Halfords has announced the appointment of Henry Birch as its new chief executive officer, replacing Graham Stapleton who is stepping down after seven years leading the motoring and cycling retailer.

Birch, the former chief executive officer of Very Group, takes the helm with immediate effect as Stapleton concludes his tenure during which he transformed Halfords from a traditional retail business into what he described as an "omnichannel motoring services super-specialist".

The leadership change comes as Halfords reported its pre-tax profits for the year will be at the upper end of its £32m to £37m guidance range, following what the company called a "strong finish" to the financial year ending 28 March.

Group like-for-like sales rose 2.3 per cent across the 52-week period, despite strong comparative figures from the previous year of 5 per cent. The retail division saw a 1.7 per cent increase in like-for-like sales, while the autocentres business delivered a 3.7 per cent rise against comparatives of 10.7 per cent.

Stapleton said: "This is a performance to be proud of, mitigating more than £30m of inflation in what continued to be a very challenging trading environment in FY25. I want to thank every single Halfords colleague for their hard work in achieving a significantly stronger result than we anticipated at the start of the financial year."

During Stapleton's leadership, Halfords' annual revenues grew from £1.1bn to £1.7bn, with more than half of group sales now service-related, compared to 24 per cent in the 2019 financial year.

Keith Williams, chair of Halfords, commented: "Graham has transformed the Halfords business to make it fit for the future, leading it through a challenging period including the Covid pandemic and a global macroeconomic slowdown. On behalf of the Board I would like to thank him for his dedication and commitment to the business throughout his tenure."

The company faces ongoing economic challenges, including a £23m rise in labour costs resulting from increases in the minimum wage and National Insurance following the autumn budget. However, Halfords stated it expects to mitigate "the entirety of the direct inflationary impact" in the 2026 financial year through a comprehensive business review that has identified opportunities in pricing strategy and further buying and cost efficiencies.

Birch acknowledged the difficulties ahead, saying: "While the current challenging consumer and economic outlook appears unlikely to subside in the short-term, Graham is leaving behind a business that is well-positioned for success in the years ahead and I look forward to building on these strong foundations to generate long-term value for all our stakeholders."

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