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Preliminary Results Announcement
STRONG PERFORMANCE IN ALL KEY CATEGORIES AND WELL POSITIONED FOR CURRENT YEAR
Halfords Group plc, the UK's leading automotive and leisure products retailer, announces its Preliminary Results for the 52 weeks to 28 March 2008.
Financial Highlights
- Revenue £797.4m up 7.2% (2007: £744.0m)
- Like-for-like sales up 4.3% (2007: 6.0%)
- Operating profit £101.0m up 8.0% (2007: £93.5m), operating margin 12.7% (2007: 12.6%)
- Profit before tax and exceptional finance costs1 £90.2m up 8.0% (2007: £83.5m)
- Profit before tax £90.2m up 11.5% (2007: £80.9m)
- Basic earnings per share before exceptional finance costs1 29.3p up 10.2% (2007: 26.6p)
- Basic earnings per share 29.3p up 13.6% (2007: 25.8p)
- Net debt, including finance leases, £181.7m (2007: £180.0m)
- The Board is recommending a final dividend of 10.35p, making a total of 15.10p per ordinary share (2007: 13.85p), up 9.0%
- Share buy-back: 9.5m shares purchased for an aggregate consideration of £30.3m (average price 319.6p per share). Since the inception of the buyback programme in June 2006, 21.5m shares have been purchased for a consideration of £68.7m
Note: 1. See note 4 to the Preliminary Results
Business Highlights
- Strong growth in all categories: Car Maintenance, Car Enhancement and Leisure
- wefit and werepair jobs increased by 13% to 1.3m
- 450 Halfords stores trading following 29 new store openings
including five relocations
- Three new stores opened in the Czech Republic
- First Polish store scheduled to open Autumn 2008
- Five standalone Bikehuts trading. Further stores and dedicated web-site planned for 2008.
- Successful launch of Boardman cycle range and Bikehut's sponsorship of the Great Britain cycling team, including during the Beijing Olympics, enhances premium cycling credentials
- Five-year programme to replace all business systems successfully completed
- Launch of "Reserve and Collect" accelerates growth of the multi-channel offer
Nick Wharton and Paul McClenaghan, acting joint Managing
Directors, commented on the results:
"A successful year has seen strong sales growth in Halfords'
traditional product areas of Car Maintenance and Cycling, with
these results further demonstrating the resilience of the Halfords'
business model. Automotive sales since the year-end have been in
line with expectation, with sales of leisure products having gained
momentum following the slow start to the season that was impacted
by a cold and wet April. In comparison, the Easter period in 2007
benefited from warm, dry weather that helped to drive a strong
sales performance. Ongoing product and service initiatives, and
growth in store numbers provide the Board with confidence in
Halfords' prospects for the current financial year."
Enquiries:
| Analysts: | |
| Halfords Group plc | |
| Nick Wharton, Finance Director | +44 (0) 1527 513129 |
| Tony Newbould, Investor Relations Officer | +44 (0) 7753 809522 (on the day) |
| +44 (0) 1527 513113 (thereafter) | |
| Media: | |
| Hogarth Partnership | |
| Julian Walker, James Longfield | +44 (0) 207 357 9477 |
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, 23 July 2008. The meeting will include a first quarter trading update from the Company that will cover the 13 weeks from 29 March 2008 to 27 June 2008. In the comparable period last year the Company had total sales growth of 11.4% and like-for-like sales growth of 8.4%.Notes to Editors:
www.halfords.co.uk
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Halfords Group plc
The Group employs in excess of 10,500 staff and sells over 10,000 different product lines, ranging from car parts and cycles through to the latest in-car technology, alloy wheels, child seats, roof boxes and outdoor leisure and camping equipment. Halfords' own brands include Ripspeed, for car enhancement, 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 450 stores, including three stores in the Czech Republic, 24 smaller format, neighbourhood stores and five standalone Bikehuts, 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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