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RNS Number : 9999H
Halfords Group PLC
19 July 2012
19 July 2012
Halfords Group plc
First-Quarter FY13 Interim Management Statement
Halfords Group plc, the UK's leading retailer of automotive and
leisure products and services and leading independent operator in
garage servicing and auto repair, today updates the market on its
trading performance for the 13-week period to 29 June 2012:
TOTAL REVENUE
Halfords Group -5.2%
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Retail -7.8%
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Autocentres +14.5%
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LIKE-for-LIKE (LfL) REVENUE
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Halfords Group -5.6%
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Retail -7.5%
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Car Maintenance +1.0%
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Car Enhancement -10.5%
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Leisure -10.5%
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Autocentres +9.2%
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Key Points for the Quarter
Retail
-- A weak start to the quarter with revenue LfL of -12.4% for
the first 8 weeks followed by an improvement in the following 5
weeks (LfL: +0.9%)
-- A solid performance in Car Maintenance with 3Bs fitting
penetration at 27.0% (Q1 FY12: 22.4%) contributing to a 26.9%
growth in Retail service revenues
-- Car Enhancement remains in decline but an encouraging positive LfL performance in Car Audio
-- Cycling and other Leisure revenues materially impacted by the
unseasonal weather conditions with Cycling revenues down 9.6%
-- Good progress in online revenues (+13.0%) with the new fulfilment proposition enhancing the multi-channel offer
-- Q1 gross margins and costs in line with our expectations
Autocentres
-- Pleasing performance with further strong growth in revenue and market share
-- Tyre fitting now represents in excess of 10% of Autocentre revenues
Group
-- Further progress in delivering the long-term strategy;
encouraging feedback from the 3 "laboratory" stores
-- Group remains cash generative with a strong balance sheet
-- The Board intends to declare at the time of the half-year
results an unchanged interim dividend of 8p per share, payable in
January 2013
-- David Wild steps down as Group CEO. Dennis Millard becomes
interim Executive Chairman. Search underway for replacement CEO
(see separate announcement)
Guidance for the Full Year
Whilst still early in the year, given the uncertain trading
environment our planning assumptions now reflect continuing
negative Retail LfLs in the remainder of the first half, with
second-half Retail LfLs likely to be flat to mid-single-digit
negative. Previous guidance on Retail margins and costs and on
Autocentres' profit growth is broadly unchanged. Under these
scenarios, FY13 Group Profit Before Tax for the year would range
between GBP62m and GBP70m and healthy underlying cash flows would
continue to be generated whilst making progress implementing our
strategic priorities.
Dennis Millard, interim Executive Chairman, commented:
"The consumer environment remains difficult and the unseasonal
weather conditions this quarter had a direct impact on sales of
cycles and outdoor leisure products. In this challenging economic
environment the management team will be focused on maximising our
trading performance and cash generation, prudent cost management
and delivering the longer term strategy outlined to shareholders in
May 2012."
Notes
1. Like-for-like sales represent revenues from UK and Irish
stores trading for greater than 365 days.
2. Where appropriate, revenues denominated in foreign currencies
have been translated at constant rates of exchange.
3. The range of PBT outcomes outlined above is based upon
financial modeling of the current business and a range of revenue
assumptions. The Board is not forecasting revenues for the
remainder of the year and retains the flexibility to react to
changing trading conditions. The above range of PBT outcomes
therefore does not represent a forecast and comes before
non-recurring items.
4. The information in this announcement is sourced from unaudited management accounts.
Enquiries
Halfords +44 (0) 1527 513 113
Dennis Millard, interim Executive Chairman
Andrew Findlay, Finance Director
Craig Marks, Head of Investor Relations
Maitland +44 (0) 207 379 5151
Neil Bennett
Tom Buchanan
Conference Call
There will be a conference call for analysts at 8.00am today.
The participant dial-in is +44 (0) 0203 140 0668 or +44 (0)800 368
1950 (toll free). The PIN is 900655#.
To access a recording of the call, the participant dial-in is
+44 (0) 0203 140 0698 or +44 (0)800 368 1890 (toll free). The PIN
is 385495#.
Forthcoming Newsflow
The Halfords Group plc Annual General Meeting on 29 July 2012
will be followed by a pre-close statement for the 26-week period to
28 September 2012 on 4 October 2012. The interim results will be
published on 8 November 2012.
Notes to Editors
www.halfords.com
www.halfordscompany.com
www.halfordsautocentres.com
Halfords Group plc
The Group is the UK's leading retailer of automotive, leisure
and cycling products and through Halfords Autocentres also one of
the UK's leading independent car servicing and repair operator.
Halfords customers shop at more than 460 stores in the UK and
Republic of Ireland and at halfords.com for pick-up at their local
store or direct home delivery. Halfords Autocentres operates from
more than 260 sites nationally and offers motorists
dealership-quality MOTs, repairs and car servicing at affordable
prices.
Halfords employs approximately 12,000 staff and sells around
10,000 product lines in stores, increasing to around 16,000 lines
online. The product offering encompasses significant ranges in car
parts, cycles, in-car technology, child seats, roof boxes, outdoor
leisure and camping equipment. Halfords own brands include the
in-store Bikehut department, for cycles and cycling accessories,
Apollo and Carrera cycles and exclusive UK distribution rights of
the premium ranged Boardman cycles and accessories. In outdoor
leisure, we sell a premium range of camping equipment, branded
URBAN Escape. Halfords offers customers expert advice and a fitting
service called "Wefit" 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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