Halfords Group PLC (LSE:HFD), the UK's largest motoring and cycling retailer, saw its shares open 11% higher at 148p after the group said full-year underlying profit before tax is expected to come in around the upper end of the consensus range of £36 million to £41.2 million.
Group like-for-like sales grew 4.8% in the year to 3 April 2026, with cycling outperforming motoring within the retail division, posting like-for-like growth of 6.4% against 2.9% for motoring.
Autocentres, the group's garage services arm, delivered like-for-like growth of 5.8%.
The stronger-than-expected profit outcome reflects further gross margin expansion and well-managed costs.
Halfords closed the period in a net cash position.
Trading in March and April has been in line with expectations, despite an uncertain macroeconomic backdrop linked in part to the conflict in the Middle East.
Looking to FY27, the group said it is comfortable with consensus expectations for underlying profit before tax of between £42 million and £48.6 million.
The majority of energy costs and foreign exchange requirements for the coming year are hedged, with freight rates largely contracted in advance, giving the group visibility over near-term input costs.
Chief executive Henry Birch said the results reflect progress from the optimise phase of the group's Fit for the Future strategy, which targets operational excellence and stronger foundations for growth.