeasured using the discount rate applicable on the modification date, with the right-of-
use asset being adjusted by the same amount.
•	 If the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the lease liability and right-of-use asset are 
reduced by the same proportion to reflect the partial or full termination of the lease with any difference recognised in profit or loss. The 
lease liability is then further adjusted to ensure its carrying amount reflects the amount of the renegotiated payments over the renegotiated 
term, with the modified lease payments discounted at the rate applicable on the modification date. The right-of-use asset is adjusted by the 
same amount.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets (<£5,000) are recognised on a 
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets 
comprise warehousing, IT and telephone equipment.
As lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating 
leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit 
or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount 
of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the 
period in which they are earned.
When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sublease is classified 
as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the weighted average cost principle 
and includes purchase costs, adjusted for rebates and other costs incurred in bringing them to their existing location.
Where inventory is held by third parties but for which Halfords exercises control over the inventory, Halfords recognises the value of that 
inventory on its balance sheet. Control is determined by Halfords retaining the title to the inventory and restricting its use by the third party.
Supplier financing
Where Halfords operates invoicing arrangements with third-party suppliers, whereby the timing of receipts from a supplier creates a cash flow 
timing advantage at periods during the year for Halfords, such arrangements are considered akin to a supplier financing arrangement. The cash 
flows paid and received under the arrangement are separately disclosed as supplier financing in the cash flow statement. The amount due to or 
from the supplier at the year-end date is shown in other payables or other receivables as appropriate.
Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, 
and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the 
expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the 
liability. The unwinding of the discount is recognised as a finance cost.
Details of the provisions recognised can be seen in Note 20.
Where the Group expects a provision to be reimbursed, the reimbursement is recognised as a separate asset when the reimbursement 
is certain.
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HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ACCOUNTING 
POLICIES

A dilapidation provision is recognised when there is future obligation relating to the maintenance of leasehold properties. The provision is based 
on management’s best estimate of the obligation, which forms part of the Group’s unavoidable cost of meeting its obligations under the lease 
contracts. Key uncertainties are estimates of amounts due.
Provisions for employer and product liability claims are recognised when an incident occurs or when a claim made against the Group is received 
that could lead to there being an outflow of benefits from the Group. The provision is based on management’s best estimate of the settlement 
assisted by an external third party. The main uncertainty is the likelihood of success of the claimant and hence the pay-out; however, a provision 
is only recognised when there is considered to be reasonable grounds for the claim.
Cash and cash equivalents
Cash and cash equivalents on the Consolidated Statement of Financial Position comprise cash at bank and in hand and short-term deposits 
with original maturities of less than 90 days, which are subject to an insignificant risk of changes in value. In the Consolidated Statement of Cash 
Flows, net cash and cash equivalents comprise cash and cash equivalents, as defined above, net of bank overdrafts.
Non-controlling interests
For business combinations the Group has the choice, on a transaction by transaction basis, to initially recognise any non-controlling interest 
in the acquiree that is a present ownership interest and entitles its holders to a proportionate share of the entity’s net assets in the event of 
liquidation at either acquisition date fair value or, at the present ownership instruments’ proportionate share in the recognised amounts of the 
acquiree’s identifiable net assets.
The total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to the non-controlling interests 
in proportion to their relative ownership interests. Before this date, unfunded losses in such subsidiaries were attributed entirely to the Group. 
In accordance with the transitional requirements of IAS 27 (2008), the carrying value of non-controlling interests at the effective date of the 
amendment has not been restated.
Financial instruments
i) Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when 
the Group becomes a party to the contractual provisions of the instrument.
On initial recognition, a financial asset is measured at: amortised cost; Fair Value through Other Comprehensive Income (FVOCI) – equity 
instrument; or Fair Value through Profit or Loss (FVTPL). A financial liability is measured at either amortised costs or FVTPL.
ii) Classification and subsequent measurement
Financial assets
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial 
assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the 
business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
•	 It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
•	 Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount 
outstanding.
On initial recognition of an equity instrument that is not held for trading, the Group may, irrevocably, elect to present subsequent changes in the 
investment’s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets not measured at amortised cost or FVOCI, as described above, are measured at FVTPL. This includes all derivative financial 
assets (Note 22). On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be 
measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates, or significantly reduces, an accounting mismatch that would 
otherwise arise.
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181
FINANCIAL 
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Financial assets: Business model assessment
The Group assesses the objective of the business model in which financial assets are held at a CGU level, because this best reflects the way the 
business is managed and information is provided to management. The information considered includes:
•	 The stated policies and objectives for the business unit and the operation of those policies in practice. This includes whether management’s 
strategy focuses on earning contractual interest income, maintaining a particular interest rate portfolio, matching the duration of the financial 
assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets;
•	 How the performance of the business unit is evaluated and reported to Group’s management;
•	 The risks that affect the performance of the business model (and the financial assets held within that business unit) and how those risks are 
managed; and
•	 The frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales 
activity. 
 
Financial assets that are held for trading or are managed, and whose performance is evaluated on a fair value basis, are measured at FVTPL.
Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, “principal” is defined as the fair value of the financial asset on initial recognition. “Interest” is defined as 
consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period and 
for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.
In assessing whether contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of 
the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of 
contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers:
•	 Contingent events that would change the amount or timing of cash flows;
•	 Terms that may adjust the contractual coupon rate, including variable rate features;
•	 Prepayment and extension features; and
•	 Terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).
Financial assets: Measurement and gains and losses
Financial assets 
at FVTPL
These assets are, subsequently, measured at fair value. Net gains and losses, including any interest or dividend 
income, are recognised in profit and loss. However, see Note 22 for derivatives designated as hedging 
instruments.
Financial assets at 
amortised cost
These assets are, subsequently, measured at amortised cost using the effective interest method. The 
amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and 
impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Equity investments 
at FVOCI
These assets are, subsequently, measured at fair value. Dividends are recognised as income in profit or loss 
unless the dividend clearly represents a recovery of part of the cost of investment. Other net gains and losses 
are recognised in OCI and never reclassified to profit or loss.
Financial liabilities: Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held for 
trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and 
losses, including any interest expense, are recognised in profit and loss. All other financial liabilities are recognised, initially, at their fair value and 
are, subsequently, measured at amortised cost using the effective interest method.
iii) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights 
to receive the contractual cash flows in a transaction in which, substantially, all of the risks and rewards of ownership of the financial asset are 
transferred or in which the Group neither transfers nor retains, substantially, all of the risks and rewards of ownership and it does not retain 
control of the financial asset.
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HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ACCOUNTING 
POLICIES

Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. The Group also derecognises 
a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new liability 
based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-
cash assets transferred or liabilities assumed) is recognised in profit or loss.
iv) Offsetting
Financial assets and financial liabilities are offset and the net position presented in the statement of financial position when, and only when, the 
Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset 
and settle the liability simultaneously.
v) Derivatives
Derivative financial instruments are used to manage risks arising from changes in foreign currency exchange rates relating to the purchase 
of overseas sourced products. The Group does not hold or issue derivative financial instruments for trading purposes. The Group uses the 
derivatives to hedge highly probable forecast transactions and, therefore, the instruments are largely designated as cash flow hedges.
Derivatives are initially recognised at fair value on the date a contract is entered into and are subsequently remeasured at their fair value.
At inception of designated hedging relationships, the Group documents the risk management objective and strategy for undertaking the hedge. 
The Group also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in 
the cash flows of the hedged item and hedging instrument are expected to offset each other.
The effective element of any gain or loss from remeasuring the derivative instrument is recognised in Other Comprehensive Income (“OCI”) 
and accumulated in the hedging reserve. Any element of the remeasurement of the derivative instrument that does not meet the criteria for an 
effective hedge is recognised immediately in the Group Income Statement within finance income or cost of sales.
When the hedged forecast transaction subsequently results in the recognition of a non-financial item, such as inventory, the amount 
accumulated in the hedging reserve is included directly in the initial cost of the non-financial item when it is recognised.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss 
existing in other comprehensive income at that time remains in OCI and is recognised when the forecast transaction is ultimately recognised 
in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in OCI is 
recognised immediately in profit or loss.
The full fair value of a hedging derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is more than 
12 months or, as a current asset or liability, if the remaining maturity of the hedged item is less than 12 months.
vi) Impairment
The Group recognises loss allowances for expected credit losses (“ECLs”) on trade receivables, contract assets and lease receivables 
measured at amortised cost. This includes the Parent Company receivables. These are always measured at an amount equal to lifetime ECL. The 
maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. There is 
limited exposure to ECLs due to the business model.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition, and when estimating ECL, 
the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both 
qualitative and quantitative information and analysis, based on the Group’s historical experience and informed credit assessment and forward-
looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Group considers a 
financial asset to be in default when the financial asset is more than 90 days past due.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. 
This is generally the case when the Group determines that the debtor does not have the assets or sources of income that could generate 
sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to 
enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.
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183
FINANCIAL 
STATEMENTS 

Estimates and judgements
The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect 
the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are 
based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form 
the basis of making judgements about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results 
may differ from the estimates.
Estimates are monetary amounts in the financial statements that are subject to measurement uncertainty and judgements are decisions taken 
by management on accounting measurements and recognition criteria.
Management considers that their use of estimates and judgements in the application of the Group’s accounting policies are inherently linked 
and so are discussed together below. Significant sources of estimation uncertainty and judgement are identified separately. 
The judgements and key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements 
are detailed below:
Allowances against the carrying value of inventories
The Group reviews the market value of and demand for its inventories on a periodic basis to ensure that recorded inventory is stated at the lower 
of cost and net realisable value. In assessing the ultimate realisation of inventories, the Group is required to make estimates regarding future 
demand and to compare these with the current or committed inventory. Estimates have also been made relating to the timing and success 
of product ranges, which would impact estimated demand and selling prices. Details of provisions recognised against inventory is provide in 
note 15.
Lease terms and incremental borrowing rate
Under IFRS 16, the Group recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing 
its obligation to make lease payments. The lease liability is initially measured at the present value of the remaining lease payments, discounted 
using the Group’s incremental borrowing rate, adjusted to take into account the risk associated with the length of the lease, which ranges 
between 1 and 25 years, and the location of the lease. The Group has, therefore, made an estimate in determining the incremental borrowing 
rate used. The weighted average incremental borrowing rate in FY24 was 2.76%. Halfords reviews the incremental borrowing rate against the 
property yields to ensure the rates move appropriately against the weighted average reference rate for UK properties and concluded the rates 
appear reasonable.
In determining lease terms, management considers all facts and circumstances that create an economic incentive to exercise an extension 
option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the 
lease is reasonably certain to be extended (or not terminated).
For leases of warehouses, retail stores, autocentres and equipment, the following factors are normally the most relevant:
•	 Review of profitability of each store and garage;
•	 If there are significant penalties to terminate (or not extend), the Group is, typically, reasonably certain to extend (or not terminate); and
•	 If any leasehold improvements are expected to have a significant remaining value, the Group is, typically, reasonably certain to extend (or 
not terminate).
Otherwise, the Group considers other factors including historical lease durations and the costs and business disruption required to replace the 
leased asset. Most extension options in vehicle leases have not been included in the lease liability, because the Group could replace the assets 
without significant cost or business disruption.
184
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ACCOUNTING 
POLICIES

Other key estimates and judgements
The following are other key estimates and judgements that do not have a significant risk of material impact on the following financial year but 
management still consider to be key estimates and judgements:
Impairment of assets within Retail and Autocentres
The impairment testing process requires management to make significant estimates regarding the future cash flows expected to be generated 
by CGUs to which goodwill has been allocated. In assessing value-in-use, net cash flow forecasts are extrapolated using long-term growth rates 
to determine the basis for an annuity-based terminal value. These net cash flow forecasts reflect assumptions relating to sales and cost growth 
in addition to other cash flow movements including income tax. Future cash flows, including the terminal value, are discounted to their present 
value using a post-tax discount rate that reflects current market assessments of the time value of money. The estimates of future cash flows 
exclude cash inflows or outflows attributable to financing activities. Management periodically evaluates and updates the estimates based on 
the conditions which influence these variables. The assumptions and conditions for determining impairments of goodwill reflect management’s 
best assumptions and estimates, but these items involve inherent uncertainties described above. As a result, the accounting for such items 
could result in different estimates or amounts if management used different assumptions or if different conditions occur in future accounting 
periods. A detailed discussion of the impairment methodology applied, key assumptions used and related sensitivity analyses by the Group in 
the context of goodwill is provided in note 12.
Adoption of new and revised standards
The Group has applied the following interpretations and amendments for the first time in these financial statements:
•	 Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2;
•	 Definition of Accounting Estimates – Amendments to IAS 8; and
•	 Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12.
The application of these new interpretations and amendments did not have a material impact on the financial statements.
New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not yet effective and have not been adopted by the 
Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable 
future transactions.
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185
FINANCIAL 
STATEMENTS 

1. Operating segments
The Group has two reportable segments, Retail and Autocentres, which are the Group’s strategic business units. The strategic business 
units offer different products and services, and are managed separately because they require different operational, technological and 
marketing strategies.
The operations of the Retail reporting segment comprise the retailing of automotive, leisure and cycling products and services through retail 
stores and online. The operations of the Autocentres reporting segment comprise vehicle servicing and repair performed from garages and 
vans, along with the operations of Avayler Software-as-a-Service products to both internal and external customers.
The Chief Operating Decision Maker is the Executive Directors. Internal management reports for each of the segments are reviewed by the 
Executive Directors on a monthly basis. Key measures used to evaluate performance are Revenue and Operating Profit. Management believe 
that these measures are the most relevant in evaluating the performance of the segment and for making resource allocation decisions. 
The following summary describes the operations in each of the Group’s reportable segments. Performance is measured based on segment 
operating profit, as included in the management reports that are reviewed by the Executive Directors. These internal reports are prepared in 
accordance with IFRS accounting policies consistent with these Group Consolidated Financial Statements. 
All material operations of the reportable segments are carried out in the UK and Republic of Ireland and all material non-current assets are 
located in the UK. The Group’s revenue is driven by the consolidation of individual small value transactions and as a result Group revenue is not 
reliant on a major customer or group of customers.
Income statement – continuing operations
Retail 
£m
Autocentres
£m
52 weeks to 
29 March
2024
Total
£m
Revenue
 997.1 
 699.4 
 1,696.5 
Segment result before non-underlying items
 41.1 
 20.8 
 61.9 
Non-underlying items
(1.5)
(2.8)
(4.3)
Segment result 
 39.6 
 18.0 
 57.6
Unallocated expenses1
(5.7)
Operating profit
 51.9
Finance costs
(13.1)
Profit before tax
 38.8 
Taxation
(9.8)
Profit after tax from continuing operations
 29.0
Products and services transferred at a point in time
 926.40 
 689.8 
 1,616.2 
Products and services transferred over time
 70.7 
 9.6
 80.3
Revenue
 997.1 
 699.4 
 1,696.5 
Income statement – continuing operations
Retail 
£m
Autocentres
£m
52 weeks to 
29 March
2023
Total
£m
Revenue
 977.9 
 594.8 
 1,572.7
Segment result before non-underlying items
 58.6 
 5.7 
 64.3 
Non-underlying items
(0.7)
(7.1)
(7.8)
Segment result 
 57.9 
(1.4)
 56.5 
Unallocated expenses1
(5.4)
Operating profit
 51.1 
Finance costs
(12.1)
Profit before tax
 39.0 
Taxation
(8.1)
Profit after tax from continuing operations
30.9
Products and services transferred at a point in time
 914.0 
560.3
1,474.3
Products and services transferred over time
 63.9 
 34.5 
 98.4 
Revenue
977.9
594.8
1,572.7
1	
Unallocated expenses have been disclosed to reflect the format of the internal management reports reviewed by the Chief Operating Decision Maker and include an amortisation 
charge of £5.7m in respect of assets acquired through business combinations (2023: £5.4m).
186
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

1. Operating segments continued
Other segment items:
Retail 
£m
Autocentres
£m
52 weeks to 
29 March
2024
Total
£m
Capital expenditure
 22.8 
 20.9 
43.7
Depreciation and impairment charge
 14.4 
12.0
26.4
Impairment of right-of-use asset
(0.6)
3.4
2.8
Amortisation of right-of-use asset
 54.1 
23.6
77.7
Amortisation expense
13.6
 3.8 
17.4
Other segment items:
Retail 
£m
Autocentres
£m
52 weeks to 
31 March
2023
Total
£m
Capital expenditure
 26.6 
 21.5 
 48.1 
Depreciation and impairment expense
 17.2 
 11.3
28.5
Impairment of right-of-use asset
(2.3)
 – 
(2.3)
Amortisation of right-of-use asset
 53.0 
22.5
75.5
Amortisation expense
11.8
 2.4 
14.2
There have been no significant transactions between segments in the 52 weeks ended 29 March 2024 (2023: £nil).
2. Operating expenses
For the period from continuing operations
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Selling and distribution costs
615.9
 578.7
Administrative expenses, before non-underlying items
150.5
131.1
Non-underlying administrative expenses (See note 5)
 4.3
7.8
Administrative expenses
154.8
138.9
Operating expenses
770.7
717.6
 halfords.annualreport2024.com
187
FINANCIAL 
STATEMENTS 

3. Operating profit
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
Restated*
£m
Operating profit is arrived at after charging/(crediting) the following:
Expenses relating to leases of low-value assets, excluding short-term lease of low-value assets
 0.3
 2.0 
Expenses relating to short term leases
6.4 
 4.8 
Landlord surrender premiums
 – 
(1.0)
Loss on disposal of property, plant and equipment, and intangibles
 0.8 
 1.7 
Amortisation of intangible assets
 21.2 
 17.9 
Amortisation of right-of-use assets
 79.7
 77.5 
Depreciation of owned property, plant and equipment
 27.2 
 28.1 
Impairment of:
– owned property, plant and equipment
0.5
 1.2 
– right-of-use assets
2.8 
(2.3)
Trade receivables impairment
 (0.1) 
(0.3)
Staff costs (see note 4)
 387.5 
 351.7 
Cost of inventories consumed in cost of sales
 648.5
 662.9
The total fees payable by the Group to BDO LLP and their associates during the period was £2.0m (2023: £1.7m), in respect of the services 
detailed below:
For the period
52 weeks to
29 March
2024
£’000
52 weeks to
31 March
2023
£’000
Fees payable to BDO LLP and their associates for the audit of the Company’s accounts
 70.0
65.0
Fees payable to BDO LLP and their associates for other services:
The audit of the Company’s subsidiary undertakings, pursuant to legislation
 1,680.0
 1,398.0 
Audit-related assurance services
 230.0 
 235.0 
Other 
 6.0 
 – 
 1,986.0 
 1,698.0 
4. Staff costs
For the period, from continuing operations
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
The aggregated remuneration of all employees including Directors comprised:
Wages and salaries
351.6
319.5
Redundancies included in non-underlying items
1.8
1.9
Social security costs
31.0
25.2
Equity settled share-based payment transactions (note 24)
3.8
2.4
Contributions to defined contribution plans (note 26)
6.8
10.0
395.0
359.0
Staff costs recognised within intangible asset additions in the period totalled £5.7m (2023: £5.4m).
Number
Number
Average number of persons employed by the Group, including Directors, during the period relating to 
continuing operations:
Stores/Autocentres
 10,692 
10,471
Central warehousing
 678 
794
Support Centre
 1,184 
1,433
 12,554 
12,698
188
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

4. Staff costs continued
Key management compensation
For the period from continuing operations
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Salaries and short-term benefits
2.2
3.2
Social security costs
0.4
0.6
Pensions
0.1
0.2
Share based payment charge
0.9
2.4
3.6
6.4
Key management compensation includes the emoluments of the Board of Directors and the emoluments of the Halfords Limited and Halfords 
Autocentres management boards. 
Full details of Directors’ remuneration and interests are set out in the audited tables in the Remuneration Committee Report on pages 132 to 
149, which form part of these financial statements.
5. Non-underlying items
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Non-underlying operating expenses relating to continuing operations
Organisational restructure costs (a)
 7.7 
 6.1 
Acquisition and investment related fees (b)
 1.0 
 1.9 
Closure costs (c)
 (4.4)
(0.2)
Non-underlying items before tax relating to continuing operations 
4.3 
7.8 
Tax on non-underlying items (d)
 (0.5)
(1.1)
Non-underlying items after tax relating to continuing operations
3.8
 6.7 
Non-underlying items after tax relating to discontinued operations (Note 10)
6.9 
 0.2 
Total Non-underlying items
10.7
 6.9 
a.	During the period, organisational restructure costs of £7.7m were incurred. Costs in relation to these activities comprise:
•	 £2.0m (2023: £1.6m) linked to the ongoing warehouse management system replacement programme. This project and associated costs 
are expected to conclude in FY25;
•	 £1.9m (2023: £2.9m) of redundancy costs primarily within the support centre;
•	 £1.9m relating to professional fees incurred on a one off strategic review of procurement and related activities undertaken to drive future 
cost efficiency. The strategic review is now complete and no further costs will be incurred;
•	 £1.1m of professional fees incurred in relation to restructuring the Avayler operation. The restructuring is now complete and no further 
costs are anticipated;
•	 £0.5m (2023: £1.2m) due to the new system and financial dual running costs incurred in relation to the integration of National Tyres; and
•	 £0.3m (2023: £0.4m) relating to master data management systems upgrade. This project and associated costs are expected to conclude 
in FY25.
b.	Acquisition and investment related costs of £1.0m (2023: £1.9m) incurred in the period primarily comprise professional fees and acquisition 
costs in relation to the acquisitions of National Tyres and the Lodge Tyre Company, where no further costs will be incurred in relation to these 
acquisitions.
c.	During periods ending 3 April 2020 and 2 April 2021 the Group completed a strategic review of the profitability of its physical estate and 
subsequently closed a number of stores and garages. Assets were impaired and costs associated with ongoing onerous commitments 
under lease agreements and other costs associated with the property exits were provided for. In the current period, £4.4m (2023: £0.2m) 
was credited to the income statement within non-underlying items following lease disposals and subsequent review of provisions required. In 
future periods, further lease disposals may be negotiated. This may result in further amounts being released to the income statement due to 
the significant estimation uncertainty over the timing of exits and the final negotiated settlements.
d.	The tax credit of £0.5m represents a tax rate of 11.6% applied to non-underlying items. The prior period represents a tax credit at 13.8% 
applied to non-underlying items. The effective tax rate is lower than the UK corporation tax rate principally due to the impact of credits 
disallowable for tax.
 halfords.annualreport2024.com
189
FINANCIAL 
STATEMENTS 

6.  Net finance expense
Recognised in profit or loss for the period 
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Finance costs:
Bank borrowings
(2.2)
(1.4)
Amortisation of issue costs on loans 
(0.8)
(0.8)
Commitment and guarantee fees
(1.1)
(1.1)
Interest payable on lease liabilities
(9.0)
(8.8)
Finance costs
(13.1)
(12.1)
7. Taxation
Amounts recognised through Income Statement
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Current taxation
UK corporation tax charge for the period
 5.6 
 6.9 
Adjustment in respect of prior periods
 (5.5) 
1.0
0.1
7.9 
Deferred taxation
Origination and reversal of temporary differences
 0.9
 1.2 
Effect of changes in tax rates
–
0.3
Adjustment in respect of prior periods
4.5
 (1.3) 
 5.4 
 0.2 
Total tax charge for the period
 5.5
 8.1 
Income tax is attributable to:
Profit from continuing operations per income statement
9.8
8.1
Loss from discontinuing operations per note 10
(4.3)
–
5.5
8.1
Amounts recognised through Other Comprehensive Income
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Deferred taxation
Origination and reversal of temporary differences in Other Comprehensive Income
0.4
(1.1)
Total tax charge / (credit) to Other Comprehensive Income for the period
0.4
(1.1)
Amounts recognised directly in Equity
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Current taxation
UK corporation tax credit for the period
 (0.4) 
–
(0.4)
–
Deferred taxation
Origination and reversal of temporary differences in equity
–
 0.9 
–
0.9
Total tax (credit)/charge to equity for the period
(0.4)
0.9
190
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

7. Taxation continued
Reconciliation of effective tax rate
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Profit before tax from continuing operations
38.8
 39.0
Loss before tax on discontinued operations including gain on disposal (Note 10)
(16.4)
(2.8)
Profit before tax
22.4
36.2
UK corporation tax at standard rate of 25% (2023: 19%)
5.6
 6.9
Factors affecting the charge for the period:
Depreciation on expenditure not eligible for tax relief
 0.7
 0.6 
Impact of super deduction capital allowances uplift
–
(0.7)
Employee share options
0.4
 0.8 
Other disallowable expenses
 0.6
 0.8 
Adjustment in respect of prior periods
(1.1)
 (0.3) 
Deferred tax not recognised
(0.2)
–
Impact of overseas tax rates
(0.5)
(0.3)
Impact of change in tax rate on deferred tax balance
–
0.3
Total tax charge for the period
5.5
 8.1 
An increase to the main rate of corporation tax to 25% was substantively enacted on 24 May 2021 and took effect from 1 April 2023. This has 
increased the Company’s current tax charge accordingly in comparison to the prior year rate of 19%. The opening and closing deferred tax 
asset at 29 March 2024 has been calculated based on the rate of 25%.
The effective tax rate of 24.6% (2023: 20.7%) is lower than the UK corporation tax rate principally due to the impact of prior period adjustments 
arising from a review which led to a Research & Development expenditure claim (RDEC) and Super Deduction claims on the Group’s software 
expenditure for the periods ending 1 April 2022 and 31 March 2023, offset by non-deductible depreciation in the period.
The tax charge for the period was £5.5m (2023: £8.1m), including a £3.0m credit (2023: £1.1m credit) in respect of tax on non-underlying items.
In this period, the Group’s contribution to the UK Exchequer from both taxes paid and collected exceeded £273.0m (2023: £261m) with the main 
taxes including corporation tax £11.0m (2023: £4.9m), net VAT £126.3m (2023: £114.8m), employment taxes of £89.0m (2023: £94.2m) and 
business rates £37.0m (2023: £39.2m). 
Impact of future tax changes
Pillar Two legislation, which introduced a global minimum effective tax rate of 15%, has been enacted or substantively enacted in certain 
jurisdictions where the Group operates. The legislation will be effective for the Group’s financial period beginning 30 March 2024. The Group is 
in scope of the enacted or substantively enacted legislation and has performed an assessment of the Group’s potential exposure to Pillar Two 
income taxes. 
The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting 
and financial statements for the constituent entities in the Group. Based on the assessment, the Pillar Two effective tax rates in most of the 
jurisdictions in which the Group operates are above 15%. However, there are a limited number of jurisdictions where the transitional safe harbour 
relief may not apply and the Pillar Two effective tax rate is close to 15%. The Group does not expect a material exposure to Pillar Two income 
taxes in those jurisdictions.
8. Dividends
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Equity – ordinary shares
Final for the 52 weeks to 31 March 2023 – paid 7.0p per share (52 weeks to 1 April 2022: 6.0p)
 15.2 
 13.0 
Interim for the 52 weeks to 29 March 2024 – paid 3.0p per share (52 weeks to 31 March 2023: 3.0p)
 6.5 
 6.5 
 21.7 
 19.5 
In addition, the Directors are proposing a final dividend in respect of the financial period ended 29 March 2024 of 5.0p per share (2023: 7.0p per 
share), which will absorb an estimated £11.0m (2023: £15.3m) of shareholders’ funds. It will be paid on 13 September 2024 to shareholders who 
are on the register of members on 9 August 2024.
 halfords.annualreport2024.com
191
FINANCIAL 
STATEMENTS 

9. Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary 
shares in issue during the period. The weighted average number of shares excludes shares held by an Employee Benefit Trust (see note 23) and 
has been adjusted for the issue/purchase of shares during the period.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential 
ordinary shares. These represent share options granted to employees where the exercise price is less than the average market price of the 
Company’s ordinary shares during the 52 weeks to 29 March 2024.
The Group has also chosen to present an alternative earnings per share measure, with profit adjusted for non-underlying items because it better 
reflects the Group’s underlying performance.
For the period
52 weeks to
29 March
2024
Number of 
shares
m
52 weeks to
31 March
2023
Number of 
shares
m
Weighted average number of shares in issue
 218.9 
 218.9 
Less: shares held by the Employee Benefit Trust (weighted average)
(1.5)
(1.5)
Weighted average number of shares for calculating basic earnings per share
 217.4 
 217.4 
Weighted average number of dilutive shares 
 8.5
 10.0 
Total number of shares for calculating diluted earnings per share
 225.9 
 227.4 
For the period
52 weeks to
29 March
2024
£m
52 weeks to
31 March
2023
£m
Restated*
Earnings from continuing operations
 29.0 
 30.9 
Non-underlying items after tax relating to continuing operations (Note 5)
3.8
 6.7 
Earnings from continuing operations before non-underlying items
 32.8
 37.6 
Loss from discontinued operations
(12.1)
(2.8)
Non-underlying items after tax relating to discontinued operations (Note 10)
 6.9
 0.2 
Loss from discontinued operations before non-underlying items
(5.2)
(2.6)
Total earnings
 16.9
 28.1 
Total non-underlying items after tax
10.7
 6.9 
Total earnings before non-underlying items
27.6
 35.0 
For the period
52 weeks to
29 March
2024
52 weeks to
31 March
2023
Restated*
Basic earnings per ordinary share from continuing operations
13.3p
13.0p
Diluted earnings per ordinary share from continuing operations
12.7p
12.4p
Basic earnings per ordinary share from continuing operations before non-underlying items
15.1p
17.6p
Diluted earnings per ordinary share from continuing operations before non-underlying items
14.5p
16.8p
Basic earnings per ordinary share
7.8p
12.9p
Diluted earnings per ordinary share
7.4p
12.4p
Basic earnings per ordinary share before non-underlying items
12.7p
16.1p
Diluted earnings per ordinary share before non-underlying items
12.2p
15.4p
*	
Please see note 30 for further details.
192
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

10. Discontinued operations
On 25 January 2024 the Group announced its intention to enter into a strategic partnership with specialist tyre distributor Bond International 
and to close its existing tyre operation. As a consequence, on 22 February 2024, the Group sold Birkenshaw Distributors Limited (“BDL”) and 
the wholesale customers of Stepgrades Motor Accessories Ltd (“Viking”) to R & R C Bond (Holdings) Limited (“Bond”). On 22 March 2024, the 
remaining principal operations of Viking ceased.	
	
	
	
	
	
The events noted above result in Viking and BDL being treated as a discontinued operation in the period. The results of the business have been 
shown separately from the continuing business for all periods and presented on the face of the income statement as a discontinued operation. 
This is also reflected in the statement of comprehensive income. Earnings per share (EPS) has been split between continuing and discontinued 
operations. The cash flows of the discontinued operation have also been disclosed in the Consolidated Statement of Cash Flows.
The summary income statement for the businesses treated as a discontinued operation for the periods up to 29 March 2024 and 31 March 
2023 are as follows:
52 Weeks to 29 March 2024
52 weeks to 31 March 2023
Discontinued operations
Before non-
underlying 
items 
£m
Non-
underlying 
items 
£m
Total 
£m
Before non-
underlying 
items 
£m
Non-
underlying 
items 
£m
Total 
£m
Revenue
 16.3 
–
 16.3 
 19.1 
–
 19.1 
Cost of sales
(13.6)
–
(13.6)
(12.6)
–
(12.6)
Gross profit
 2.7 
 – 
 2.7 
 6.5 
 – 
 6.5 
Operating expenses
(9.7)
(11.9)
(21.6)
(9.1)
(0.2)
(9.3)
Loss from operating activities
(7.0)
(11.9)
(18.9)
(2.6)
(0.2)
(2.8)
Net finance expense
 – 
–
 – 
–
–
–
Loss before income tax
(7.0)
(11.9)
(18.9)
(2.6)
(0.2)
(2.8)
Income tax credit
 1.8 
2.5
4.3
 – 
–
 – 
Loss after tax
(5.2)
(9.4)
(14.6)
(2.6)
(0.2)
(2.8)
Gain on disposal
–
 2.5 
 2.5 
–
–
–
Loss after tax from discontinued 
operations
(5.2)
(6.9)
(12.1)
(2.6)
(0.2)
(2.8)
The events noted for Viking and BDL are a major re-organisation of a key line of business. The costs and gains on disposal of various Viking and 
BDL assets associated with these events meet the definition of non-underlying items as per Group accounting policy. The breakdown of these 
are as follows:
52 Weeks 
to 29 March 
2024 
£m
52 weeks 
to 31 March 
2023 
£m
Non-underlying operating expenses:
Organisational restructure costs (a)
 11.9 
 0.2 
Gain on disposal of assets (b)
(2.5)
–
Non-underlying items before tax
 9.4
 0.2 
Tax credit on non-underlying items
(2.5)
–
Non-underlying items after tax
 6.9
 0.2 
a.	Organisational restructuring costs of £11.9m were incurred relating to the disposals of the share capital of BDL and the wholesale customers 
of Viking, and the subsequent closure of the remaining Viking operation. Costs in relation to these activities comprise: redundancy costs 
£2.6m, property related restructuring provisions £3.9m, right-of-use and other asset impairment £4.1m, Viking dual running costs £0.5m and 
legal fees to support the transaction of £0.8m. In the prior period, £0.2m relates to financial dual running costs incurred in the integration of 
National Tyre.	
	
	
	
	
b.	Deferred consideration of £2.9m, of which £0.6m is to be receivable in the next period, was recognised on the contract date for 
the disposal of £0.4m of assets, giving rise to a £2.5m gain on disposal.	
	
	
	
	
	
	
	
	
	
	
	
There are no other items of comprehensive income relating to discontinued operations for the period ending 29 March 2024 (2023: £nil).
 halfords.annualreport2024.com
193
FINANCIAL 
STATEMENTS 

11. Acquisition of Subsidiary
On 26 January 2024 the Group acquired 100% of the issued share capital of Capital Tyres (Northallerton) Limited for a total consideration of 
£0.6m (excluding transaction costs). 
 
Details of the fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows (fair value is used apart 
from leases, contingent liabilities and income taxes);
Capital Tyres (Northallerton) Limited net assets at acquisition date
Book value 
£m
Fair value 
adjustment 
£m
Final fair value 
£m
Tangible assets
 0.1 
–
 0.1 
Inventories
 0.1 
–
 0.1 
Trade and other receivables
 0.3 
–
 0.3 
Cash
–
–
 – 
Trade and other payables
(0.4)
–
(0.4)
Provisions
–
(0.1)
(0.1)
Total
0.1
(0.1)
–
Goodwill
Goodwill was recognised as a result of the acquisition as follows:
£m
Consideration (cash)
 0.6 
Less fair value of identifiable (assets)/liabilities 
– 
Goodwill
0.6
194
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

12. Intangible assets
 Brand 
names and 
trademarks
£m
Customer 
relationships
£m
Supplier 
relationships
£m
Computer 
software
£m
Goodwill
£m
Total
£m
Cost
At 1 April 2022
 12.3 
 23.1 
 9.4 
 108.3 
 406.0 
 559.1 
Additions
 – 
 – 
 – 
 25.0 
–
 25.0 
Additions from acquisitions
 1.8 
 12.1 
 – 
 – 
 18.7 
 32.6 
Disposals
 – 
 – 
 – 
(0.5)
 – 
(0.5)
At 31 March 2023
 14.1 
 35.2 
 9.4 
 132.8 
 424.7 
 616.2 
Additions
 – 
 – 
 – 
 23.6 
 – 
 23.6 
Additions from acquisitions (Note 11)
–
–
–
 – 
 0.6 
 0.6 
Disposals
(0.4)
(0.3)
–
(0.6)
–
(1.3)
At 29 March 2024
13.7
34.9
9.4
155.8
425.3
639.1
Amortisation
At 1 April 2022
 5.9 
 13.6 
 3.1 
 72.4 
 21.7 
 116.7 
Charge for the period
 1.0 
 1.7 
 0.7 
 14.5 
 – 
 17.9 
Disposals
–
–
–
(0.3)
 – 
(0.3)
At 31 March 2023
 6.9 
 15.3 
 3.8 
 86.6 
 21.7 
 134.3 
Charge for the period
 1.0 
 2.2 
 0.6 
 17.4 
 – 
 21.2 
Disposals
(0.1)
–
–
(0.3)
–
(0.4)
At 29 March 2024
7.8
17.5
4.4
103.7
21.7
155.1
Net book value at 29 March 2024
5.9
17.4
5.0
52.1
403.6
484.0
Net book value at 31 March 2023
 7.2 
 19.9 
 5.6 
 46.2 
 403.0 
 481.9
Assets under construction relating to computer software total £7.2m (2023: £nil).
1) Retail
The table below shows the split of goodwill in the Retail CGU:
Company goodwill related to
Amount
Acquired
Halfords Holdings Limited
253.1
31 August 2002
Boardman Bikes Limited and Boardman International Limited
10.7
4 June 2014
Tredz Limited and Wheelies Direct Limited
9.5
23 May 2016
Total for Retail CGU
273.3
2) Autocentres
The table below shows the split of goodwill in the Autocentres CGU, which relates to a portfolio of garages and fleet vans across the 
United Kingdom.
Company goodwill related to
Amount
Acquired
Capital Tyres (Northallerton) Limited
0.6
26 January 2024
LTC Trading Holding
18.1
4 October 2022
APT Tyre Distributers Limited
0.3
11 May 2022
Axle Group
31.3
9 December 2021
Iverson Tyres Limited
0.6
1 December 2021
The Universal Tyre Company (Deptford) Limited
2.1
15 April 2021
McConechy's
6.9
5 November 2019
Victor Holdings Limited (Tyres on the Drive)
0.7
14 October 2019
Nationwide Autocentres
69.7
17 February 2010
Total for Autocentres CGU
130.3
 halfords.annualreport2024.com
195
FINANCIAL 
STATEMENTS 

12. Intangible assets continued
The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. The recoverable amount of goodwill is 
determined based on value-in-use calculations for each of the two groups of CGUs, being Retail and Autocentres. This is the lowest level within 
the Group to which the goodwill is monitored for internal management purposes, which is not higher than the Group’s operating segments as 
reported in Note 1.
This requires estimation of the present value of future cash flows expected to arise from the continuing operations of each group of CGUs. Cash 
flow projections are based on financial business plans prepared by management covering a five-year period, which are reviewed and approved 
by the Board. Plans are based on both past performance and expectations for future market development, linked to the strategy of the Group as 
set out in the Strategic Report section in these financial statements.
These estimates require assumptions over future sales performance, future costs, and long-term growth rates, as well as the application of 
an appropriate discount rate. Management have used the 5-year projections going out to FY28, as approved by the Board, for the basis of the 
impairment reviews. This was based on small like-for-like growth within Retail and Autocentres. Cash outflows required to replace leased assets, 
which are essential to the ongoing operation of each CGU group, were also considered and the estimates were informed by the Group’s recent 
lease negotiations. 
The growth rates used to extrapolate cash flows beyond the plan period, as set out in the table below, do not exceed long-term industry 
averages and reflect the revenue growth and ongoing efficiency initiatives, and the relative maturity of the two groups of CGUs. The growth rates 
for both the Retail and Autcoentres groups of CGUs have been reviewed and updated as required to reflect the current strategy.
The discount rate is a pre-tax rate that reflects the current market assessment of the time value of money and the risks specific to the 
cash- generating units. The pre-tax discount rates used to calculate value in use are derived from the Group’s post-tax weighted average cost 
of capital, incorporating the impact of IFRS 16, and adjusted for the specific risks relating to each cash-generating unit. The discount rates used 
are shown below:
Notes
2024
2023
Discount rate
1
11.9%
10.9%
Growth rate – Retail
2
1.7%
1.0%
Growth rate – HAC
2
2.7%
1.0%
Notes:
1	
Pre-tax discount rate applied to the cash flow projections.
2	
Growth rate used to extrapolate cash flows beyond the five-year budget period.
Sensitivity analysis on the key assumptions in the value-in-use calculations has been undertaken, this found that there is more than adequate 
amount of headroom before an impairment would be triggered. 
Modelling included looking at the effect of a 1% decrease in terminal growth rate and a 1% increase in discount rate. Both separately and 
combined, these showed adequate headroom when sensitised individually but a significant reduction in headroom when combined as set out in 
the table below. Results of this sensitivity analysis are shown below:
Retail
2024
£m
Autocentres
2024
£m
Original headroom
113.6
88.1
Headroom using a discount rate increased by 1%
43.9
37.7
Headroom using a terminal growth rate decreased by 1%
56.4
46.7
Headroom using a combined 1% decrease in terminal growth rate and 1% increase in discount rate
0.2
7.2
In addition to the sensitivity testing performed, management have performed a stress test which shows that EBIT year on year would have to 
decrease by 22.9% within Retail and 23.4% within Autocentres before an impairment issue would be triggered. This is deemed unlikely.
196
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

13. Property, Plant and Equipment
Land and
buildings
£m
Fixtures,
fittings
and
equipment
£m
Total
£m
Cost 
At 1 April 2022
 83.7 
 298.7 
 382.4 
Restated
6.4
(6.4)
–
At 1 April 2022 restated
 90.1
292.3
382.4
Additions
 6.7 
 16.4 
 23.1 
Additions from acquisitions
 0.4 
 3.4 
 3.8 
Disposals
(2.8)
(8.1)
(10.9)
At 31 March 2023
 94.4
304.0
 398.4 
Additions
 5.4 
14.7
20.1
Disposals
(1.6)
(6.5)
(8.1)
At 29 March 2024
98.2
312.2
410.4
Depreciation
At 1 April 2022
 55.8 
 224.9 
 280.7 
Restated
2.2
(2.2)
–
At 1 April 2022 restated
58.0
222.7
280.7
Depreciation for the period
 5.4 
 22.7 
 28.1 
Impairment charge
 0.4 
 0.8 
 1.2 
Disposals
(2.3)
(7.1)
(9.4)
At 31 March 2023
 61.5
239.1
 300.6 
Depreciation for the period
 5.5
21.7
27.2
Impairment charge
–
 0.5 
0.5
Disposals
(1.3)
(6.1)
(7.4)
At 29 March 2024
65.7
255.2
320.9
Net book value at 29 March 2024
32.5
57.0
89.5
Net book value at 31 March 2023 restated
 32.9
64.9 
 97.8 
Restatement relates to reclassification of assets to Land and Buildings that were incorrectly mapped to Fixtures, Fittings and equipment in 
previous periods.
Assets under construction relating to fixtures, fittings and equipment at 29 March 2024 total £2.7m (2023: £nil).
No fixed assets are held as security for external borrowings.
No interest or other borrowing costs have been recognised within additions for the period (2023: Nil).
 halfords.annualreport2024.com
197
FINANCIAL 
STATEMENTS 

14.  Leases
All leases where the Group is a lessee are accounted for by recognising a right-of-use asset and a lease liability except for:
•	 Leases of low value assets; and 
•	 Leases with a term of 12 months or less. 
The Group’s leases relate to the store and garage premises from which the Group operates with typical lease terms of 5-10 years. Lease rentals 
are typically fixed for 3-5 years with negotiated rent reviews.
i) Amounts recognised in Consolidated Statement of Financial Position
Right-of-Use Assets
Land and 
buildings
£m
Equipment
£m
Total
£m
At 1 April 2022
 345.6 
 4.6 
 350.2 
Additions on acquisition of subsidiary
 5.8 
 0.5 
 6.3 
Additions to right-of-use assets
 23.6 
 7.4 
 31.0 
Amortisation charge for the year
(72.8)
(4.7)
(77.5)
Effect of modification of lease
 1.0 
 – 
 1.0 
Derecognition of right-of-use assets
(0.7)
 – 
(0.7)
Impairment reversal
 2.3 
–
 2.3 
At 31 March 2023
304.8
7.8
312.6
Additions on acquisition of subsidiary
–
–
–
Additions to right-of-use assets
 31.7 
 11.6 
43.3
Amortisation charge for the year
(74.0)
(5.7)
(79.7)
Effect of modification of lease
 10.5 
–
 10.5 
Derecognition of right-of-use assets
(5.6)
–
(5.6)
Impairment charge
(2.8)
–
(2.8)
At 29 March 2024
264.6
13.7
278.3
The impairment charge of £2.8m primarily relates to leases held as part of the Viking and BDL disposals and so are included in 
discontinued operations. 
Lease Liabilities
Land and 
buildings
£m
Equipment
£m
Total
£m
At 1 April 2022
 385.1 
 5.9 
 391.0 
Additions on acquisition of subsidiary
 5.8 
 0.5 
 6.3 
Additions to lease liabilities
 22.3 
 7.4 
 29.7 
Interest expense
 8.5 
 0.3 
 8.8 
Effect of modification to lease
 1.0 
 – 
 1.0 
Lease payments
(84.6)
(4.7)
(89.3)
Disposals to lease liabilities
(1.1)
 – 
(1.1)
Foreign exchange movements
 0.5 
 – 
 0.5 
At 31 March 2023
 337.5 
 9.4 
 346.9 
Additions on acquisition of subsidiary
 – 
 – 
 – 
Additions to lease liabilities
 31.8 
 10.5 
42.3
Interest expense
 8.5 
 0.5 
 9.0 
Effect of modification to lease
 11.1 
(0.5)
 10.6 
Lease payments
(87.7)
(5.9)
(93.6)
Disposals to lease liabilities
(7.8)
 – 
(7.8)
Foreign exchange movements
(0.2)
 – 
(0.2)
At 29 March 2024
293.2
14.0
307.2
The derecognition of right of use assets and disposals of lease liabilities relates to ongoing store and garage closure programmes where Leases 
have been exited before their original exit date.
Modification of leases relate to renegotiations of leases following discussions with landlords.
198
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

14.  Leases continued
Carrying value of lease liabilities included in the statement of financial position
29 March
2024
£m
31 March
2023
£m
Current liabilities
 79.1 
 77.6 
Non-current liabilities
 228.1
 269.3 
Lease liabilities
29 March
2024
£m
31 March
2023
£m
Maturity analysis – contractual undiscounted cash flows
Less than one year
87.5
85.0
Between one and two years
78.8
80.9
Between two and three years
56.8
67.1
Between three and four years
40.7
45.2
Between four and five years 
27.3
30.3
Between five and six years
16.9
20.3
Between six and seven years
13.7
14.0
Between seven and eight years
10.7
11.8
Between eight and nine years
6.9
9.3
Between nine and ten years
1.2
6.0
After ten years
2.8
3.6
Total contractual cash flows
343.4
373.5
ii) Amounts recognised in Consolidated Income Statement
Land and 
buildings
£m
Equipment
£m
Total
£m
52 weeks ended 29 March 2024
Amortisation charge on right-of-use assets
 74.0 
 5.7 
 79.7
Interest on lease liabilities
 8.5 
 0.5 
 9.0 
Expenses relating to short-term leases
 5.1 
 1.3 
 6.4 
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets
 – 
 0.3 
 0.3 
52 weeks ended 31 March 2023
Amortisation charge on right-of-use assets
 72.8 
 4.7 
 77.5 
Interest on lease liabilities
 8.5 
 0.3 
 8.8 
Expenses relating to short-term leases
 4.8 
 – 
 4.8 
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets
 – 
 2.0
2.0
iii) Amounts recognised in Consolidated Statement of Cash Flows
The total cash outflow for leases in the period ended 29 March 2024 was £93.6m (2023:£ 89.3m)
15. Inventories
29 March 
2024
£m
31 March 
2023
£m
Finished goods for resale
237.5
256.2
Finished goods inventories include £12.2m (2023: £13.4m) of provisions to carry inventories at net realisable value where such value is lower 
than cost. During the period a £1.2m release (2023: £3.4m release) of provisions for inventory including returned goods provisions was 
recognised.
Goods bought for resale recognised as a cost of sale amounted to £648.5m (2023: £662.9m).
 halfords.annualreport2024.com
199
FINANCIAL 
STATEMENTS 

16. Trade and other receivables
29 March 
2024
£m
31 March 
2023
£m
Falling due within one year:
Trade receivables
 64.1
 64.1 
Less: provision for impairment of receivables
(0.4)
(0.5)
Trade receivables–net
 63.7
 63.6 
Other receivables
 37.5 
 31.1 
Accrued income
51.3
33.2
Prepayments
 8.5 
 16.7 
 161.0
 144.6 
Falling due after one year:
Other receivables
 2.3
–
2.3
–
Information about the Group’s exposure to credit and market risks and impairment losses for trade and other receivables is included in Note 22.
Accrued income at 29 March 2024 includes £38.3m (2023: £29.7m) relating to supplier income.
Other receivables at 29 March 2024 includes £5.2m (2023: £0.8m) relating to a supplier financing arrangement.
17. Cash and cash equivalents
29 March 
2024
£m
31 March 
2023
£m
Cash at bank and in hand
13.3
41.9
The Group’s banking arrangements are subject to a netting facility whereby credit balances may be offset against the indebtedness of certain 
other Group companies. £0.9m (2023: £3.1m) of the Group’s cash and cash equivalents included in the balance sheet and cash flow statments 
is restricted and not available to utilise within the Group on demand. This comprises £0.3m (2023: £2.4m) held by the trustee of the Groups 
Employment Benefit Trust in relation to the share scheme for employees and £0.6m (2023: £0.7m) in relation to the ‘Here to Help’ fund.
18. Borrowings
Current
29 March 
2024
£m
31 March 
2023
£m
Unsecured bank overdraft
–
9.7
Other borrowings
1.8
–
Lease liabilities
79.1
77.6
80.9
87.3
Non-current
Drawdown on RCF
19.6
34.0
Lease liabilities
228.1
269.3
247.7
303.3
The Group’s borrowing facility is a committed £180m revolving credit facility, which began on 4 December 2020, of which £20.0m is designated 
as an overdraft facility. On 16 April 2024 the facility was extended for a further 4 years to 16 April 2028 with a 1 year extension option. The 
facility carries an interest rate of SONIA plus a margin, which is variable based on the gearing measures as set out in the facility covenant 
certificate and which is currently 200 basis points. Both utilisation and non-utilisation fees are also applicable, being charged when utilisation 
rises above a set percentage with non-utilisation based on a set percentage of the applicable margin. These charges are based on market rates 
as are the commitment fees.
200
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

18. Borrowings continued
The Group had the following committed borrowing facilities available at each balance sheet date in respect of which all conditions precedent 
had been met:
29 March 
2024
£m
31 March 
2023
£m
Expiring between 2 and 5 years
180.0
180.0
180.0
180.0
The committed facility of £180.0m (2023: £180.0m) relates to the Group’s revolving credit facility, of which £20.0m is designated as an overdraft 
facility. This facility incurred commitment fees at market rates.
19. Trade and other payables
29 March 
2024
£m
31 March 
2023*
£m
Current liabilities
Trade payables
 242.8
 232.7 
Other taxation and social security payable
 38.0
 34.1 
Other payables
 0.9
 16.2 
Accruals and deferred income
 86.7
 79.3 
368.4
 362.3 
Non-current liabilities
Accruals and other deferred income
 3.6 
 3.5 
 3.6 
 3.5 
*	
Prior period restated please see note 30 for further details.
Accruals and deferred income at 29 March 2024 includes £8.3m (2023: £7.8m) of deferred income in relation to product warranties and service 
and repair plans, of which £4.8m (2023: 4.3m) is within current liabilities and £3.6m (2023: £3.5m) is within non-current liabilities. The deferred 
income balance also includes £12.0m (2023: £19.1m) of payments made in advance of goods and services being provided to customers.
Items included in deferred income at 31 March 2023 that have been recognised within Revenue in the current period total £24.4m 
(2023: £21.5m).
Accruals and deferred income at 29 March 2024 includes deferred consideration of £4.0m (2023: £3.2m) relating to the acquisition of Lodge 
Tyre on 4 October 2022, which is payable in July 2024.
20. Provisions 
Property 
related
£m
Other 
trading
£m
Total
£m
At 31 March 2023
 20.4 
 5.7 
 26.1 
Charged during the period
7.6
0.2
7.8
Acquired during the period
–
0.1
0.1
Utilised during the period 
(5.7)
(0.4)
(6.1)
Released during the period
(4.4)
 – 
(4.4)
At 29 March 2024
17.9 
 5.6 
23.5
Analysed as:
Current liabilities
7.3
 5.1 
12.4
Non-current liabilities
10.6
 0.5 
11.1
Property related provisions consist of costs of associated wear and tear incurred on leasehold properties, other ongoing onerous commitments 
associated with property leases (excluding rent), and costs related to the exit of closed stores and garages. Of the £7.8m charged in the period, 
£1.7m is within non-underlying items, with £4.6m relating to discontinued operations, see note 10. The property-related provisions will be utilised 
over the average remaining lease term of 1.9 years.
Other trading provisions comprise a sales returns provision and an employer/product liability provision (of which £0.5m is non-current).
 halfords.annualreport2024.com
201
FINANCIAL 
STATEMENTS 

21. Deferred tax
The following are the major deferred tax assets and liabilities recognised by the Group and movements thereon in the current and prior 
reporting periods.
Property 
related items
£m
Short term 
temporary 
differences 
£m
Share-based 
payments
£m
Intangible 
assets
£m
Tax
losses
£m
Total
£m
At 1 April 2022
 9.4 
 0.5 
 4.1 
(6.2)
 6.9 
 14.7 
(Charge)/credit to the income statement
–
 0.4 
(0.7)
 1.1 
(1.0)
(0.2)
Credit to other comprehensive income
–
 1.1 
–
–
 – 
 1.1 
Acquisition of subsidiary
(0.3)
–
–
(3.5)
 – 
(3.8)
Charge to equity
–
–
(0.9)
–
 – 
(0.9)
At 31 March 2023
 9.1 
 2.0 
 2.5 
(8.6)
 5.9 
 10.9 
(Charge)/credit to the income statement
(6.4)
 0.2 
(0.7)
 1.0 
 0.5 
(5.4)
Charge to other comprehensive income
–
(0.4)
–
–
–
(0.4)
Acquisition of subsidiary
–
–
–
–
–
 – 
Charge to equity
–
–
–
–
–
 – 
At 29 March 2024
 2.7 
 1.8 
 1.8 
(7.6)
 6.4 
5.1
Deferred income tax assets and liabilities are offset when the group has a legally enforceable right to do so and when the deferred income taxes 
relate to the same fiscal authority. The offset amounts are as follows:
29 March
2024
£m
31 March
2023
£m
Deferred tax assets
 17.7
 23.0 
Deferred tax liabilities
(12.6)
(12.1)
 5.1
 10.9 
No deferred tax asset has been recognised in respect of £32.5m (2023: £35.3m) relating to unused tax losses as it is not considered probable 
that there will be future taxable profits available for offset. The net impact of this balance is an unrecognised deferred tax asset of £8.1m. These 
losses may be carried forward indefinitely.
22. Financial instruments and related disclosures
a) Treasury policy
The Group’s treasury department’s main responsibilities are to:
•	 Ensure adequate funding and liquidity for the Group;
•	 Manage the interest risk of the Group’s debt;
•	 Invest surplus cash;
•	 Manage the clearing bank operations of the Group; and
•	 Manage the foreign exchange risk on its non-sterling cash flows.
Treasury activities are delegated by the Board to the Chief Financial Officer (“CFO”). The CFO controls policy and performance through the 
line management structure to the Group Treasurer and by reference to the Treasury Committee. The Treasury Committee meets regularly to 
monitor the performance of the Treasury function. 
Policies for managing financial risks are governed by Board approved policies and procedures, which are reviewed on an annual basis.
The Group’s debt management policy is to provide an appropriate level of funding to finance the Business Plan over the medium term at a 
competitive cost and ensure flexibility to meet the changing needs of the Group. Details of the Group’s current borrowing facilities are contained 
in Note 18.
202
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

22. Financial instruments and related disclosures continued 
b. Accounting classifications and fair value
29 March 2024
Note
Carrying amount
Fair value 
– hedging 
instruments
£m
Amortised 
cost
£m
Other 
financial 
liabilities
£m
Total 
carrying 
amount
£m
Financial assets measured at fair value
Forward exchange contracts used for hedging
 0.2 
 – 
 – 
 0.2 
 0.2 
 – 
 – 
 0.2 
Financial assets not measured at fair value
Trade and other receivables*
16
 – 
 103.5
 – 
103.5
Cash and cash equivalents
17
 – 
 13.3 
 – 
 13.3 
 – 
116.8
 – 
116.8
Financial liabilities measured at fair value
Forward exchange contracts used for hedging
 (1.6) 
 – 
 – 
 (1.6) 
 (1.6) 
 – 
 – 
 (1.6) 
Financial liabilities not measured at fair value
Borrowings
18
 – 
 – 
(21.4)
(21.4)
Lease liabilities
18
 – 
 – 
(307.2)
(307.2)
Trade and other payables**
19
 – 
 – 
(242.8)
(242.8)
 – 
 – 
(571.4)
(571.4)
* 	 Prepayments of £8.5m and accrued income of £51.3m are not included as a financial asset.
** 	 Other taxation and social security payables of £38.0m, deferred income and accruals of £86.7m and other payables of £0.9m are not included as a financial liability.
31 March 2023
Note
Carrying amount restated
Fair value 
– hedging 
instruments
£m
Amortised 
cost
£m
Other financial 
liabilities
£m
Total carrying 
amount
£m
Financial assets measured at fair value
Forward exchange contracts used for hedging
 1.1 
 – 
 – 
 1.1 
 1.1 
 – 
 – 
 1.1 
Financial assets not measured at fair value
Trade and other receivables*
16
 – 
 94.7 
 – 
 94.7 
Cash and cash equivalents
17
 – 
 41.9 
 – 
 41.9 
 – 
 136.6 
 – 
 136.6 
Financial liabilities measured at fair value
Forward exchange contracts used for hedging
(4.2)
 – 
 – 
(4.2)
(4.2)
 – 
 – 
(4.2)
Financial liabilities not measured at fair value
Borrowings
18
 – 
 – 
(43.7)
(43.7)
Lease liabilities
18
 – 
 – 
(346.9)
(346.9)
Trade and other payables**
19
 – 
 – 
(232.7)
(232.7)
 – 
 – 
(623.3)
(623.3)
* 	 Prepayments of £16.7m and accrued income of £33.2m are not included as a financial asset.
** 	Other taxation and social security payables of £34.1m, deferred income and accruals of £79.3m and other payables of £16.2m are not included as a 
financial liability.
The fair values of each class of financial assets and liabilities is the carrying amount, based on the following assumptions:
Trade receivables, trade payables, short-term 
deposits and borrowings
The fair value approximates to the carrying amount predominantly because of the short 
maturity of these instruments.
Long-term borrowings
The fair value of bank loans and other loans approximates to the carrying value reported 
in the balance sheet as the majority are floating rate where payments are reset to market 
rates at intervals of less than one year.
Forward currency contracts
The fair value is determined using the mark to market rates at the reporting date and the 
outright contract rate.
 halfords.annualreport2024.com
203
FINANCIAL 
STATEMENTS 

22. Financial instruments and related disclosures continued 
Fair value hierarchy
Financial instruments carried at fair value are required to be measured by reference to the following levels:
•	 Level 1: quoted prices in active markets for identical assets or liabilities;
•	 Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or 
indirectly (i.e. derived from prices); and
•	 Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
All financial instruments carried at fair value have been measured by a Level 2 valuation method.
c. Financial risk management
The Group has exposure to the following risks arising from financial instruments:
•	 Credit risk;
•	 Liquidity risk; and
•	 Market risk.
i) Risk management framework
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. 
The Board of Directors is responsible for establishing the Group’s risk management policies. 
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and 
controls and to monitor risks and adherence to limits. Risk management policies and systems are regularly reviewed to reflect changes in 
market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to maintain a 
disciplined and constructive control environment in which all employees understand their roles and obligations. 
The Group Audit Committee oversees how management monitors compliance with the Group’s risk management framework in relation to the 
risks faced by the Group. The Group Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and 
ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
ii) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations 
and arises principally from the Group’s receivables from customers.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date 
was £117.9m (2023: £158.7m). 
Impairment losses on financial assets recognised in profit or loss were as follows:
£m
52 weeks to
29 March
2024
52 weeks to
31 March
2023
Impairment loss on trade and other receivables
(0.1)
(0.3)
(0.1)
(0.3)
Trade receivables
The Group does not have any individually significant customers and so no significant concentration of credit risk.
The majority of the Group’s sales are paid in cash at point of sale which further limits the Group’s exposure. The Group’s exposure to credit risk 
is influenced mainly by the individual characteristics of each customer. The Board of Directors has established a credit policy under which each 
new customer is analysed individually for creditworthiness before the Group’s standard payment terms and conditions are offered. The Group 
limits its exposure to credit risk from trade receivables by establishing a maximum payment period of one month for customers. There are no 
material trade receivable balances with customers based outside of the UK.
The Group has taken into account the historic credit losses incurred on trade receivables and adjusted it for forward-looking estimates. The 
movement in the allowance for impairment in respect of trade receivables during the year was £0.1m decrease. 
204
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

22. Financial instruments and related disclosures continued 
Cash and cash equivalents
The Group held cash and cash equivalents of £13.3m at 29 March 2024 (2023: £41.9m). The cash and cash equivalents are held with banks and 
financial institutions which are designated “A” by Standard & Poor and Fitch, and “A1” by Moody’s. The Group does not consider there to be any 
impairment loss in respect of these balances (2023: £nil).
Derivatives
The derivatives are entered into with banks and financial institutions counterparties which are designated at least “BBB-” by Standard & Poor and 
Fitch, and “A3” by Moody’s.
iii) Market risk
The Group’s exposure to market risk predominantly relates to interest, currency and commodity risk. These are discussed further below. 
Commodity risk is due to the Group’s products being manufactured from metals and other raw materials, subject to price fluctuation. The Group 
mitigates this risk through negotiating fixed purchase costs or maintaining flexibility over the specification of finished products produced by its 
supply chain to meet fluctuations.
Foreign currency risk
The Group has a significant transaction exposure as a result as direct-sourced purchases from its suppliers in the Far East & Europe, with most 
of the trade being in US dollars. The Group’s policy is to manage the foreign exchange transaction exposures of the business to ensure the 
actual costs do not exceed the budget costs by more than 10% (excluding increases in the base cost of the product). 
The Group does not hedge either economic exposure or the translation exposure arising from the profits, assets and liabilities of non-sterling 
businesses whilst they remain immaterial.
The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, 
amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is 
expected to be, and has been, effective in offsetting changes in cash flows of the hedging item using the hypothetical derivative method. 
In these hedge relationships, the main sources of ineffectiveness are:
•	 The effect of the counterparty and Group’s own credit risk on the fair value of the forward exchange contracts, which is not reflected in the 
change in the fair value of the hedged cash flows attributable to the change in exchange rates; and
•	 Changes in the timing of the hedged item.
During the 52 weeks to 29 March 2024, the foreign exchange management policy was to hedge via forward contract purchase between 75% 
and 100% of the material foreign exchange transaction exposures on a rolling 18-month basis. Hedging is performed through the use of foreign 
currency bank accounts and forward foreign exchange contracts.
At 29 March 2024 the Group held the following instruments to hedge exposures to changes in foreign currency:
Forward exchange contracts
Maturity
1–6
months
6–12
months
More than 
one year
Net exposure (in £m)
64.4
33.4
9.5
Average GBP:USD forward contract rate
1.2421
1.2590
1.2615
At 31 March 2023 the Group held the following instruments to hedge exposures to changes in foreign currency: 
Forward exchange contracts
Maturity
1–6
months
6–12
months
More than 
one year
Net exposure (in £m)
40.0
33.5
12.4
Average GBP:USD forward contract rate
1.2310
1.1962
1.1932
 halfords.annualreport2024.com
205
FINANCIAL 
STATEMENTS 

22. Financial instruments and related disclosures continued
The amounts at the reporting date relating to items designated as hedged items were as follows:
Forward currency risk
Cash flow 
hedge 
reserve 
(excluding 
tax)
£m
Balances remaining in the 
cash flow hedge reserve 
from hedging relationships 
for which hedge accounting 
is no longer applied
£m
At 29 March 2024
Inventory purchases
(0.6)
 – 
At 31 March 2023
Inventory purchases
(2.1)
 – 
The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date is as follows:
29 March 2024
USD
£m
Other
£m
Cash and cash equivalents
 0.6 
 0.6 
Trade and other receivables
 1.1 
 – 
Trade and other payables
(27.6)
(2.0)
(25.9)
(1.4)
The table below shows the Group’s sensitivity to foreign exchange rates on its US dollar financial instruments, the major currency in which the 
Group’s derivatives are denominated. 
2024
Increase/
(decrease) in 
equity
£m
10% appreciation of Sterling against the US dollar
13.1
10% depreciation of Sterling against the US dollar
(10.7)
A strengthening/weakening of Sterling, as indicated, against the USD at 29 March 2024 would have increased / (decreased) equity and profit 
or loss by the amounts shown above. This analysis is based on foreign currency exchange rate variances that the Group considered to be 
reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant.
The movements in equity relate to the fair value movements on the Group’s forward contracts that are used to hedge future stock purchases. 
Interest rate risk
The Group’s policy aims to manage the interest cost of the Group within the constraints of the Business Plan and its financial covenants. The 
Group’s borrowings are currently subject to floating rate interest rates and the Group will continue to monitor movements in the swap market.
If interest rates on floating rate borrowings (i.e. cash and cash equivalents and bank borrowings which attract interest at floating rates) were to 
change by + or – 1%, the impact on the results in the Income Statement and equity would be a decrease/increase of £0.4m (2023: £0.2m).
Interest rate movements on deposits, obligations under finance leases, trade payables, trade receivables, and other financial instruments do not 
present a material exposure to the Group’s statement of financial position.
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for 
shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to 
shareholders, issue new shares or sell assets to reduce debt.
The Group manages capital by operating within a debt ratio, which is calculated as the ratio of net debt to underlying EBITDA. The Group was in a 
net debt position as at 29 March 2024 (2023: net debt).
206
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

22. Financial instruments and related disclosures continued 
Pension liability risk
The Group has no association with any defined benefit pension scheme and therefore carries no deferred, current or future liabilities in respect 
of such a scheme. The Group operates a number of Group Personal Pension Plans for colleagues.
Liquidity risk
The Group ensures that it has sufficient cash or loan facilities to meet all its commitments when they fall due by ensuring that there is sufficient 
cash or working capital facilities to meet the cash requirements of the Group for the current Business Plan.
For providers of debt, the Group ensured that such counterparties used for credit transactions held at least an investment grade credit rating 
at the time of the refinancing (December 2020) and in April 2024 when the Group’s borrowing facility was extended to April 2028. At the period 
end the banks within the banking group maintained a credit rating of BBB- or above, in line with Treasury policy. The counterparty credit risk is 
reviewed by the Chief Financial Officer regularly as part of the Treasury Committee process. In addition, the credit exposure is monitored on a 
daily basis.
The risk is measured through regular review of forecast liquidity by the Head of Treasury to determine whether there are sufficient credit facilities 
to meet forecast requirements, and through monitoring covenants on a regular basis to ensure there are no breaches, which would lead to an 
“Event of Default”. Calculations are submitted biannually to the Group banking agent. There have been no breaches of covenants during the 
reported periods.
The contractual maturities of leases liabilities are disclosed in Note 14. All trade and other payables are due within one year.
The following table provides an analysis of the anticipated contractual cash flows for the Group’s forward currency contracts. Cash flows 
receivable in foreign currencies are translated using spot rates as at 29 March 2024 (Prior year: 31 March 2023).
2024
Receivables
£m
Payables
£m
Due less than one year
30.6 
73.1
Due between 1 and 2 years
4.2
5.9
Contractual cash flows
34.8
79.0
Fair value of derivatives
0.2
(1.6)
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. 
23.  Capital and reserves
2024
2023
Ordinary shares of 1p each:
Number of
shares
2024
£'000
Number of
shares
2023
£'000
Allotted, called up and fully paid
 218,928,736 
 2,189 
 218,928,736 
 2,189 
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings 
of the Company. All shares rank equally with regard to the Company’s residual assets.
In total the Company received proceeds of £4.2m (2023: £0.4m) from the exercise of share options. During the period the Company purchased 
£10.2m (2023: £1.5m) of its own shares.
Investment in own shares
At 29 March 2024 the Company held in Trust 502,138 (2023: 973,212) of its own shares with a nominal value of £5,021 (2023: £9,732). The 
Trust has waived any entitlement to the receipt of dividends in respect of its holding of the Company’s ordinary shares. The market value of 
these shares at 29 March 2024 was £0.8m (2023: £1.7m). In the current period 5,176,875 (2023: 1,000,000) were repurchased and transferred 
into the Trust, with 5,647,949 (2023: 1,478,490) reissued on exercise of share options.
 halfords.annualreport2024.com
207
FINANCIAL 
STATEMENTS 

23. Capital and reserves continued
Other reserves
Capital Redemption Reserve
The capital redemption reserve has arisen following the purchase by the Company of its own shares and comprises the amount by which the 
distributable profits were reduced on these transactions in accordance with the Companies Act 2006.
Hedging Reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to 
hedged transactions that have not yet occurred.
Non-controlling interest
A non-controlling interest arose following the sale of a minority interest in Avayler Trading Limited during the period. The non-controlling 
interest balance is measured by the proportion of net assets at the date of the initial sale, with the closing balance also including the total profit 
attributable to the third party since the date of the share disposal.
24. Share based payments
The Group has five share award plans, all of which are equity-settled schemes. The Group Income Statement charge recognised in respect of 
share-based payments for the current period is £3.8m (2023: £2.4m).
1. Halfords Company Share Option Scheme (CSOS)
The CSOS was introduced in June 2004 and the Company made annual grants up to and including 2016. Options were granted with a fixed 
exercise price equal to the market price of the shares under option at the date of grant. The contractual life of an option is ten years.
Options granted before August 2013 became exercisable on the third anniversary of the date of grant, subject to the achievement of a three-
year performance condition. For grants up to 150% of basic salary the options could only be exercised if the increase in earnings per share 
(“EPS”) over the performance period is not less than the increase in the Retail Price Index (“RPI”) plus 3.5% per period. In the case of grants in 
excess of 150% of basic salary, the excess could only be exercised in full if the increase is not less than RPI plus 10% per period. Exercise of an 
option is subject to continued employment.
The expected volatility is based on historical volatility of a peer group of companies since the IPO in June 2004. The expected life is the average 
expected period to exercise. The risk free rate of return is the yield on zero-coupon UK government bonds.
Options were valued using the Black-Scholes option-pricing models. No performance conditions were included in the fair value calculations. 
2. Management Share Plan (“MSP”)
The CSOS has been replaced by the MSP. Nil cost options have been granted which can be exercised on or after the third anniversary of the 
date on which they are granted. The option cannot be exercised later than ten years from the date on which it was granted. Exercise of an option 
is subject to continued employment.
The expected volatility is based on historical volatility of a peer group of companies. The expected life is the average expected period to 
exercise. The risk free rate of return is the yield on zero-coupon UK government bonds.
Options were valued using the Black-Scholes option-pricing models. No performance conditions were included in the fair value calculations. 
3. Halfords Sharesave Scheme (“SAYE”)
The SAYE is open to all employees with eligible employment service. Options may be exercised under the scheme if the option holder completes 
their saving contract for a period of three years and then not more than six months thereafter. Special provisions allow early exercise in the case 
of death, injury, disability, redundancy, retirement or because the company or business which employs the option holder is transferred out of the 
Group, or in the event of a change in control, reconstruction or winding up of the Company.
Options were valued using the Black-Scholes option-pricing models.
208
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE  
FINANCIAL STATEMENTS

24. Share based payments continued
4. Performance Share Plan (“PSP”)
The introduction of the PSP was approved at the Annual General Meeting in August 2005 awarding the Executive Directors and certain senior 
management conditional rights to receive shares. Annual schemes have been approved for each year from 2005.
For 2009 awards onwards, the Committee has recommended the reinvestment of dividends earned on award shares, such shares to be 
awarded in proportion to the vesting of the original award shares. The grants awarded under the PSP in 2019, 2020, 2021 and 2022 were 
awarded final dividends of 7.0p per share and were reinvested at a cost of £1.9867 per share. PSP grants awarded in 2019, 2020, 2021, 2022 
and 2023 earned interim dividends of 3.0p per share and were reinvested at a cost of £1.771 per share.
The performance criteria for the 2018 PSP award and the 2019 PSP award was weighted 50% towards Group EPS growth, 25% towards 
Group revenue growth and 25% towards Group Free Cash Flow. The 2020 PSP award performance criteria was weighted 20% towards Group 
EPS growth, 30% towards Group Free Cash Flow, 10% towards Group services-related sales and 40% towards total shareholder return. The 
performance criteria for the 2021, 2022 and 2023 awards are weighted 50% towards Group EPS growth, 20% towards Group services-related 
sales and 30% towards total shareholder return.
For the 2019 PSP scheme other senior participants conditions were based on the performance of the individual business units. The awards are 
weighted 37.5% towards Group EPS growth targets, 12.5% weighted towards Group revenue growth targets and 50% weighted toward EBIT of 
the individual business unit.
Options were valued using the Black–Scholes option-pricing models. For 2020 onwards scheme options relating to the total shareholder return 
tranche were valued using the Monte Carlo option-pricing model.
5. Deferred Bonus Plan (“DBP”)
Under the Deferred Bonus Plan (“DBP”) one third of the Executive’s annual bonus is deferred as shares for three years.
The following tables reconcile the number of share options outstanding and the weighted average exercise price (WAEP) for all share 
award plans.
 halfords.annualreport2024.com
209
FINANCIAL 
STATEMENTS 

24. Share based payments continued
For the period ended 29 March 2024
CSOS
MSP
SAYE
PSP
Number 
(‘000)
WAEP 
(£)
Number 
(‘000)
WAEP 
(£)
Number 
(‘000)
WAEP 
(£)
Number 
(‘000)
WAEP 
(£)
Outstanding at start of period
 240 
 3.71 
 2,297 
 2.05 
 8,267 
 1.28 
 8,160 
–
Granted
–
–
 1,310 
 1.93 
 3,383 
 1.51 
 2,216 
 – 
Shares representing dividends 
reinvested
–
–
–
–
–
–
 317 
 – 
Forfeited
–
–
–
–
–
 – 
(1,097)
 – 
Exercised
–
–
(390)
 1.99 
(3,944)
 1.34 
(1,139)
 – 
Lapsed
(240)
 3.71 
(284)
 1.99 
(1,319)
 1.28 
–
 – 
Outstanding at end of period
 – 
 3.71 
 2,933 
 2.01 
 6,387 
 1.36 
 8,457 
–
Exercisable at end of period
 – 
–
 295 
–
 264 
–
–
–
Exercise price range (£)
–
–
–
 – 
–
1.16–1.79
–
–
Weighted average remaining 
contractual life (years)
–
–
–
8.2
–
2.5
–
5.4
For the period ended 31 March 2023
CSOS
MSP
SAYE
PSP
Number 
(‘000)
WAEP 
(£)
Number 
(‘000)
WAEP 
(£)
Number 
(‘000)
WAEP 
(£)
Number 
(‘000)
WAEP 
(£)
Outstanding at start of period
 382 
 3.71 
 1,747 
 2.28 
 6,479 
 1.44 
 6,306 
 – 
Granted
–
–
 1,054 
 1.67 
 3,515 
 1.16 
 2,548 
 – 
Shares representing dividends 
reinvested
–
–
–
–
–
–
 284 
 – 
Forfeited
–
–
–
–
–
 – 
(580)
 – 
Exercised
(3)
 3.71 
(312)
 1.35 
(247)
 1.56 
(398)
 – 
Lapsed
(139)
 3.71 
(192)
 2.36 
(1,480)
 1.65 
–
 – 
Outstanding at end of period
 240 
 3.71 
 2,297 
 2.05 
 8,267 
 1.28 
 8,160 
–
Exercisable at end of period
 – 
–
 – 
–
 – 
–
–
–
Exercise price range (£)
–
3.71
–
 – 
–
1.16–1.79
–
–
Weighted average remaining 
contractual life (years)
–
0.3
–
8.4
–
1.7
–
7.9
The following table gives the assumptions applied to the options granted in the respective periods shown:
52 weeks to 29 March 2024
52 weeks to 31 March 2023
Grant date
MSP
SAYE
PSP
MSP
SAYE
PSP
Share price at grant date (£)
1.93
1.98
1.93
1.67
1.71
1.67
Exercise price (£)
–
1.51
–
–
1.16
–
Expected volatility
50.16%
52.93%
53.26%
67.61%
62.69%
55.03%
Option life (years)
10
3
3
10
3
3
Expected life (years)
2.75
3.5
3
2.75
3.5
3
Risk free rate
 – 
3.6%
 –
 – 
0.2%
 – 
Expected dividend yield
5.06%
4.95%
–
5.65%
5.28%
–
Probability of forfeiture
33%
44%
–
33%
44%
–
Weighted average fair value of options granted
 1.66 
 0.75 
 1.68 
 1.41 
 0.73 
 1.67 
As the MSP & PSP awards have a nil exercise price, the risk free rate of return does not have any effect on the estimated fair value and therefore 
is excluded from the above table. Expected volatility used is based on historic volatility rates, as historic share price movements over the 
expected lives are broadly in line with the longer term. The average share price during the period was £1.95 (2023: £1.87).
210
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE 
FINANCIAL STATEMENTS

25. Commitments
2024
£m
2023
£m
Capital expenditure: Contracted but not provided
–
0.3
26. Pensions
Employees are offered membership of the Halfords Pension, which is a contract-based plan, where each member has their own individual 
pension policy, which they monitor independently. The costs of contributions to the scheme are charged to the income statement in the period 
that they arise. The contributions to the scheme for the period amounted to £6.8m (2023: £10.1m).
In accordance with Government initiatives, Halfords operates an automatic enrolment process with regards to its pension arrangements. 
Employees who are aged between 22 and state pension age, earn more than £10,000 a year, and work in the UK, are automatically enrolled into 
the Group pension arrangement. Employees retain the right to withdraw from this pension arrangement; however, election of this choice must 
be made.
27. Contingent liabilities
The Group’s banking arrangements include the facility for the bank to provide a number of guarantees in respect of liabilities owed by the Group 
during the course of its trading. In the event of any amount being immediately payable under the guarantee, the bank has the right to recover the 
sum, in full, from the Group. The total amount of guarantees in place at 29 March 2024 amounted to £nil (2023: £0.4m).
The Group’s banking arrangements are subject to a netting facility, whereby credit balances may be offset against the indebtedness of other 
Group companies.
28. Related party transactions
The Group’s ultimate parent company is Halfords Group plc. A listing of all related undertakings is shown within the financial statements of the 
Company on pages 214 to 220.
Transactions with key management personnel
The key management personnel of the Group comprise the Executive and Non-Executive Directors and the Halfords Limited and Halfords 
Autocentres management boards. The details of the remuneration, long-term incentive plans, shareholdings and share option entitlements of 
individual Directors are included in the Directors’ Remuneration Report on pages 140 to 149. Key management compensation is disclosed in 
Note 4.
Directors of the Company control 0.50% of the ordinary shares of the Company.
29. Off balance sheet arrangements
The Group has no off balance sheet arrangements to disclose as required by S410A of the Companies Act 2006.
30. Prior period adjustment
Supplier arrangements and period end cut-off
On 1 April 2022, Halfords entered into a new arrangement with a third-party logistics provider for wholesale tyre purchasing and distribution 
services. This arrangement, together with the scale of growth in the Autocentres business and increased intercompany transactions between 
the enlarged Group, created significant reconciliation complexity during the period ended 31 March 2023. As a result of this increased 
complexity, errors were identified in the GRNI reconciliations at 31 March 2023. Halfords has performed a full investigation and as a result, 
under-accruals to GRNI have been identified. 
To correct for the error to the Consolidated Statement of Financial Position as at 31 March 2023, Trade and other payables have been increased 
by £7.3m, with a corresponding increase in Cost of sales. The Tax charge for the period ended 31 March 2023 has been reduced by a total of 
£1.4m as a result of this adjustment.
Classification of Merchant and Consumer Finance Fees
During the preparation of the FY24 interim results, inconsistencies were identified in the classification of merchant fees across the group within 
the FY23 Financial Statements. As a result, merchant fees of £2.8m were incorrectly included within Operating expenses instead of Cost of 
sales. 
In addition, further inconsistencies were identified in the measurement of revenue when financing companies provide consumer credit to 
Halfords’ customers. Revenue and Cost of sales were overstated by £1.7m within the FY23 Financial Statements, being the difference between 
retail selling prices and the amounts received from the financing companies.
To correct for these errors in the Consolidated Income Statement for the 52 weeks to 31 March 2023, Revenue has been reduced by £1.7m, 
Cost of Sales has been increased by £1.1m and Operating expenses have been reduced by £2.8m. There has been no impact on profit after tax 
or net assets.
 halfords.annualreport2024.com
211
FINANCIAL 
STATEMENTS 

30. Prior Period Adjustment continued
The total impact of the above prior period adjustment on the results for the 52 weeks to 31 March 2023 is as follows:
Consolidated Income Statement
52 weeks to 
31 March 2023
Originally reported
£m
Supplier 
arrangements
£m
Merchant and 
consumer 
finance fees
£m
Discontinued 
operations 
(note 10)
£m
52 weeks to 
31 March 2023
Restated
£m
Revenue
1,593.5
–
(1.7)
(19.1)
 1,572.7
Cost of sales
(808.2)
(7.3)
(1.1)
12.6
(804.0)
Gross profit
785.3
(7.3)
(2.8)
(6.5)
 768.7
Operating expenses
(729.7)
–
2.8
9.3
(717.6)
Results from operating activities
55.6
(7.3)
–
2.8
51.1
Net finance expense
(12.1)
–
–
–
(12.1)
Profit before income tax
43.5
(7.3)
–
2.8
39.0
Income tax expense
(9.5)
1.4
–
–
(8.1)
Profit / (loss) after tax from continuing 
operations
34.0
(5.9)
–
2.8
30.9
Loss after tax from discontinued 
operations
–
–
–
(2.8)
(2.8)
Profit for the period attributable to 
equity shareholders
34.0
(5.9)
–
–
28.1
Consolidated Statement of Financial Position
52 weeks to 
31 March 2023
Originally reported
£m
52 weeks to 
31 March 2023
Restated
£m
Supplier 
arrangements
£m
Trade and other payables
(355.0)
(7.3)
(362.3)
Current tax liabilities
(5.0)
1.4
(3.6)
Total current liabilities
(462.2)
(5.9)
(468.1)
Net current liabilities
(18.4)
(5.9)
(24.3)
Total liabilities
(784.3)
(5.9)
(790.2)
Net assets
562.8
(5.9)
556.9
Retained earnings
362.0
(5.9)
356.1
Total equity
562.8
(5.9)
556.9
Consolidated Statement of Cash Flows
52 weeks to 
31 March 2023
Originally reported
£m
52 weeks to 
31 March 2023
Restated
£m
Supplier 
arrangements
£m
Profit after tax for the period
34.0
(5.9)
28.1
Income tax expense
9.5
(1.4)
8.1
Increase in trade and other payables
32.0
7.3
39.3
Net cash from operating activities
154.8
–
154.8
Earnings Per Share
52 weeks to 
31 March 2023
Originally reported
52 weeks to 
31 March 2023
Restated
Basic earnings per ordinary share
15.6p
12.9p
Diluted earnings per ordinary share
15.0p
12.4p
Basic earnings per ordinary share before non-underlying items
18.8p
16.1p
Diluted earnings per ordinary share before non-underlying items
18.0p
15.4p
212
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE 
FINANCIAL STATEMENTS

30. Prior Period Adjustment continued
Investment in own shares
During the preparation of the financial statements for the 52 week period ended 29 March 2024 the Group identified an error relating to the 
transfer of the cost of shares in excess of their exercise price on the exercise of share options by employees under the Group’s share based 
payment arrangements (see Note 24 for further details).
To correct for this error in these financial statements the following adjustments have been made:
•	 The cumulative impact on periods ending on or before 1 April 2022 has been recognised within the opening balances in the consolidated 
statement of changes in equity as at 1 April 2022, resulting in a decrease in Investment in own shares of £8.3m with a corresponding 
decreased in Retained earnings.
•	 Share options exercised within the consolidated statement of changes in equity for the 52 week period ending 31 March 2023 have been 
restated resulting in a £2.5m decrease in the amount attributable to investment in own shares and a corresponding increase in Retained 
earnings.
As a result of the above adjustments the closing balances as at 31 March 2023 in the consolidated statement of changes in equity 
and consolidated statement of financial position have been restated resulting in a £10.8m decrease in Investment in own shares and a 
corresponding decrease in Retained earnings.
 halfords.annualreport2024.com
213
FINANCIAL 
STATEMENTS 

Notes
29 March
2024
£m
31 March
2023
£m
Fixed assets
Investments
4
 817.6 
 813.8 
Current assets
Debtors falling due after than one year
5
 55.7
 127.2 
Debtors falling due within one year
5
 – 
 4.8 
Cash at bank and in hand
6
 1.2 
 2.6 
 56.9
 134.6 
Creditors: amounts falling due within one year
7
(402.1)
(405.4)
Net current liabilities
(345.2)
(270.8)
Creditors: amounts falling due after more than one year
7
(19.6)
(33.8) 
Net assets
 452.8
509.2 
Capital and reserves
Called up share capital
9
 2.2 
 2.2 
Share premium account
9
 212.4 
 212.4 
Investment in own shares
9
(1.0)
(1.9)
Capital redemption reserve
9
 0.3 
 0.3 
Profit and loss account
9
 238.9
 296.2 
Total shareholders' funds
 452.8
 509.2 
The notes on pages 216 to 220 form part of the Company’s financial statements.
The Company has elected to prepare its financial statements under FRS 101 and the accounting policies are outlined on page 216.
The Company made a loss before dividends paid for the period of £32.5m (52 week period to March 2023: £1.2m loss). The Directors 
have taken advantage of the exemption available under section 408 of the Companies Act 2006 and have not presented a profit and loss 
account for the Company alone.
The financial statements on pages 214 to 220 were approved by the Board of Directors on 17 July 2024 and were signed on its behalf by:
Jo Hartley
Chief Financial Officer
Company number: 04457314
214
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
COMPANY 
BALANCE SHEET

Share 
capital
£m
Share 
premium
£m
Investment 
in own 
shares
£m
Capital 
redemption
£m
Retained 
earnings
£m
Total
£m
At 1 April 2022
 2.2 
 212.4 
(11.6)
 0.3 
 325.3 
 528.6 
Restatement*
–
–
8.3
–
(8.3)
–
At 1 April 2022 restated
2.2
212.4
(3.3)
0.3
317.0
528.6
Loss for the period
 – 
 – 
 – 
 – 
(1.2)
(1.2)
Purchase of own shares
 – 
 – 
(1.5)
 – 
 – 
(1.5)
Share options exercised – restated*
 – 
 – 
 2.9
 – 
(2.5) 
 0.4 
Share based payments
 – 
 – 
 – 
 – 
 2.4 
 2.4 
Dividends paid
 – 
 – 
 – 
 – 
(19.5)
(19.5)
At 31 March 2023
 2.2 
 212.4 
(1.9)
 0.3 
 296.2 
 509.2 
Loss for the period
 – 
 – 
 – 
 – 
 (32.5) 
(32.5)
Purchase of own shares
 – 
 – 
(10.2)
 – 
 – 
(10.2)
Share options exercised
 – 
 – 
 11.1
 – 
(6.9) 
 4.2 
Share based payments
 – 
 – 
 – 
 – 
 3.8 
 3.8 
Dividends paid
 – 
 – 
 – 
 – 
(21.7)
(21.7)
At 29 March 2024
 2.2 
 212.4 
(1.0)
 0.3 
238.9
452.8
*	
See note 30 to the Group financial statements for further details.
 halfords.annualreport2024.com
215
FINANCIAL 
STATEMENTS 
COMPANY STATEMENT OF  
CHANGES IN SHAREHOLDERS’ EQUITY 

Accounting convention
The accounts of the Company are prepared for the period up to the Friday closest to 31 March each year. Consequently, the financial 
statements for the current period cover the 52 weeks to 29 March 2024, whilst the comparative period covered the 52 weeks to 31 March 
2023. The accounts are prepared under the historical cost convention, except where Financial Reporting Standards require an alternative 
treatment in accordance with applicable UK accounting standards and, specifically, in accordance with the accounting policies set out below. 
The principal variation to the historical cost convention relates to share-based payments.
Basis of preparation
The Company financial statements of Halfords Group plc are prepared on a going concern basis for the reasons set out in the Going Concern 
and Viability Statement on pages 90 and 91, and under the historical cost convention.
The Company meets the definition of a qualifying entity under Financial Reporting Standard 100 (FRS 100). The Company financial statements 
have been prepared in accordance with FRS 101 “Reduced Disclosure Framework” and has ceased to apply all UK Accounting Standards issued 
prior to FRS 100. Therefore, the recognition and measurement requirements of the international accounting standards have been applied, with 
amendments, where necessary, in order to comply with Companies Act 2006.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to share-
based payments, financial instruments, standards not yet effective, impairment of assets and related party transactions. Where required, 
equivalent disclosures are given in the Group financial statements.
As permitted by Section 408 of the Companies Act 2006, no profit or loss account is presented for this Company. Additionally, no cash flow 
statement is presented as permitted by FRS 101.8 (h). The loss for the year is disclosed in Note 1 to the financial statements.
Employee Benefit Trusts (“EBTs”) are consolidated on the basis that the parent has control, thus the assets and liabilities of the EBT are included 
on the Company balance sheet and shares held by the EBT in the Company are presented as a deduction from equity.
In the current period, the terminology used to describe cash holdings in the Company Balance Sheet has been updated to ensure full 
compliance with the Companies Act. The balance previously reported as ‘Cash and cash equivalents’ has been revised to ‘Cash at bank and in 
hand’. This is a change in presentation only and there has been no impact on the previously reported figures in the Company balance sheet as at 
31 March 2023.
Share-based payments
The Company operates a number of equity-settled, share-based compensation plans that are awarded to employees of the Company’s 
subsidiary undertakings.
In accordance with FRS 101 “Group and treasury share transactions”, the fair value of the employee services received under such schemes is 
recognised as an expense in the subsidiary undertaking’s financial statements, which benefit from the employee services. The Company has 
recognised the fair value of the share-based payments as an increase to equity with a corresponding adjustment to investments.
Fair values are determined using appropriate option pricing models. The total fair value recognised is adjusted to reflect the number of awards 
for which the related service and non-market vesting conditions are expected to be met, such that the amount, ultimately, recognised as an 
expense is based on the number of awards that do meet the related service and non-market performance conditions at the vesting date.
At each balance sheet date, the Company revises its estimates of the number of share incentives that are expected to vest. The impact of 
the revision of original estimates, if any, is recognised as an adjustment to equity, with a corresponding adjustment to investments over the 
remaining vesting period.
Investments
Investments in subsidiary undertakings are stated at the original cost of the investments. Provision is made against cost where, in the opinion of 
the Directors, the value of the investments has been impaired.
The investments have been tested for impairment using the present value of the expected future cash flows arising from the underlying 
subsidiaries and the carrying value of the investments. The forecast cash flows and the key assumptions used in the value in use calculations 
are subject to inherent estimation uncertainty. Details of key assumptions and sensitivities are set out in note 12 to the Group’s financial 
statements.
Dividends
Final dividends are recognised in the Company’s financial statements in the period in which the dividends are approved by shareholders. Interim 
equity dividends are recognised in the period they are paid.
216
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
ACCOUNTING  
POLICIES

1. Profit and loss account
The Company made a loss before dividends paid for the 52 week period to 29 March 2024 of £32.5m (52 week period to 31 March 2023: £1.2m 
loss) including a £35.0m expense relating to the recognition of a provision for expected credit losses on an intercompany loan (Note 5). The 
Directors have taken advantage of the exemption available under section 408 of the Companies Act 2006 and not presented a profit and loss 
account for the Company alone.
2. Fees payable to the auditors
Fees payable by the Group to BDO LLP and their associates during the current and prior period are detailed in note 3 to the Group 
financial statements.
3. Staff costs
The Company has no employees other than the Directors. Full details of the Directors remuneration and interests, including those details 
required by Schedule 5, are set out in the Remuneration Report on pages 140 to 149, which forms part of the audited information.
4. Investments
£m
Shares in Group undertaking
Cost
As at 31 March 2023
 813.8 
Additions – share based payments
3.8
At 29 March 2024
817.6
The investments represent shares in the Company’s subsidiary undertaking as at 29 March 2024 and the fair value of share-based 
compensation plans that are awarded to employees of the Company’s subsidiary undertakings.
The Company’s investments are subject to an impairment review when there are indicators of impairment. In the current period the Company 
has identified indicators of impairment and an impairment assessment has been performed. The impairment assessment is based on 
value-in-use calculations prepared for the annual impairment assessments for Goodwill allocated to the Retail and Autocentres CGU groups, 
see note 12 to the Group financial statements for more details. The impairment assessment showed the value-in-use of the Company’s 
investments was in excess of their carrying value.
The related undertakings of the Company at 29 March 2024 are as follows:
Incorporated in
Ordinary shares 
percentage owned %
Principal activities
Halfords Group Holdings Limited*
United Kingdom
100
Intermediate holding 
company
* 	 Registered in England and Wales. Registered office: Icknield Street Drive, Washford West, Redditch, Worcestershire, B98 0DE
Subsidiary undertaking
Principal activity
% Ownership 
of ordinary 
equity shares
Subsidiaries registered in England & Wales, with a registered address of: 
Icknield Street Drive, Washford West, Redditch, Worcestershire, B98 0DE
Avayler Holdings Limited*
Intermediate holding company
100
Avayler Trading Limited*
Business and domestic software 
development
95
Axle Group Limited*
Intermediate holding company
100
Boardman Bikes Limited*
Non-trading
100
Boardman International Limited*
Non-trading
100
Capital Tyres (Northallerton) Limited*
Non-trading
100
Fit4Fleet Holdings Limited*
Intermediate holding company
100
Fit4Fleet Limited*
Car servicing
100
Giant (Wales) Limited*
Non-trading
100
Halfords Autocentres Developments Limited*
Dormant
100
Halfords Autocentres Limited*
Car servicing
100
Halfords IP Management Limited*
Dormant
100
Halfords Limited*
Retailing of auto parts, accessories, 
cycles and cycle accessories
100
Halfords Vehicle Management Limited*
Dormant
100
 halfords.annualreport2024.com
217
FINANCIAL 
STATEMENTS 
NOTES TO THE 
FINANCIAL STATEMENTS

Subsidiary undertaking
Principal activity
% Ownership 
of ordinary 
equity shares
Lodge Tyre Company Limited*
Car servicing
100
LTC Trading Holdings Limited*
Intermediate holding company
100
National Tyre and Autofit Limited*
Dormant
100
National Tyre Service Limited*
Car servicing
100
NW Autocentres Limited*
Dormant
100
Performance Cycling Holdings Limited*
Intermediate holding company
100
Performance Cycling Limited*
Retailing of cycles and cycle 
accessories
100
Stop n Steer Limited*
Dormant
100
The Marsham Tyre Company Limited*
Dormant
100
Tredz Limited*
Non-Trading
100
Tyre and Autofit Limited*
Dormant
100
Universal Tyre Company (Deptford) Limited*
Car servicing
100
W.Briggs & Company Limited*
Dormant
100
Wheelies Direct Limited*
Dormant
100
Subsidiary registered in Scotland, with a registered address of: 
The Ca’D’Oro, 45 Gordon Street, Glasgow, Scotland, G1 3PE
Acorn (Paisley) Limited*
Dormant
100
Axle Group Holdings Limited*
Intermediate holding company
100
Birkenshaw Tyre Company Limited*
Dormant
100
Constant Price Monitor Limited*
Car servicing
100
McConechy’s Tyre Service Limited *
Car servicing
100
McConechy’s Tyres Services Holdings Limited*
Intermediate holding company
100
Stepgrades Motor Accessories Limited*
Non-Trading
100
Strathclyde Tyre Services Limited *
Dormant
100
ULM Service Limited*
Car servicing
100
Viking International Limited*
Dormant
100
Subsidiary registered in the Republic of Ireland, with a registered address of: 
c/o Ogier Leman LLP, Ground Floor, Investment House, 8_24 Percy Place, Dublin, 
Dublin 4, D04 P5K3, Ireland
Halfords (Ireland) Limited*
Dormant
100
Subsidiary registered in Delaware USA, with a registered address of: 
c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808
Halfords Software Services Division LLC
Software as a Service provider
100
Other equity investment, registered in Northern Ireland,  
with a registered address of: 
22 Derryall Road, Portadown, Craigavon, Northern Ireland BT62 1PL
Hamilton Internet Services Limited*
E–Commerce
0.06
The only subsidiaries to trade during the year were Halfords Limited, Halfords Autocentres Limited, Performance Cycling Limited, McConnechy’s Tyre Services Limited, The Universal 
Tyre Company (Deptford) Limited, National Tyre Service Limited, Stepgrade Motor Accessories Limited, Avayler Trading Limited, Halfords Software Services Division LLC, Constant Price 
Monitor Limited, Lodge Tyre Company Limited, Capital Tyres (Northallerton) Limited and ULM Services Limited.
* Shares held indirectly through subsidiary undertakings
During the period Birkenshaw Distributors Limited was sold, see details of this disposal in note 10 to the Group financial statements.
During the period Capital Tyres (Northallerton) Limited was acquired, see details of the acquisition in note 11 to the Group financial statements.
4. Investments continued
218
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE 
FINANCIAL STATEMENTS

 5.  Debtors
2024
£m
2023
£m
Falling due within one year:
Other Debtors
–
4.8
Falling due after more than one year:
Amounts owed by Group undertakings
55.7
127.2
55.7
132.0
Amounts owed by Group undertakings are repayable according to the terms of an intercompany loan agreement. The loans mature on 
4 December 2025 and bear interest at market rates based on SONIA plus a margin of 2%. Amounts owed by Group undertakings have been 
assessed in line with IFRS 9 and as at 29 March 2024 a provision for expect credit losses of £35.0m has been recognised (2023: Nil).
6. Cash at bank and in hand
2024
£m
2023
£m
Falling due within one year:
Cash at bank and in hand
1.2
2.6
1.2
2.6
£0.3m (2023: £2.4m) of the Company’s cash at bank and in hand included in the balance sheet is held by the trustee of the Company’s 
Employee Benefit Trust in relation to the share scheme for employees. Therefore, these funds are restricted and are not available to be 
circulated on demand.
7. Creditors
2024
£m
2023
£m
Falling due within one year:
Amounts owed to Group undertakings
401.8
405.3
Accruals and deferred income
0.3
0.1
402.1
405.4
Falling due after more than one year:
RCF drawdown (Note 8)
19.6
33.8
19.6
33.8
Amounts owed to Group undertakings are repayable on demand and have, therefore, been classified as due within one year, although it is not 
expected that all of this amount will be repaid within 12 months of the balance sheet date.
8. Borrowings
2024
£m
2023
£m
Drawdown on RCF
 19.6 
 33.8 
 19.6 
 33.8 
The above borrowings are stated net of unamortised issue costs of £0.4m (2023: £1.2m).
The Company’s borrowing facilities are detailed in note 18 of the Group’s financial statements.
 halfords.annualreport2024.com
219
FINANCIAL 
STATEMENTS 

9. Equity share capital
Ordinary shares of 1p each:
2024
Number of 
shares
2024
£000
2023
Number of 
shares
2023
£000
Allotted, called up and fully paid
218,928,736
2,189
218,928,736
2,189
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings 
of the Company. All shares rank equally with regard to the Company’s residual assets.
In total the Company received proceeds of £4.2m (2023: £0.4m) from the exercise of share options. During the period the Company purchased 
£10.2m (2023: £1.5m) of its own shares.
Potential issue of ordinary shares
The Company has a number of employee share option schemes. Further information regarding these schemes can be found in Note 24 of the 
Group’s financial statements.
Investment in own shares
At 29 March 2024 the Company held in Trust 502,138 (2023: 973,212) of its own shares with a nominal value of £5,021 (2023: £9,732). 
The Trust has waived any entitlement to the receipt of dividends in respect of its holding of the Company’s ordinary shares. The market value of 
these shares at 29 March 2024 was £0.8m (2023: £1.7m). In the current period 5,176,875 (2023: 1,000,000) were repurchased and transferred 
into the Trust, with 5,647,949 (2023: 1,478,490) reissued on exercise of share options.
10. Share-based payments
Share based payments during the period were £3.8m (2023: £2.4m) bringing the balance at 29 March 2024 to £43.5m (2023: £38.9m).
11. Profits available for distribution
Distributable reserves
£m
As at 31 March 2023
268.6 
Restatement*
(10.8)
As at 31 March 2023 restated
257.8
Loss for the period
(32.5)
Share options exercised
(6.9)
Dividends paid
(21.7)
At 29 March 2024
196.7
*	
See Note 30 to the Group financial statements for more details.
The loss for the period includes a £35.0m expense relating to the recognition of a provision for expected credit losses on an intercompany loan 
(Note 5). 
12. Reserves
The Company settled dividends of £21.7m (2023: £19.5m) in the period, as detailed in note 8 to the Group’s financial statements.
13. Related party disclosures
Under FRS 101 “Related party disclosures”, the Company is exempt from disclosing related party transactions with entities which it wholly owns.
14. Contingent liabilities
The Group’s banking arrangements include the facility for the bank to provide a number of guarantees in respect of liabilities owed by the Group 
during the course of its trading. In the event of any amount being immediately payable under the guarantee, the bank has the right to recover the 
sum in full from the Group. The total amount of guarantees in place at 29 March 2024 amounted to £nil (2023: £0.4m).
The Company’s banking arrangements are subject to a netting facility whereby credit balances may be offset against the indebtedness of other 
Group companies.
15. Off Balance sheet arrangements
The Company has no off balance sheet arrangements to disclose as required by S410A of the Companies Act 2006.
220
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
NOTES TO THE 
FINANCIAL STATEMENTS

FINANCIAL 
STATEMENTS 
221
 halfords.annualreport2024.com

SHAREHOLDER 
INFORMATION
CONTENTS
Five-year Record
224
Glossary of Alternative Performance 
Measures
225
Company Information
226
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
222

SHAREHOLDER 
INFORMATION
 halfords.annualreport2024.com
223

52 weeks
to
27 March
2020*
£m
52 weeks
to
2 April
2021
(audited)
£m
52 weeks
to
1 April
2022
(audited)
£m
52 weeks
to
31 March
2023
Restated**
(audited)
£m
52 weeks
to
29 March
2024
(audited)
£m
Revenue
 1,142.4 
 1,292.3 
 1,382.4 
 1,574.4 
 1,696.5 
Cost of sales
(558.4)
(636.0)
(660.7)
(802.9)
(873.9)
Gross profit
 584.0 
 656.3 
 721.7 
 771.5 
 822.6 
Operating expenses
(513.5)
(541.8)
(620.6)
(712.6)
(766.4)
Operating profit before non-underlying items 
 70.5 
 114.5 
 101.1 
 58.9 
56.2 
Non-underlying operating expenses
(34.2)
(35.0)
 6.8 
(7.8)
(4.3)
Operating profit
 36.3 
 79.5 
 107.9 
 51.1 
 51.9 
Net finance costs
(13.6)
(15.0)
(11.3)
(12.1)
(13.1)
Underlying Profit Before Tax **
 56.9 
 99.5 
 89.8 
 46.8 
 43.1 
Non-recurring operating expenses
(34.2)
(35.0)
 6.8 
(7.8)
(4.3)
Non-recurring finance costs
 – 
 – 
 – 
– 
–
Profit before tax
 22.7 
 64.5 
 96.6 
 39.0 
 38.8 
Taxation
(6.9)
(17.4)
(17.2)
(9.2)
(10.3)
Taxation on non-underlying items
 5.0 
 6.1 
(1.7)
 1.1 
0.5 
Profit from continuing operations
 20.8 
 53.2 
 77.7 
 30.9 
 29.0 
Loss after tax from discontinued operations
 – 
 – 
 – 
(2.8)
(12.1)
Profit attributable to equity shareholders
 20.8 
 53.2 
 77.7 
 28.1 
16.9 
Basic earnings per share
10.6p
27.1p
37.9p
12.9p
7.8p
Basic earnings per share before non-underlying items
25.4p
41.7p
35.5p
16.1p
12.7p
Weighted average number of shares
197.0m
197.1m
204.7m
217.4m
217.4m
* 	 The statutory 53-week period to 3 April 2020 comprises results that are not comparable to the 52 weeks periods reported in other years.  
To provide a more meaningful comparison, the above tables include the unaudited pro forma 52 weeks to 27 March 2020. 
** 	 Please see note 30 for further details.
224
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
FIVE-YEAR 
RECORD

In the reporting of financial information, the Directors have adopted 
various Alternative Performance Measures (“APMs”), previously 
termed as ‘Non-GAAP measures’. APMs should be considered 
in addition to IFRS measurements, of which some are shown on 
page 170. The Directors believe that these APMs assist in providing 
useful information on the underlying performance of the Group, 
enhance the comparability of information between reporting periods, 
and are used internally by management to measure the Group’s 
performance.
The key APMs that the Group focuses on are as follows:
1.	Like-for-like (“LFL”) sales represent revenues from stores, centres 
and websites that have been trading for at least a period (but 
excluding prior year sales of stores and centres closed during the 
period) at constant foreign exchange rates.
2.	Underlying EBIT are results from operating activities from 
continuing operations before non-underlying items. Underlying 
EBITDA further removes Depreciation and Amortisation. 
FY24
£m 
FY23
Restated*
£m 
Underlying EBIT*
56.2
58.9
Depreciation & amortisation
127.2
123.6
Underlying EBITDA*
183.4
182.5
*	
Please see note 30 for further details.
3.	Underlying Profit Before Tax is Profit before income tax and non-
underlying items from continuing operations as shown in the Group 
Consolidated Income Statement.
FY24
£m 
FY23
£m 
Underlying profit before tax from 
continuing operations
43.1
46.8
Underlying loss before tax from 
discontinued operations
(7.0)
(2.6)
Underlying profit before tax
36.1
44.2
*	
Please see note 30 for further details.
4.	Underlying Earnings Per Share is Profit after income tax before 
non-underlying items as shown in the Group Consolidated Income 
Statement, divided by the number of shares in issue.
5.	Net Debt is current and non-current borrowings, including lease 
debt, less cash and cash equivalents, both in-hand and at bank, as 
shown in the Consolidated Statement of Financial Position.
FY24
£m 
FY23
£m 
Cash & cash equivalents
13.3
32.2
Borrowings – current
(80.9)
(77.6)
Borrowings – non-current
(247.7)
(303.3)
Net cash/(debt)
(315.3)
(348.7)
*	
Please see note 30 for further details.
6.	Net Debt to Underlying EBITDA ratio is represented by the ratio of 
Net Debt to Underlying EBITDA (both of which are defined above).
7.	Adjusted Operating Cash Flow is defined as net cash from 
operating activities, plus impairment of plant, property and 
equipment and right of use assets, foreign exchange movements 
and income tax; as reconciled below. 
FY24
£m 
FY23
Restated*
£m 
Net cash from operating activities – 
continuing operations
177.9
150.6
Add back:
Impairment of property, plant and 
equipment and right of use asset
(2.8)
 1.1 
Foreign exchange movement
(1.2)
8.0
Income tax paid
11.7
4.7
Adjusted Operating Cash Flow*
185.6
164.4
*	
Please see note 30 for further details.
8.	Free Cash Flow is defined as Adjusted Operating Cash Flow (as 
defined above) less capital expenditure, net finance costs, taxation, 
exchange movement, lease payments, and arrangement fees on 
loans; as reconciled below.
FY24
£m 
FY23
Restated*
£m 
Adjusted Operating Cash Flow 
185.6
164.4
Capital expenditure 
(45.6)
(54.5)
Net finance costs 
(3.2)
(4.4)
Taxation 
(11.7)
(4.7)
Supplier financing
(4.1)
(0.8)
Exchange movement 
 1.2 
(8.0)
Lease Payments
(92.8)
(89.3)
Free Cash Flow* 
 29.4
2.7
*	
Please see note 30 for further details.
 halfords.annualreport2024.com
225
SHAREHOLDER 
INFORMATION
GLOSSARY OF ALTERNATIVE 
PERFORMANCE MEASURES

Financial Calendar
Friday 9 August 2024
Final Dividend Record Date
Friday 6 September 2024
Annual General Meeting
Friday 13 September 2024
Final Dividend Payment Date
Registered Office
Halfords Group plc
Icknield Street Drive
Washford West 
Redditch
Worcestershire
B98 0DE
Registrars
Link Group
10th Floor
Central Square
29 Wellington Street
Leeds
LS1 4DL
Joint Brokers
Investec plc
30 Gresham Street
London
EC2V 7QP
Peel Hunt LLP
100 Liverpool Street
London
EC2M 2AT
Auditor
BDO LLP
55 Baker Street
London
W1U 7EU
Solicitors
Clifford Chance LLP
10 Upper Bank Street
London
E14 5JJ
226
HALFORDS GROUP PLC Annual Report and Accounts for the period ended 29 March 2024
COMPANY 
INFORMATION

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