Halfords Group PLC (HFD)
Annual Financial Report
04-Aug-2020 / 07:10 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Halfords Group plc
Annual Report and Accounts for period ended 3 April 2020
including the Notice of Annual General Meeting ("AGM") - convened for 15
September 2020
The Company announces that the Annual Report and Accounts for the period
ended 3 April 2020 and Notice of Annual General meeting of the Company, have
been posted or otherwise made available to shareholders and published on its
website www.halfordscompany.com [1].
The Company's 2020 Annual General Meeting will be held at Halfords Group
plc, Support Centre, Icknield Street Drive, Washford West, Redditch, B98 0DE
on Tuesday 15 September 2020, commencing at 11:30 am.
In accordance with Listing Rule 9.6.1, a copy of the Annual Report and
Accounts and the Notice of Annual General Meeting of the Company have been
submitted to the UK Listing Authority, and will shortly be available for
inspection via the National Storage Mechanism at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism [2]
Tim O'Gorman
Company Secretary
Halfords Group plc
The Appendix to this announcement is a supplement to our preliminary
statement of Financial Results made on 7 July 2020 (the "Final Results
Announcement"). It contains the information required pursuant to Disclosure
Guidance and Transparency Rule 6.3.5 that is in addition to the information
communicated in the Final Results Announcement, and should be read together
with the Final Results Announcement.
Appendix
The Chief Financial Officer's Report in the preliminary statement of the
Final Results Announcement issued on 7 July 2020 includes a commentary on
the principal commercial and financial risks and uncertainties to achieving
the Group's objectives.
Further details of other principal risks and uncertainties relating to the
Halfords Group are set out on pages 68 to 78 of the 2020 Annual Report and
Accounts. Specific financial risks (e.g. liquidity, foreign currency) are
detailed in note 22 to the Financial Statements on pages 182 to 186 of the
2020 Annual Report and Accounts.
The following is extracted in full and unedited form from the 2020 Annual
Report and Accounts.
Risk Title Risk Current Focus in 2020
Description Mitigation Priorities in
2021
Strategy
Capability and If we do not Strategic
capacity to have priorities have
effect sufficient been clearly
significant capacity and defined ? Accelerated
levels of capability (in following an growth in our
business change terms of our in-depth motoring
people, strategic services
processes and review, business.
systems) to supported by
(no change) successfully comprehensive
implement the customer,
changes colleague,
necessary market and
across the competitor ? Specialist
business, we research and resource
will not with powerful brought in to
realise the insights from boost existing
expected our Single capability.
benefits of Customer View.
our strategy
and the
business will
not be A Transformation
sustainable. Board provides ? Robust
governance over business case
the change template and
programme Capital
necessary for allocation
the delivery of model
the Strategy. developed.
The Board
ensures there is
a robust
approval process
for each
project, ? New
allocates capability from
resource and IT restructure.
monitors
progress.
Project Managers ? Annual
are in place strategic plan
within the 'refresh' to
business to whom involve review
projects can be of progress to
assigned and date and pivot
this has been for COVID-19
supplemented by opportunities
specialist and threats.
resource to
boost
capability. In
effecting
change, Halfords ? Focus on Free
is requiring all Cash Flow to
contributing maintain
colleagues to sufficient
observe the capital for
principles of investment.
Responsible,
Accountable,
Consulted and
Informed
("RACI").
COVID-19
In response to
COVID-19 we have
adapted the
short-term
strategic plan
to focus on
those activities
that either
respond to
emerging
customer trends,
such as the
significant
shift to digital
channels, or
improve the
long-term health
of the business,
such as
colleague
engagement and
fixed cost
reduction. This
level of focus
will ensure we
utilise our
resources on the
most important
programmes only
in the year
ahead, with the
objective of
further
strengthening
the business
foundations
before embarking
on some of the
more
transformative,
and capital
intensive,
aspects of the
plan.
Stakeholder If we fail to Progress against
support and secure and our strategic
confidence in maintain our objectives is
strategy stakeholders' shared with ? Series of
(investors, colleagues on a conferences
suppliers, weekly and relaying
colleagues) monthly basis strategy to our
(decrease) support for through team colleagues and
our strategy, huddles and they suppliers.
they may lose also receive a
confidence in weekly blog from
the business the CEO and a
and withdraw monthly
their newsletter.
resources. Quarterly ? Presentation
updates with Q&A of accelerated
are given by our services
CEO, live strategy to
streamed to all investment
distribution community
centres, stores
and autocentres.
Throughout the ? Colleagues
year we engaged and
with our shareholders.
suppliers,
keeping them
informed of our
strategic plans
as key partners
and listening to ? Revised
their insights internal
and observations communications
to enhance our strategy.
working
relationship.
We maintain ? Replaced
regular contact financial PR
with key advisors.
investors via a
series of
written
communications,
roadshows and
regular ? Launch new
one-to-one 'Investment
meetings. Case' to the
analyst and
investor
community.
COVID-19
The Board holds
regular meetings ? Communicate
with to all
shareholders and stakeholders
their our 'fast
representatives. start' FY21
Recent investment
discussions have plans and
focused on the guidance on the
impact of impact of
COVID-19 on our COVID-19.
strategic
ambitions and
the
opportunities
and risks this
creates for the
Group in the
short and
long-term.
Brand appeal and If we continue Our brand
market share to lose brand purpose is to
relevance, we "Inspire and
will be unable Support a ? A new digital
to maintain Lifetime of web platform
(no change) and grow our motoring and offering
customer base cycling". Our seamless access
and build focus on to the brands'
market share. ensuring services and
relevance is products.
centred around
having a
proposition that
meets the needs
and wants of our
customers and ? Enhancing our
ensuring that services
they are aware proposition and
of our offer. awareness with
a greater
emphasis on
serving the
During the year growth in
we enabled electrification
greater .
awareness of our
Group
proposition
through the
launch of our
newly integrated ? Reaching new
digital platform audiences
providing through our
customers with partnerships,
seamless access marketing
to all our activity and
brands. Giving channel
customers optimisation.
improved
accessibility to
services that
they may not
previously have
known we ? Development
provided was of our customer
further strategy to
supported by the adapt and
flexibility optimise the
afforded by our experience
financial across all
services touch points.
offering through
all channels.
As the ? Grow momentum
pre-eminent in our Group
voice of the services offer
cycling and and enhance our
motor services convenience
sector, we have with
lobbied improvements to
Government on our delivery
expediting proposition.
E-scooter
trials,
expansion of the ? As we emerge
Cycle-to-Work from lockdown,
scheme and more continue our PR
recently the momentum and
COVID-19 related social
MOT extension. engagement,
We also take a building an
lead on product industry voice
innovation, as a customer
investing in new champion and
E-mobility and keeping the
providing nation moving.
servicing for
hybrid vehicles,
serving the
growth in
electrification.
We have
significantly
improved our
social
engagement this
year, seen a
greater mix of
new customers as
well as more
female customers
and a younger
audience with
our proposition
enhancements and
marketing
investments.
Our HME
expansion has
added strength
to our
convenience
credentials as
has our emerging
built bikes to
door initiative.
COVID-19
Status as an
essential
retailer is a
responsibility
we have taken
seriously and
one which our
colleagues have
embraced with
pride.
'Essential'
status has
allowed us to
promote
awareness of our
services
offering whilst
serving the
nation and key
workers during
the crisis.
A GBP2 billion
pound package
provided by the
Government as
part of its
cycling and
walking
investment
strategy was
announced in
May. We
anticipate high
demand for the
'fix your bike'
voucher scheme,
having
experienced
significant
growth in our
cycle repair
business over
the period.
Value Customers are To differentiate
Proposition not persuaded ourselves in a
by our value competitive
proposition retail market ? Additional
and we lose our vision is to services
(new) market share consolidate capacity via
to online Halfords as a the acquisition
retailers and super-specialist of McConechy's
discounters. in motoring and and Tyres on
Purely cycling. Our the Drive.
competing on strategy
price leads to emphasises the
a diminution importance of
of financial creating value
returns. for the customer
by delivering ? Launched new
services service
alongside the offerings e.g.
sale of a WeCheck.
product.
During the year
we grew our UK ? Developed our
services Financial
footprint with Services
the acquisition offering across
of McConechy's, the Group.
based in
Scotland and the
North of
England. The UK
market for
motoring ? Grow Halfords
services is Mobile Expert,
fragmented with increasing to
no clear market over 200 vans.
leader. With the
average age of
UK cars ? Develop our
increasing, we digital offer
are well via the
positioned to optimisation of
become the UK's the new Group
leading web platform
independent with a focus on
provider of MOT improving
and servicing to convenience to
motorists across customers.
the country.
During the year ? Enhancing
we also acquired solution
the assets of selling for key
Tyres on the product
Drive to categories
significantly alongside
bolster our momentum in
mobile services growing
offering, which service-related
provides sales.
convenience and
peace of mind to
our customers,
demonstrated by
strong customer
demand and high
Trustpilot
scores.
With our Klarna
partnership
offering
financial
solutions across
channels and for
the Group, our
products and
services are
more accessible
for many
customers.
COVID-19
Demand for our
cycling range
has been
unprecedented
throughout
lockdown, during
which time, as
the UK's leading
cycle retailer,
we were able to
demonstrate our
role in enabling
more people to
ride more often.
During the
lockdown period
there has been
high demand for
home delivery
fulfilment,
particularly
bikes. We grew
our bike to door
initiative. We
also launched
'Payment
online',
providing full
online
functionality
and ease of
purchase for
customers.
Financial
Brexit Changes to In January the ? Delivery
consumer UK withdrawal against our
confidence, agreement from corporate
the cost of the EU received strategy to
(no change) doing business Royal Assent, strengthen our
or triggering a appeal to
the way in transition consumers and
which we run period that is reduce our
our operation due to expire on exposure to
as a result of 31 December currency risk.
Brexit results 2020. Throughout
in materially the year
lower profits preparations
or were maintained
organisational for a no-deal ? Explore
strain. scenario. revised tariff
and duty
regulations to
identify new
We have a Brexit sourcing
steering opportunities.
committee that
evaluates the
risk factors to
the business in
support of the
Group's ? Stock build,
post-Brexit where
readiness. appropriate, to
Actions taken to mitigate
date include: short-term
supply issues.
· Authorised
Economic
Operator
("AEO") status ? Ongoing
secured in monitoring of
full, allowing negotiations in
lower friction readiness for
customs change.
procedures;
·
Comprehensive
Customs
Guarantee
("CCG")
granted in
conjunction
with AEO
allowing
deferral of
all VAT and
Duty payments
with
a lower
guarantee
level;
· an ongoing
18-month
hedging
policy;
· buffer
stocks
maintained
within
Halfords and
with vendors
to mitigate
border delays;
· lead times
extended for
European
vendors;
· support
provided to
our EU workers
based
in the UK.
In the period to
December, we
will continue to
work on our
readiness and
have identified
areas of focus.
Vendor
negotiations are
ongoing and
terms changes
are likely to be
required as we
move out of the
transition
period. We have
modelled the
costs our
suppliers are
likely to incur,
enabling us to
engage in
constructive
negotiations.
Duty and other
at the border
costs related to
administrative
burden and time
delays will
affect all
importers and
exporters,
resource and
shift changes
have been
adopted to
minimise any
additional cost.
Our Republic of
Ireland stores
will become an
export and we
anticipate
border controls
across the Irish
Sea. To allow
continued
replenishment
and returns for
all Irish stores
we have adapted
our logistics
processes.
Sustainable Changes in the A number of ? Ongoing focus
business model UK economy strategic on building our
(including initiatives are services
consumer well advanced to business,
confidence and reduce our leading to a
(increase) the value of exposure to more resilient
the Pound) changes in the business and
could UK economy that one less
materially adversely impact exposed to
impact our 'business as foreign
revenue and / usual' and the exchange
or costs, and delivery of our variation.
therefore the Strategy:
profitability ? Customer
of the propositions
business. designed to
secure revenue
from existing
? procurement customer base
Unless we can savings (e.g. Financial
reduce our programmes in Services,
exposure to place for direct Motoring and
these economic and indirect Cycling
variables costs; Services, B2B).
(e.g. our
foreign
exchange
exposure) and
improve our ? Strategic
ability to ? supply chain sourcing
move quickly efficiencies tie-ups (e.g.
on fixed under review Mobivia).
assets and with
property opportunities
costs, we will for strategic ? Strategic
not create a sourcing cost reduction
sustainable alliances; programmes
business targeting a
model. reduction in
property cost,
supply chain
and goods not
? developing for resale
opportunities to spend.
lower warehouse
and distribution
costs;
? Planned
improvements in
cycling
profitability.
? working
capital
reduction
programme
targeted at
reducing stock ? Working
holding and capital
aligning trade reduction via
creditor terms; strategic stock
reduction
programmes.
? a formal
hedging
programme has
been extended to
reduce foreign
exchange risk;
? initiatives to
drive revenue by
extending our
service offering
to our existing
customer base
through
financial
services
products
and B2B; and
? continued
evaluation of
the impact of
the UK's
departure from
the European
Union
and the impact
on trade
tariffs.
COVID-19
The occurrence
of the pandemic,
has elevated
this risk and
financial
resilience has
therefore,
become central
to our
decision-making
and will remain
a key
consideration
into the
foreseeable
future. Early in
the crisis we
were able to
access
substantial
liquidity by
drawing down
fully on our
overdraft and
Revolving Credit
Facility.
Recognition as
an essential
retailer has
enabled us to
trade well
through the
lockdown period,
albeit at
reduced levels.
Postponing
capital
commitments,
reducing our
variable cost
base and
optimising our
working capital
position are
some of the
measures we have
taken as we
navigate through
this period.
Operational
COVID-19 The viability In response to ? Continue to
of the COVID-19, the build
business is at Board took swift operational
risk if we do and decisive resilience by
(new) not adapt our action to iterating the
operations to mitigate the retail and
safeguard our potential garage
customers, impact, operating
colleagues and including a environments to
wider series of ensure the
community, as operational and ongoing safety
well as taking financial of our
the necessary measures to colleagues and
steps to safeguard the customers.
minimise cost business.
and preserve ? Target a
liquidity. gradual
improvement in
As a provider of sales volumes
essential and
products and profitability
services to the by successfully
UK public, we meeting the
have remained increased
open during the demand
lockdown period. generated by
We were able to the changing
keep open most customer
of our Retail behaviour
estate on a coming out of
'dark-store' lockdown -
basis, enabling notably the
us to serve trend to more
customers safely cycling
from the front journeys and a
of the store, likelihood of
whilst also more motorists
ensuring our on the road.
colleagues could
operate in safe
working
conditions. As
lockdown ? Target a
restrictions series of 'fast
began to lift, start'
we enabled a programmes to
'Retail Lite' aggressively
programme to take cost out
gradually start of the
reopening stores business.
to customers in
accordance with
social
distancing
requirements. We
were able to ? Continue to
open over 300 stress test and
garages across reverse stress
our Autocentres test our
and McConechy's business model
brands, and to ensure
operate all 77 access to
mobile vans, a sufficient
services liquidity.
proposition that
was particularly
popular during
lockdown.
? Perform a
'lessons
Proactive learned' review
measures have of our COVID-19
been applied to response and
obtain greater renew our
oversight and business
control of continuity
liquidity and planning.
cash management.
We have
negotiated terms
with our
commercial
partners,
reduced
discretionary
spend and paused
capital
investment. We
have accessed
Government
support where
available, such
as the Job
Retention Scheme
and business
rate relief. We
have been in
active dialogue
with our
existing lending
syndicate to
provide
additional
flexibility as
required.
An economic
contraction is
likely,
impacting
consumer
confidence and
discretionary
income. Our
financial
services
proposition has
performed well
and will be a
valuable option
for customers
seeking to
spread their
costs.
IT Failure in our Extensive
infrastructure IT system(s) controls are in
failure may cause place to
significant maintain the ? Introduction
disruption integrity of our of new Group
to, or systems and to website hosted
(no change) prevention of, ensure that through
normal systems changes Salesforce.
business-as-us are implemented
ual in a controlled
activities. manner.
Halfords' key
trading systems
are hosted ? Continue
securely within progression
data centres towards a fully
operated by a cloud-based
specialist hosting
company and in structure.
specialist cloud
services
operated by
Microsoft. These
systems are
supported by
disaster
recovery
arrangements,
including
comprehensive
backup and
patching
strategies. IT
recovery
processes are
tested
regularly.
COVID-19
Our cloud-based
systems enabled
minimal
disruption as
many of our
colleagues
transitioned to
home working.
Support from our
service
providers has
ensured system
stability for
our remote
workers.
Skills shortage We may be We have a
unable to strategy that
recruit, relies on
retain and attracting and ? Pathway
(no change) develop enough retaining development
people to have colleagues who enabling young
the different can inspire and talent to join
mix of skills support our our business.
that we need customers and
at all levels encourage them
across the to build a
business, in lifetime
the near and relationship
longer term. with the brand. ? Update
recruitment
collateral
in-line with
Our in-house our new values
resourcing team and behaviours
have developed a programme.
recruitment
website which
highlights the
importance of
the Halfords
behaviours and ? Move more of
details the our eLearning
skills and training into
experience video learning.
required of our
colleagues.
There are clear
and detailed
recruitment
processes in ?
place which are -
reviewed
regularly to
respond to
changes in the
business.
In our stores,
our Gears
training
programme
provides our
colleagues with
structured
training taking
them through
their first
18-24 months. We
use our training
programme to
enhance skills,
reinforce our
behaviours, keep
colleagues
engaged and
reach a
competitive
hourly rate of
pay.
We also review
our skills mix
frequently to
ensure that all
stores have the
right skill
levels to
provide the
services needed
to satisfy our
customer needs.
The analysis
from these
exercises leads
us to target
specific skills
needed as a
priority to
ensure we keep
any skills gap
minimal. Using
an experienced
internal
training team,
we then develop
and deliver a
targeted plan to
increase skill
levels in any
identified
areas.
In our
Autocentres,
training is a
fundamental part
of our business
and a great
attraction tool
for applicants.
We support the
training of
colleagues
ranging from our
apprentices
right through to
a Level 3
Technician. We
provide in-house
Hybrid and MOT
tester courses
ensuring that we
can service the
full car parc.
We apply a
targeted
approach to
further enhance
skill levels for
centres as we do
with stores, by
mapping
against the
optimal skills
mix.
COVID-19
To support FY21
requirements we
translated some
of our skills
development
material into
Virtual
Classroom
content,
allowing us to
train colleagues
whilst they
remained in
store.
Colleague Our employment Colleague
engagement / model may not engagement is
culture be vital to our
sufficiently success as a ? Responsive
attractive to business. action taken to
recruit and Engagement is a address
(no change) retain the metric in the observations of
talent that we Executive bonus colleagues from
need. scheme and is our engagement
monitored by the survey.
Board, under the
direction of
Helen Jones, the ? Continued
Non-Executive development of
Director the business
responsible for tools available
Colleague Voice. to our
colleagues, to
improve their
experience in
An annual the workplace.
engagement
survey,
administered and
analysed by a
third party, ? Significant
provides us with increase in the
reports at team number of
level. We create listening
an environment groups held
which encourages across the
colleagues to business.
feed back to us
about how we can
make Halfords an
even better
place to work
and this is ? Launch of our
clearly new colleague
successful as values and
last year we had behaviours
a survey framework.
response rate of
93%. Our
engagement index
of 79%
demonstrates
that the ?
majority of our Identification
colleagues enjoy and development
working at of top talent
Halfords. to strengthen
succession.
The feedback
received from
colleagues
through both our
annual internal
engagement
survey, and the
Sunday Times Top
25 Large
Employer surveys
formed the basis
of functional
engagement plans
across the
business.
Regular
listening groups
are held - with
a total of 111
across the Group
as a whole.
A full review of
the culture of
our business was
undertaken
during the year,
resulting in the
definition of a
revised
colleague values
and behaviours
framework. This
framework was
built with input
from c1,300 of
our colleagues
from across the
business and is
due to be
launched in
2021. Further
details can be
found in the
Corporate
Governance
Report on pages
94 and 95.
The
identification
and development
of top talent,
so strengthening
succession was
also a key
focus. This will
remain a focus
throughout 2021
and beyond.
COVID-19
A wellbeing
newsletter was
issued across
the business on
a weekly basis,
ensuring
colleague
engagement has
formed a key
part of our
response to the
pandemic.
Critical Severe damage Extensive
physical or failure of research is
infrastructure physical conducted into
failure infrastructure quality and ? Refreshed our
(including may disrupt ethics before Business
supply chain our supply the Group Continuity
disruption) chain and / or procures planning.
business as products from
usual any new country
activities and or supplier. The
(no change) prevent the Group's strong
fulfilment of management team
customer in the Far East ? Continued
orders. blends development of
expatriate and relationships
local with current
colleagues. It and potential
understands the new suppliers.
local culture,
market
regulations and ? Post COVID-19
risks and we lockdown,
maintain very immediate
close switch to home
relationships working for
with both our Support Centre
suppliers and colleagues,
shippers to supported by
ensure that enabling
disruption to technology.
production and
supply are ? Adaptations
managed to critical
appropriately. work
environments -
e.g.
Distribution
We work with Centres - to
suppliers in enable safe
several working
territories to conditions for
reduce the risks colleagues.
of disruption,
and we monitor ? Alternative
sourcing suppliers
opportunities identified to
nearer to the address
UK. potential
disruption in
the supply
chain arising
We maintain firm from the
security and ongoing
protection implications of
measures at our the pandemic.
distribution
centres. We have
business
continuity plans
to manage any ? Review our
incidents that Business
may occur. Our continuity
logistics are planning with
overseen by an lessons learned
experienced, following the
dedicated impact of
warehouse and COVID-19.
logistics team
who maintains
contacts with a
range of
logistics
businesses who
could be
utilised if
necessary. As
the conclusion
of the Brexit
transition
period draws
closer, we are
continuing
preparations for
changes in the
nature of the
border between
the UK and the
Republic of
Ireland.
COVID-19
We have worked
exhaustively
with our supply
chain to respond
to the unique
challenges
presented by the
COVID-19
pandemic. Since
the virus was
first reported
in China, and
during the
current lockdown
restrictions in
the UK, we have
maintained
supply to our
customers
despite the
constraints and
significant
demand for some
of our product
lines.
Compliance
Regulatory and A failure to We have a
Compliance adhere to our compliance team
legal and/or with a wide
regulatory remit to set ? Strengthened
obligations policy and the central
(no change) for some or verify that compliance
all of the business function to
Group's activities are ensure focus on
activities compliant with all relevant
leads to an legal and activities.
inability to regulatory
meet our obligations. In
responsibiliti the past year, ? Increase
es to the Group has colleague
stakeholders also established awareness and
and/or the a dedicated understanding
imposition of Compliance of personal
financial Committee with responsibilitie
penalties, senior input and s via improved
placing a attendance from visibility of
strain on the all areas of the Company
business. business to policies and
drive localised development of
ownership and new training
actions. resources.
The senior
leadership team ? Increase the
communicates number and
tone from the frequency of
top to provide onsite
guidance to compliance
colleagues on audits to
all policy assess
commitments. adherence to
Company
standards.
Regular horizon
scanning to
capture new
regulations and
guidance. ? Reinforce the
need for a
culture of
compliance by
COVID-19 default and
design.
We have adhered
to the 2020
Health
Protection
Regulations
throughout the
lockdown period,
only opening our
stores and
autocentres when
guidance was
clear and we
were satisfied
it was safe.
Service quality The service we All our
provide to colleagues are
customers may provided with
fail to meet dedicated ? Ongoing
(no change) regulatory / training and investment in
safety adhere to training across
requirements established Retail and
resulting in quality control Autocentres.
harm to and safety
customers and procedures with
/ or legal / compliance ? Significant
financial audits by investment in
penalty. management. We garage
also have a technology, via
dedicated workflow and
compliance team self-audit
monitoring our capability, to
Autocentre support quality
operations. job completion.
We provide
centralised ? Monitoring of
training for our customer
retail satisfaction
colleagues through
through our detailed review
Gears 1 and 2 analysis.
programme to
ensure they are
consistently
knowledgeable
about our
products and ? Continued
able to deliver development of
a quality our colleagues
service to our and our estate
customers. to provide high
Colleagues also levels of
complete an customer
annual service.
assessment of
their
understanding of
our quality
procedures. We
have four
equipped
training
academies
delivering
training for
Autocentre
technicians and
the technician
grading
assessment is
linked to
quality of
workmanship as
well as skills
and
qualifications.
Our products are
risk assessed
and rigorously
tested for
quality and
safety by
qualified
engineers in our
dedicated
quality team. We
monitor customer
comments and
complaints and,
when necessary,
we have
established
recall
processes.
We continue to
invest in our
estate, and this
is enabling us
to enhance our
service offering
to customers by
evolving the
layout of our
stores in
addition to
further
developments in
IT
infrastructure,
training and
online
functionality.
COVID-19
Our evolving
'Lite' model
will apply to
stores and
autocentres for
the foreseeable
future,
facilitating
social
distancing as we
emerge
from the
COVID-19
lockdown.
We also enabled
remote working
for many of our
colleagues not
working in
store, joining
forces with our
customer service
team to respond
to record levels
of customer
contact.
Cyber security If we fail to Following on
sufficiently from a review of
detect, our IT Operating
monitor, or Model, we have a ? Process
(no change) respond to Head of reviews and
cyber-attacks Information recommended
against our Security, improvements to
systems they sitting on the increase
may result in IT Leadership overall
disruption of Group, to manage security
service; the IT security posture.
compromise of framework and
sensitive ongoing
data; development and
financial review of our IT
loss; Security
reputational strategy and ? Enhanced
damage. road map. Our IT involvement of
Security security at the
partner, TCS, start of
have been project
successfully development
onboarded and (security by
provide valuable design).
support by
managing
vulnerability
scans and our
email and
website ? Awareness
security. training
delivered to
all colleagues
on information
A perpetual security and
training cyber security
programme exists threats.
for the benefit
of our
colleagues,
raising
awareness
and promoting ? Advanced
good security programme of
hygiene. penetration
testing and
vulnerability
assessments.
The Audit
Committee is
briefed by
senior IT
management on
the business' IT ? Continued
security support and
framework and training for
continues to our colleagues
closely monitor to maintain
this area. good cyber
hygiene
COVID-19 ? Work towards
fully managed
Security
Operations
We maintained Centre (SOC) on
testing of our target for 2021
defences in to increase
anticipation of visibility of
a heightened threat
threat. A major landscape.
COVID-19
ransomware
attack was
successfully
blocked,
applying
intelligence
obtained from
various security
threat
advisories.
Directors' Responsibilities
The Annual Report and Accounts for the period ended 3 April 2020 contains
the following statements regarding responsibility for the financial
statements in compliance with DTR 4.1.12. Responsibility is for the full
Annual Report and Accounts for the period ended 3 April 2020.
Statement of Directors' Responsibilities in Respect of the Annual Report and
the Financial Statements
The Directors are responsible for preparing the annual report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law they are required to prepare the Group
financial statements in accordance with International Financial Reporting
Standards ("IFRSs") as adopted by the European Union ("EU") and have elected
to prepare the parent company financial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law). Under company law the Directors must not
approve the financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the group and company and of
the profit or loss for the group for that period.
In preparing these financial statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· make judgements and accounting estimates that are reasonable and
prudent;
· for the group financial statements, state whether they have been
prepared in accordance with IFRSs as adopted by the European Union,
subject to any material departures disclosed and explained in the
financial statements;
· for the parent Company financial statements, state whether applicable UK
Accounting Standards have been followed, subject to any material
departures disclosed and explained in the parent company financial
statements;
· prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the group and the parent company will
continue in business; and
· prepare a directors' report, a strategic report and a directors'
remuneration report which comply with the requirements of the Companies
Act 2006.
The Directors are responsible for keeping adequate accounting records that
are sufficient to show and explain the company's transactions and disclose
with reasonable accuracy at any time the financial position of the company
and enable them to ensure that the financial statements comply with the
Companies Act 2006 and, as regards to the group financial statements,
Article 4 of the IAS Regulation. They are also responsible for safeguarding
the assets of the company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Website publication
The Directors are responsible for ensuring the annual report and the
financial statements are made available on a website. Financial statements
are published on the company's website in accordance with legislation in the
United Kingdom governing the preparation and dissemination of financial
statements, which may vary from legislation in other jurisdictions. The
maintenance and integrity of the company's website is the responsibility of
the Directors. The Directors' responsibility also extends to the ongoing
integrity of the financial statements contained therein.
Directors Responsibilities Pursuant to DTR4
The Directors confirm to the best of their knowledge:
· the group financial statements have been prepared in accordance with the
International Financial Reporting Standards ("IFRSs") as adopted by the
European Union and Article 4 of the IAS Regulation and give a true and
fair view of the assets, liabilities, financial position and profit and
loss of the group.
· the annual report includes a fair review of the development and
performance of the business and the financial position of the group and
the parent company, together with a description of the principal risks and
uncertainties that they face.
Approved by order of the Board.
Keith Williams
Chairman
6 July 2020
ISIN: GB00B012TP20
Category Code: ACS
TIDM: HFD
LEI Code: 54930086FKBWWJIOBI79
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 79529
EQS News ID: 1108531
End of Announcement EQS News Service
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August 04, 2020 02:10 ET (06:10 GMT)
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