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Interim Results to 26 September 2008
SOLID PERFORMANCE DRIVES EARNINGS AND DIVIDEND GROWTH
Halfords, the UK's leading automotive and leisure products retailer, announces its Interim results for the 26 weeks to 26 September 2008.
Financial Highlights
- Revenue £407.1m up 1.6% (2007: £400.7m)
- Like-for-like sales decrease by 1.1%
- Gross profit percentage improves by 70 basis points to 51.6% (2007: 50.9%)
- Operating profit £55.0m up 4.6% (2007: £52.6m)
- Profit before tax £49.1m up 3.2% (2007: £47.6m)
- Basic earnings per share 16.7p up 9.2% (2007: 15.3p)
- Interim dividend 5.00p up 5.3% (2007: 4.75p)
- Operating cash flow £72.6m (2007: £59.4m)
Business Highlights
- Solid growth in traditional core areas of car maintenance and cycling
- Active management of operating infrastructure to further improve cost control
- Additional cost reduction programmes to be implemented during second half year
- 8 new store openings during the period
- Czech Republic operation continues to trade in line with expectations
- Pilot results provide confidence to accelerate Central European store-openings
- National pilot of standalone cycle store through stores in York and Norwich
Commenting on the results, David Wild, Chief Executive, said:
"In the current economic environment the core areas of Halfords' business have performed well, particularly car maintenance which is characterised as needs driven, with low transaction values and higher than average margins. We continue to control costs whilst maintaining a solid platform for future earnings growth and ensuring that we maintain a support structure appropriate to this part of the business cycle.
Halfords' ongoing product and service developments together with continuing cost management provide the Board with confidence in the delivery of full year profit before tax, from trading activities, in line with expectations. Furthermore, the success of our initial pilot in Central Europe encourages us to accelerate our operations in this region to secure future growth. This is an exciting opportunity.
The resilient performance in the first half of the financial year and continued confidence in our future prospects has enabled the Board to increase the interim dividend by 5.3%.
I would like to thank the Halfords' team for their efforts in this challenging environment."
Results Presentation
A presentation for analysts and investors will be held, today, from 9.30 a.m. at The City Presentation Centre, 4 Chiswell Street, London EC1Y 4UP.
Enquiries:
| Halfords Group plc (www.halfordscompany.co.uk) | |
| Nick Wharton, Finance Director | +44 (0)1527 513047 |
| Tony Newbould, Investor Relations | +44 (0)7753 809522 (on the day) |
| +44 (0)1527 513113 (thereafter) | |
| Hogarth Partnership | |
| Julian Walker, James Longfield | +44 (0) 207 357 9477 |
Notes to Editors
Halfords (www.halfords.com)
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 and 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 455 stores, including four stores in the Czech Republic, 25 smaller format, neighbourhood stores and six standalone cycle stores, 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.
View the full press release in PDF format.