Annual Report and Accounts for the Year Ended 30 March 2018

HALFORDS IS A SPECIALIST SERVICE-LED RETAILER, DIFFERENTIATING US FROM OUR COMPETITION.

Halfords is the UK’s leading retailer of motoring, cycling and leisure products and services. Through Halfords Autocentres, it is also one of the UK’s leading independent operators in vehicle servicing, maintenance and repairs.

Group Highlights

+3.7%

Revenue

£m

-5.0%

Underlying profit before tax*

£m

-6.0%

Profit before tax, after non-recurring items

£m

+3.0%

Dividend per ordinary share

pence

-2.3%

Underlying basic earnings per share*

pence

-3.1%

Basic earnings per share, after non-recurring items

pence

59%

of Retail transactions matched to customers

14%

Service-related Retail sales growth

85%

of Halfords.com online orders click & collected

over 70

In-store Retail services across motoring and cycling

0.8x

Net debt to Underlying EBITDA ratio*

12%

Group online sales growth

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Our Integrated Report

This is our fourth 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. While this report focuses on value generation for our shareholders, it also demonstrates how we interact with all of our stakeholders.

Chairman's Statement

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Chief Executive's Statement

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Our Strategy

IN NOVEMBER 2015 WE LAUNCHED THE 'MOVING UP A GEAR' STRATEGY

This strategy was an evolution from the previous 'Getting Into Gear' strategy and comprised five pillars.

Putting Customers in the Driving Seat icon

Putting Customers in the Driving Seat

Service in Our DNA icon

Service in Our DNA

Building on Our Uniqueness icon

Building on Our Uniqueness

Better Shopping Experience icon

Better Shopping Experience

Fit for Future Infrastructure icon

Fit for Future Infrastructure

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Our Marketplace

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Our Business Model

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Corporate Social Responsibility

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Our Principal Risks and Uncertainties

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