15 January 2013

 

Halfords Group plc

Interim Management Statement

 

Halfords Group plc ("the Group"), the UK's leading retailer of automotive and leisure products and services and leading independent operator in garage servicing and auto repair, today updates the market on its trading performance for the 15 and 41-week periods to 11 January 2013:

 

	15 weeks % change	41 weeks % change
TOTAL REVENUE
Halfords Group	1.6	0.8
Retail	0.1	-1.2
Autocentres	12.4	15.4
LIKE-for-LIKE (LfL) REVENUE
Halfords Group	1.0	0.3
Retail	0.4	-0.9
Cycling	-1.6	0.7
Car Maintenance	6.1	3.6
Car Enhancement	-1.0	-4.3
Travel Solutions	-8.2	-7.1
Autocentres	5.6	8.9

 

Key Points for the 15-week Period

·      Cycling: an initially weak market for Older-Kids' and Adult-Mainstream Cycles that improved in the final weeks of the period, partially offset by a strong increase in Premium Cycle and Cycle Repairs sales

·      Car Maintenance: a strong performance with parts sales up 13.2% and 3Bs fitting penetration, via our unique wefit offer, up 11%pts to a record 39.5%. Mild and wet-weather conditions affected the demand for winter products  

·      Car Enhancement: improved marketing and stronger range execution supported growth in both Audio and Sat-Nav

·      Travel Solutions: reduced sales of Child Car Seats, given our focus on cash returns

·      Online Retail: a record 10.9% of Retail revenues reached as customers took advantage of Halfords' fulfilment offer

·      Autocentres: another strong revenue performance as management continued to invest for the future

 

Financial Position

There has been no material change in the Group's financial position which remains sound.

 

Planning Assumptions

We do not anticipate a material improvement in short-term trading conditions. Given the Retail revenue performance in the period our plans would indicate Group Profit Before Tax for the year ended 29 March 2013 in the range of £68-72m, a modest upgrade to our prior assumptions. We will continue to exit old inventory as we invest for the next financial year.

 

Matt Davies, Chief Executive, commented:

"We are pleased with the growth achieved in all of the service-led Retail opportunities we had prioritised for increased investment, particularly Car Maintenance. Cycling sales initially disappointed but performed more strongly as the holiday period progressed and we were particularly pleased that momentum has been maintained in sales of Premium Cycles. Autocentres revenue continues to grow as we focused investment on the new-centre opening programme, capacity for future growth and motorists' awareness of the brand.

 

We aim to improve significantly the Halfords customer experience and develop category opportunities where our brand is under-represented in areas such as Cycling Parts, Accessories and Clothing; we are on track to deliver this expanded offer in the next financial year. Together with this and a number of other initiatives outlined earlier in the year, we aim to drive sustainable revenue growth and deliver value for our shareholders."

 

Notes 

1.     Like-for-like sales represent revenues from UK and Irish stores and UK centres trading for greater than 365 days.

2.     Where appropriate, revenues denominated in foreign currencies have been translated at constant rates of exchange

3.     Group Profit Before Tax is before non-recurring items.

 

Enquiries

 

Halfords                                                                                           44 (0) 1527 513 113

Andrew Findlay, Finance Director

Craig Marks, Head of Investor Relations                                                                                                   

 

Maitland                                                                                          44 (0) 207 379 5151

Neil Bennett                                                                                             

Tom Buchanan                                                                                       

 

Conference Call

 

There will be a conference call for investors and sell-side analysts at 8.30am today. The participant dial-in is 44 (0)20 3139 4830 or 44 (0)808 237 0030 (toll free). The PIN is 67359626#.

 

To access a recording of the call, the participant dial-in is 44(0)20 3426 2807 or 44 (0)808 237 0026 (toll free). The PIN is 635702#.

 

A transcript of the call will appear online in due course.

 

Reporting Calendar

 

The Halfords Group plc 52-week pre-close statement will be published on 10 April 2013.

 

15-Week Period

 

We believe that a 15-week trading period, which incorporates the post-Christmas weekend and the first full week of January, more accurately reflects the true Retail trading performance of the Group over the festive season.  In future third-quarter interim management statements will report 15-week and 41-week periods.

 

13 and 39-week Periods to 28 December 2012

To give context to the changes in the reporting of pre and post-Christmas trading, the table below outlines performance for the 13 and 39-week periods ended 28 December 2012:

 

	13 weeks % change	39 weeks % change
TOTAL REVENUE
Halfords Group	0.1	0.3
Retail	-1.6	-1.8
Autocentres	13.0	15.7
LIKE-for-LIKE (LfL) REVENUE
Halfords Group	-0.5	-0.3
Retail	-1.3	-1.5
Cycling	-4.4	0.0
Car Maintenance	4.8	3.0
Car Enhancement	-2.1	-4.8
Travel Solutions	-9.8	-7.5
Autocentres	5.4	9.0

 

 

Historic Performance

 

To give context to the changes in the reporting of pre and post-Christmas trading in the prior year, the table below outlines performance in financial year 2012 for the 13 and 39 week periods ended 30 December 2011; the 15 and 41-week periods are ending 13 January 2012:

 

	13 weeks % change	39 weeks % change		15 weeks % change	41 weeks % change
TOTAL REVENUE
Halfords Group	-2.1	-1.1		-2.3	-1.1
Retail*	-4.4	-2.3		-4.4	-2.6
Autocentres	18.7	12.0		16.9	11.7
LIKE-for-LIKE (LfL) REVENUE
Halfords Group	-3.2	-2.0		-2.7	-2.0
Retail*	-4.8	-2.9		-4.8	-2.9
Cycling	15.1	10.8		14.5	10.7
Car Maintenance	-12.8	-7.0		-12.1	-7.0
Car Enhancement	-12.8	-10.8		-12.7	-10.8
Travel Solutions	-2.2	-3.7		-2.3	-3.7
Autocentres	10.9	5.3		9.8	5.2

 

*'Retail' at the time of original publication was described as 'UK/ROI Retail'

 

 

Notes to Editors

 

www.halfords.com

www.halfordscompany.com

www.halfordsautocentres.com

 

Halfords Group plc

The Group is the UK's leading retailer of automotive, leisure and cycling products and through Halfords Autocentres also one of the UK's leading independent car servicing and repair operator. Halfords customers shop at more than 460 stores in the UK and Republic of Ireland and at halfords.com for pick-up at their local store or direct home delivery. Halfords Autocentres operates from 271 sites* nationally and offers motorists dealership-quality MOTs, repairs and car servicing at affordable prices.

 

Halfords employs approximately 12,000 staff and sells around 10,000 product lines in stores, increasing to around 16,000 lines online. The product offering encompasses significant ranges in car parts, cycles, in-car technology, child seats, roof boxes, outdoor leisure and camping equipment. Halfords own brands include the in-store Bikehut department, for cycles and cycling accessories, Apollo and Carrera cycles and exclusive UK distribution rights of the premium-ranged Boardman cycles and accessories. In outdoor leisure, we sell a premium range of camping equipment, branded URBAN Escape. Halfords offers customers expert advice and a fitting service called "wefit" for car parts, child seats, satellite navigation and in-car entertainment systems, and a "werepair" service for cycles.

 

* at 11 January 2013

 

Cautionary Statement

 

This report is based on information from unaudited management accounts and 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.