The scale and shape of Halfords has fundamentally changed. Huge progress has been made in becoming a motoring and service led business, assisted by the strategic focus on growing digital, Services and B2B. Digital has grown to 33.9% of Group 1H21 sales (FY18 17%), helped by combining all the Group’s businesses on one website, under one branding, in a connected ecosystem. Services/B2B accounted for c.50% of Group 1H22 sales (FY18 under 30%) with these revenue streams being less volatile and more sticky. Emerging from the pandemic with stronger financials. The focus on higher returning revenue streams and a restructured cost base means Halfords has a more resilient sales base and a higher sustainable margin structure. Built a unique position in the motoring market. Halfords has successfully scaled Autocentres, doubling the number of motoring service locations to 738, aided by 3 astute acquisitions and using technology to build a competitive advantage. It can uniquely offer a full suite of service/repair across its garages, retail stores and mobile. Halfords is also the only retailer that can offer repairs to all types of electric cars, bikes and scooters. Transformation is far from complete, although most of the infrastructure heavy lifting has been done. Investment continues in a range of strategic initiatives that we believe will drive long term growth, such as motoring price investment, ‘Project Fusion’ trial, the launch of a motoring loyalty programme in March 2022 and leveraging its proprietary Avayler software. Market Valuation (CY22E PE 9.7x) does not reflect HFD’s recovery/growth potential, nor the strength of its cash generation and balance sheet. Halfords is well-positioned to take a greater share of the highly fragmented motor repair market, as well as benefit from a structurally growing cycle market.