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Recruitment roadblock reduces Halfords profitability, but tyres continue to drive growth

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Halfords

Halfords Group plc (Halfords)’s third-quarter 2023 trading update for the 13 weeks to 30 December 2022 show that group revenue grew 38.3 per cent and like-for-like group sales were up 12.6 per cent compared with 2020 levels. Other headlines included the news that Halfords’s services business represents 50.3 per cent of group revenue, and B2B, which includes the Avayler system 28.2 per cent. At the same time, Halfords hailed its “strong Commercial Fleet performance”, with this part of the business growing 138 per cent year-on-year. However, the company reduced its full-year 2023 underlying profit before tax (PBT) guidance from £60 million to £50 million.

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ATU chooses Avayler software for German mobile tyre service

Mobivia

Following earlier reports on 25 November 2022, Avayler, Halfords’ B2B software arm has confirmed that ATU has selected the Avayler mobile solution to support its new mobile servicing and tyre fitting division. Avayler Mobile will initially be rolled out in Munich as part of ATU’s “Mobile Workshop” pilot project, with further plans for expansion throughout Germany.

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Avayler wins ATU contract in Germany

Halfords Group reports that its Avayler software is not only driving the group’s internal financial performance, but is also expanding into Europe as a product in its own right. Specifically, Halfords reports that Avayler has signed a contract to supply its services to well-known German autocentre chain ATU, which is part of the Mobivia group. According to Halfords, the roll-out is set to start in Germany through ATU’s mobile fleet.

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Halfords sells its Avayler software to American Tire Distributors (ATD)

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ATD

Halfords has entered the B2B software market by making American Tire Distributors Inc. (ATD) the first customer of Halfords’ Avayler proprietary software which streamlines “service delivery for companies that operate in multiple locations.” According to Halfords, the Avayler platform will underpin ATD’s operations, supplying tyres to 80,000 garages across the US. ATD will also be the exclusive provider of the Avayler Mobile platform to the North American automotive market. ATD is one of the largest independent suppliers of tyres in the US replacement market and the part owner of Tirebuyer.com (which was established by blackcircles.com founder Mike Welch). No price details associated with the sale of the Avayler software system to ATD have yet been disclosed.

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