Halfords Group shares climbed 16% on Thursday after the UK retailer reported a return to profitability, underpinned by accelerating demand for its motor repair and garage services.
The market reaction underscores a structural shift in the company's business model, moving away from pure retail parts sales toward higher-margin service operations.
The retailer, which operates a chain of bicycle and car parts stores, announced that its results are tracking positively, driven by robust growth in its garage and service operations.
Management highlighted that Britain's ageing car stock presents a significant opportunity for continued expansion in the repair sector, as older vehicles require more frequent maintenance and servicing.
This development marks a notable turnaround for the group, which has faced headwinds in its traditional retail segments.
The strong performance in the garage business suggests that the strategic focus on services is resonating with consumers and improving the company's overall financial health.