Halfords Group PLC (HFD) Halfords Group PLC: 20-Week Trading
Update: Financial Year 2022 08-Sep-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS
Group. The issuer is solely responsible for the content of this
announcement.
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8 September 2021
Halfords Group plc
20-Week Trading Update: Financial Year 2022
A strong start to trading delivered within a challenging
operating environment.
Strong growth in Motoring across retail stores, garages and
vans.
Halfords Group plc ("Halfords" or the "Group"), the UK's leading
provider of Motoring and Cycling products and services, today
announces its trading performance for the 20-week period to 20
August 2021 ("the period").
Given the highly unusual sales patterns in the FY21 comparator
period, our commentary below focusses on revenue growth on a
two-year basis, comparing FY22 revenue to FY20. For completeness,
the table below discloses total and LFL growth on both a one-year
and two-year basis.
Overview
-- Total sales growth of +18.7% (+16.8% LFL) over two years,
driven by:? Increased scale of our Autocentres business, taking
significant share. ? Growth in Retail Motoring, gaining share and
benefitting from staycation trends. ? Strong growth in Retail
Cycling in the first half of the period.
-- Exceptional growth in our areas of strategic importance, with
Service-Related Sales +78%, B2B sales +80%and Online +83%, all on a
two year basis.
-- A strong trading performance, despite the well documented
challenging operating environment.
-- Good cash generation in the period; balance sheet remains
strong.
-- Continue to target full year profit before tax, post-IFRS 16
adjustments, of above GBP75m.
Graham Stapleton, Chief Executive Officer, commented:
"The first 20 weeks of FY22 delivered a strong trading
performance against a hugely challenging backdrop. Our motoring
business now represents 65% of our revenues and continues to go
from strength to strength, driven by the increased scale of our
Autocentres business, the ongoing demand for our Halfords Mobile
Expert Vans, and by recent staycation trends. Although our cycling
business is currently impacted by the considerable disruption in
the global supply chain, as the UK's largest cycling retailer we
are well positioned to adapt and to serve our customers, and we
remain confident in the long-term outlook for the cycling market.
The strength of our overall performance is a clear illustration of
the relevance of our service-led strategy and gives us the
confidence to continue with our investment plans. We remain
positive on our prospects for FY22 and beyond."
Group financial summary 1-Year vs. FY21 2-Year vs. FY20
Total Growth LFL Growth Total Growth LFL Growth
Halfords Group 10.5% 10.8% 18.7% 16.8%
Retail 3.7% 7.6% 7.8% 17.1%
Motoring 48.2% 52.1% 6.5% 11.2%
Cycling -26.0% -22.8% 9.9% 24.2%
Autocentres 43.8% 26.0% 86.2% 15.5%
-- Retail:? Total revenue growth of +7.8% and +17.1% LFL on a
two-year basis. LFL sales were boosted by customertransfer from the
planned store closures in FY21. ? Motoring grew +6.5% and +11.2%
LFL over two years, driven by share gains in key
categories.Maintenance and 3B's (Blade, Bulbs and Batteries) grew
strongly, up +4.3% and +6.9% respectively, whilstTouring products
performed particularly well, up +53.3%, benefitting from staycation
trends. ? Cycling grew strongly, up +9.9% and 24.2% LFL vs FY20,
with Electric mobility up +115%. The globalcycling supply chain
continues to experience considerable capacity constraints, leading
to low availability ofbikes throughout the period. Whilst Kids and
Electric bikes have fared better, availability has been
especiallylow in the Adult Mechanical category, contributing to
materially lower growth rates towards the end of theperiod.
-- Autocentres:? Total revenue growth of +86.2% and +15.5% LFL
on a two-year basis, driven by increased scale,improved
utilisation, and our focus on B2B. ? Our Halfords Mobile Expert
Vans ("HME") grew strongly, up +61.7% on a one-year basis,
demonstratingthe ongoing customer demand for this proposition. ?
The supply of technicians to both garages and HME was impacted by
recruitment challenges andCovid-related absences, which had some
impact on sales in the period.
-- Ongoing challenging operating environment including:? Factory
production constraints and raw material inflation. ? General
freight disruption, capacity constraints and cost inflation. ?
Supply and recruitment challenges in respect of service technicians
and HGV drivers.
Outlook
We expect many of the cycling supply chain issues referred to
above to continue for some time albeit, as the UK's largest cycling
retailer, we are well positioned to navigate these challenges.
Conversely, we are targeting strong growth in our Services and B2B
businesses, alongside an improved Retail Motoring performance. We
plan to continue investing in the initiatives highlighted in our
FY21 Preliminary results on 17 June 2021. These include an
investment in Retail Motoring pricing, Project Fusion trials, which
seek to deliver a seamless, convenient, and consistent experience
to our customers across a town, our Motoring Loyalty scheme, and
scaling our network of garages and vans. We continue to target a
full year profit before tax of above GBP75m on a post IFRS-16
basis.
Notice of results
Our Interim results announcement is on 10 November 2021.
Enquiries
Investors & Analysts (Halfords)
Loraine Woodhouse, Chief Financial Officer
Neil Ferris, Corporate Finance Director
Andy Lynch, Head of Investor Relations +44 (0) 7483 457 415
Media (Powerscourt) +44 (0) 20 7250 1446
Rob Greening halfords@powerscourt-group.com
Lisa Kavanagh
Harold Amoo
Results presentation
A conference call for analysts and investors will be held today,
starting at 09:00am UK time. Attendance is by invitation only. A
copy of the transcript of the call will be available at
www.halfordscompany.com in due course. For further details please
contact Powerscourt on the details above.
Notes to Editors
www.halfords.com www.tredz.co.uk www.halfordscompany.com
Halfords is the UK's leading provider of motoring and cycling
services and products. Customers shop at 404 Halfords stores, 3
Performance Cycling stores (trading as Tredz and Giant), 374
garages (trading as Halfords Autocentres, McConechy's and
Universal) and have access to 166 mobile service vans (trading as
Halfords Mobile Expert and Tyres on the Drive) and 192 Commercial
vans. Customers can also shop at halfords.com and tredz.co.uk for
pick up at their local store or direct home delivery, as well as
booking garage services online at halfords.com.
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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ISIN: GB00B012TP20
Category Code: TST
TIDM: HFD
LEI Code: 54930086FKBWWJIOBI79
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 121674
EQS News ID: 1231857
End of Announcement EQS News Service
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