Halfords Group
Website:
Halfords Group
Index:
FTSE Small Cap
EPIC: HFD
Supersector:
Retail
Sector:
General Retailers
Subsector:
Specialty Retail
Market Cap:
£314.38M
Payout Frequency: Semi-Annual
Halfords Group Dividend Analysis and Summary
Dividend Declaration (Interim)
- Dividend per share: 3.0p (interim), unchanged year-on-year.
- Ex-dividend date: 11/12/2025.
- Record date: 12/12/2025.
- Payment date: 16/01/2026.
- Policy reaffirmed: dividend cover targeted at 1.5x–2.5x underlying profit after tax.
- Context: FY25 final dividend was 5.8p (up from 5.0p), implying FY25 total DPS of 8.8p including the 3.0p interim.
Financial Support for the Dividend
- Earnings cover: HY26 underlying EPS 7.9p vs. interim DPS 3.0p ? c.2.6x cover at the half-year.
- Cash generation: HY26 free cash flow £27.6m; interim dividend cash cost c.£6–7m is well covered.
- Balance sheet: period-end £18.6m net cash (ex-IFRS 16 leases), improved from £1.3m YoY; committed RCF to April 2029.
- Performance momentum: LfL sales +4.1%, gross margin +200bps to 51.4%, underlying PBT £21.2m (flat YoY).
- Guidance: confident in delivering FY26 underlying PBT in line with consensus (£36.0m–£40.7m); capex guidance maintained at £60–£70m.
Analysis: Sustainability and Growth Trajectory
- Sustainability: The interim is comfortably covered by earnings and free cash flow, supported by margin expansion and disciplined working capital. Net cash (ex-leases) adds resilience.
- Policy alignment: On a full-year view, underlying EPS is likely to be in the low-to-mid teens pence (FY25 underlying EPS was 13.8p), implying total DPS cover broadly within the 1.5x–2.5x policy range if DPS is held around last year’s 8.8p.
- Growth prospects: Interim DPS held flat. Prospects for modest dividend growth hinge on delivering FY26 guidance, cycling recovery durability, and continued execution in services/garages (Fusion rollout, pricing/mix). Management is prioritising investment but keeping a cover-based dividend approach.
- Cash priorities: Capex elevated but guided; M&A is not a near-term priority, which supports ongoing dividend capacity given strong cash conversion.
Structural/Policy Signals
- No demergers or M&A announced; selective closure of a small number of garages continues but is non-structural.
- Capital allocation framework updated: maintain strong balance sheet (net debt/adj. EBITDA ex-leases =0.8x), continue dividends within cover policy, invest in digital/garage network; M&A de-prioritised.
- Leadership changes (new CIO; Chair stepping down at AGM 2026) have no stated impact on dividend policy.
Risks and Flags to Dividend Stability
- Cost inflation: Rising labour and supplier costs lifted operating expenses; cover remains adequate but limits headroom if growth slows.
- Operational execution: Prior warehouse management system issues incurred £3.1m non-underlying costs (now resolved), but closure-related property costs persist while leases unwind.
- End-market exposure: Ongoing weakness in consumer tyres; macro volatility could pressure discretionary retail demand.
- Avayler SaaS: Client ATD Chapter 11 impacted revenue and increased losses; still small but a drag within Autocentres.
- Lease liabilities: Significant IFRS 16 lease commitments reduce flexibility in a downturn, though near-term liquidity is strong.
Read more
Halfords Group Annual Dividend Yield - 6.3%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/12/2024 |
17/01/2025 |
Interim |
3.00p |
GBX |
| 07/08/2025 |
12/09/2025 |
Final |
5.80p |
GBX |
Total (Annual Dividends Per Share):
8.80p
Dividend Yield =
Annual Dividends Per Share (8.80p)
÷ Share Price (139.6p)
= 6.3%
Halfords Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 11/12/2025 |
16/01/2026 |
Interim |
3.0000p |
GBX |
| 07/08/2025 |
12/09/2025 |
Final |
5.80p |
GBX |
| 12/12/2024 |
17/01/2025 |
Interim |
3.00p |
GBX |
| 08/08/2024 |
13/09/2024 |
Final |
5.00p |
GBX |
| 14/12/2023 |
19/01/2024 |
Interim |
3.00p |
GBX |
| 10/08/2023 |
15/09/2023 |
Final |
7.00p |
GBX |
| 15/12/2022 |
20/01/2023 |
Interim |
3.00p |
GBX |
| 11/08/2022 |
16/09/2022 |
Final |
6.00p |
GBX |
| 09/12/2021 |
21/01/2022 |
Interim |
3.00p |
GBX |
| 12/08/2021 |
17/09/2021 |
Final |
5.00p |
GBX |
| 05/12/2019 |
17/01/2020 |
Interim |
6.18p |
GBX |
| 25/07/2019 |
30/08/2019 |
Final |
12.39p |
GBX |
| 13/12/2018 |
18/01/2019 |
Interim |
6.18p |
GBX |
| 26/07/2018 |
31/08/2018 |
Final |
12.03p |
GBX |
| 07/12/2017 |
19/01/2018 |
Interim |
6.00p |
GBX |
| 03/08/2017 |
25/08/2017 |
Final |
11.68p |
GBX |
| 26/01/2017 |
17/02/2017 |
Special |
10.0p |
GBX |
| 15/12/2016 |
20/01/2017 |
Interim |
5.83p |
GBX |
| 04/08/2016 |
26/08/2016 |
Final |
11.30p |
GBX |
| 17/12/2015 |
22/01/2016 |
Interim |
5.66p |
GBX |
| 06/08/2015 |
28/08/2015 |
Final |
11.00p |
GBX |
| 18/12/2014 |
23/01/2015 |
Interim |
5.50p |
GBX |
| 02/07/2014 |
01/08/2014 |
Final |
9.10p |
GBX |
| 18/12/2013 |
24/01/2014 |
Interim |
5.20p |
GBX |
| 03/07/2013 |
02/08/2013 |
Final |
9.10p |
GBX |
| 19/12/2012 |
25/01/2013 |
Interim |
8.00p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
3.000 |
5.000 |
|
GBX |
8.000 |
-20.000 |
| 2023 |
3.000 |
7.000 |
|
GBX |
10.000 |
11.110 |
| 2022 |
3.000 |
6.000 |
|
GBX |
9.000 |
12.500 |
| 2021 |
3.000 |
5.000 |
|
GBX |
8.000 |
-56.910 |
| 2019 |
6.180 |
12.390 |
|
GBX |
18.570 |
1.970 |
| 2018 |
6.180 |
12.030 |
|
GBX |
18.210 |
-34.210 |
| 2017 |
6.000 |
11.680 |
10.000 |
GBX |
27.680 |
61.580 |
| 2016 |
5.830 |
11.300 |
|
GBX |
17.130 |
2.820 |
| 2015 |
5.660 |
11.000 |
|
GBX |
16.660 |
14.100 |
| 2014 |
5.500 |
9.100 |
|
GBX |
14.600 |
2.090 |
| 2013 |
5.200 |
9.100 |
|
GBX |
14.300 |
78.750 |
| 2012 |
8.000 |
|
|
GBX |
8.000 |
|
Halfords Group Dividend Calculator
Halfords Group Dividend Growth
| Dividend Growth (1Y) |
10%
|
| Dividend CAGR (5Y) |
11.97%
|
| Years of Growth |
–
|
| Payout Ratio |
–
|
| Buyback Yield |
3.34%
|
| Shareholder Yield |
9.47%
|
| P/E Ratio (TTM) | – |
|---|
| Forward P/E | 10.71 |
|---|
| P/FCF | 1.99 |
|---|
| Earnings Yield | -10.8% |
|---|
| FCF Yield | 50.24% |
|---|
| ROE | -6.5% |
|---|
| ROCE | 7.17% |
|---|
| Profit Margin | -1.94% |
|---|
| Operating Margin | 2.84% |
|---|
| Gross Margin | 51.66% |
|---|