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Preliminary Results Announcement
HALFORDS GROWS UNDERLYING EARNINGS THROUGH CORE SALES GROWTH, COST CONTROL AND MARGIN MANAGEMENT
Halfords Group plc, the UK’s leading automotive and leisure products retailer, announces its Preliminary Results for the 53 weeks to 3 April 2009.
Financial Summary
| 2009 53 weeks | 2009 53 weeks | 2009 52 weeks | 2008 52 weeks | |
| Reported | Excl Exceptional1 | Excl Exceptional1 | ||
| Revenue | £809.5m | £809.5m | £794.7m | £797.4m |
| Like-for-like Sales2 | -3.3% | -3.3% | -3.3% | +4.3% |
| Operating Profit | £91.7m | £104.0m | £101.9m | £101.0m |
| Operating Margin | 11.3% | 12.8% | 12.8% | 12.7% |
| Profit Before Tax | £77.5m | £94.4m | £92.4m | £90.2m |
| Basic EPS | 26.6p | 32.5p | 31.8p | 29.3p |
| Net Debt | £176.2m | £169.3m | £164.0m | £181.7m |
Financial Highlights
On a comparable 52-week basis, excluding exceptional items, the Group’s performance is summarised:
- Basic earnings per share 31.8p up 8.5%
- Profit before tax £92.4m up 2.4%
- Operating profit £101.9m up 0.9%, representing 12.8% of sales
- Revenue £794.7m, 0.3% decline with like-for-like sales declining by 3.3%
- Gross margin per cent increased by 160bps year on year
- Net debt at £164.0m (2008: £181.7m) represents 1.3x EBITDA
- Recommended final dividend of 10.90p, making a total of 15.90p per ordinary share (2008:15.10p), up 5.3%
Business Highlights
- Continued strong sales growth in car maintenance and cycling, with improving sales trajectory
- Group gains market share and expands margin in all categories as active trading strategies achieve traction
- Service differentiation continues with strong growth in wefit and werepair jobs, increased by 25% to 1.5m
- Reserve & Collect success drives 90% growth in multi-channel revenue
- Portfolio development continues with 21 new store openings and 26 refurbishments
- Central European rollout commenced with two new stores in the Czech Republic and first Polish store opened in Wroclaw
- Success of Boardman cycle range supports integration of premium brands into superstore format
David Wild, Chief Executive, commented on the results:
“These results demonstrate Halfords’ many strengths. At a time when much of the high street is impacted by the recession, we have delivered an 8.5% increase in underlying earnings per share from solid growth in both market share and margins, driven by our commitment to an unrivalled combination of value and service to our customers.
We continue to strengthen our offer across all categories and see significant opportunities for future growth within the UK business. Our market-leading wefit proposition is attracting new customers who increasingly recognise the outstanding value that this service provides. We continue to manage the business proactively, intervening early to deliver sustainable reductions in operating costs. Progress on halfords.com has been most encouraging and provides future upside. Finally, we have also begun overseas expansion, which in the longer term will further accelerate growth.
We naturally remain cautious given the continued fragility of the economy and consumer confidence. There are however, clear indications that Halfords is well positioned to deliver further earnings growth in the year ahead. The proposed final dividend, is consistent with our progressive policy and reflects the Board’s confidence in the Group’s near and long term prospects.
I would like to thank all Halfords’ colleagues for their continued efforts in this challenging environment.”
Notes:
1. Exceptional items are described in note 4 to the Preliminary
Statement.
2. Like-for-like sales represent revenues from stores trading for
greater than 365 days. Where appropriate, revenues denominated in
foreign currencies have been translated at constant rates of
exchange.
Enquiries:
| Analysts: | |
| Halfords Group plc | |
| Nick Wharton, Finance Director | +44 (0) 1527 513047 |
| Tony Newbould, Investor Relations Officer | +44 (0) 7753 809522 (on the day) |
| +44 (0) 1527 513113 (thereafter) | |
| Media: | |
| Maitland | |
| Neil Bennett | +44 (0) 207 379 5151 |
| Richard Farnsworth | +44 (0) 207 379 5151 |
Forthcoming Newsflow
Halfords will be holding its Annual General Meeting at the Alveston Manor, Clopton Bridge, Stratford upon Avon, Warwickshire CV37 7HP at 12.30 pm on Wednesday, 29 July 2009. The meeting will include a first quarter trading update from the Company that will cover the 13 weeks from 4 April 2009 to 3 July 2009.Notes to Editors:
www.halfords.co.uk
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Halfords Group plc
The Group employs approximately 10,000 staff and sells over 10,000 different product lines, ranging from car parts and cycles through to the latest in-car technology, child seats, roof boxes and outdoor leisure and camping equipment. Halfords' own brands include Ripspeed, for car enhancement and Bikehut, for cycles and cycling accessories, including the Apollo and Carrera brands. Two further premium brands were added during 2008; Boardman cycles and accessories,where Halfords has exclusive UK distribution rights, and URBAN Escape for camping equipment. Operating from 466 stores, including internationally, 22 stores in Republic of Ireland, five stores in the Czech Republic and one in Poland, and 29 smaller format, compact stores Halfords offers a "wefit" service for car parts, child seats, satellite navigation and in-car entertainment systems, and a “werepair” service for cycles.
Cautionary Statement
This report contains certain forward-looking statements with respect to the financial condition, results of operations, and businesses of Halfords Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Halfords Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.
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