The Funds improve in employer Nationwide Insurance coverage contributions could pressure Halfords to up the price of automobile repairs at its community of Autocentres.
It mentioned adjustments to the Nationwide Minimal Wage and the elevated NI prices will add £23m to its direct labour prices within the 2026 monetary yr. The corporate has 12,000 staff.
It added that there could also be additional inflation in the price of managed companies because of the measures introduced within the UK Funds.
“The impact of the UK Funds on client behaviour and therefore the trajectory of our end-markets is unclear.
“We have now a higher capability to mitigate headwinds within the extra needs-based Autocentres servicing enterprise, the place pricing energy is larger.
Within the six months to 27 September, Autocentres (ex-Avayler) delivered underlying EBIT of £9.1m in comparison with £11.4m final time as challenges within the tyre market and wage inflation. Turnover fell -2.3% to £348.7m.
Halfords CEO Graham Stapleton mentioned: “I’m actually happy with the progress we now have delivered within the first half. In opposition to ongoing headwinds, we now have continued to concentrate on controlling the controllables, with a disciplined method to value and margin optimisation.
“We’re significantly excited by the excellent outcomes we’re seeing from our Fusion Motoring Providers programme, which creates a stronger connection between our Retail shops and Autocentres in a city to fulfil all our clients’ motoring wants.
“Now live across 22 locations, these motoring services locations are delivering phenomenal returns with a significant uplift in both sales and profit. Given the strength of these results, we are now targeting 40 Fusion sites this year.”
