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Halfords Group plc Preliminary Results announcement
Halfords Group plc, the UK’s leading auto, leisure and cycling products retailer, announces its Preliminary Results for the 52 weeks ended 31 March 2006.
Financial Highlights
- Revenue £681.7m up 8.5%, (2005: £628.4m)
- Like-for-like sales up 6.1%
- Operating profit £89.1m (2005: £89.3m)
- Pre-tax profit £77.0m up 3.6% (2005: £74.3m)
- Basic earnings per share 23.6p (2005: 23.7p)
- Net debt, excluding finance leases, down £8.4m to £160.7m
- The Board is recommending a final dividend of 8.75p, making a total of 12.75p per ordinary share, up 6.3%
Business Highlights
- Strong growth in cycles and in-car technology products
- 408 stores with 18 new store openings, including 3 relocations
- Mezzanines now in half of the superstores including 100 stores in the supermezzanine format
- The Republic of Ireland store opening plan accelerated and a 3-store trial planned for Central Europe in Spring 2007
- Share buy-back returning up to £50m to shareholders over the next two years, while maintaining a strong financial position to allow continued investment.
Commenting on the results, Ian McLeod, Chief Executive, said:
“Halfords has continued to grow sales and cash margin in a challenging trading environment. During the year we have strengthened Halfords market-leading positions in needs-driven car maintenance products and cycling while becoming the destination store for in-car technology. The significant year-on-year growth of in-car technology has generated a change in the sales mix, which has resulted in a 260 basis points dilution in the gross profit percentage. During the nine-week period since the year-end the level of gross profit percentage dilution has reduced significantly, a trend we expect to see continue. During the same period sales have grown by 10.5%, like-for-like sales are up 7.3% and underlying like-for-like sales are encouraging at 3.2%, excluding Easter. The combination of these factors therefore provide us with confidence in our future trading prospects.”
Enquiries:
| Halfords Group plc | |
| Ian McLeod, Chief Executive | 01527 513276 |
| Nick Carter, Finance Director | 01527 513276 |
| Tony Newbould, Investor Relations | 01527 513113 |
| Gainsborough Communications | |
| Andy Cornelius | 0207 190 1703 |
| Julian Walker | 0207 190 1705 |
Halfords Group plc
Halfords is the UK’s leading auto, leisure and cycling products retailer, with 408 stores and 10,000 employees.
The Group sells 11,000 different product lines ranging from car parts and cycles through to the latest in-car technology, alloy wheels, child seats, roof boxes and the latest 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. Stores offer a “We’ll fit it” service for car parts, child seats, satellite navigation and in-car entertainment systems and a “We’ll repair it” service for cycles.
In addition to the corporate website, www.halfordscompany.com, Halfords operates an online retail website, which can be found at www.halfords.com.
Halfords was established in 1892, floated on the London Stock Exchange in June 2004 and is a FTSE 250 company.
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 which 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.
View the full press release in PDF format.