Halfords Group plc

Q1 Trading Statement

 

Halfords Group plc ("the Group"), the UK's leading retailer of automotive and leisure products and services and a leading independent operator in garage servicing and auto repair, today updates the market on its trading performance for the 13-week period to 3 July 2015:

 

	% change
TOTAL REVENUE
Halfords Group	3.6
Retail	3.4
Autocentres	5.0
LIKE-for-LIKE (LfL) REVENUE
Halfords Group	3.5
Retail	3.5
Cycling	2.0
Car Maintenance	5.9
Car Enhancement	-0.3
Travel Solutions	9.2
Autocentres	4.0

 

 

 

Highlights for the Quarter

·      Retail: underlying LfL growth of 4.2% adjusting for the timing of Easter

·      Cycling: growth against a strong comparative period; Premium Bikes up 8% and Cycle Repair up 24%

·      Car Maintenance: good performance, driven by Parts and Workshop, up 7% and 10% respectively

·      Car Enhancement: in-car connectivity equipment and dash cams growing 31%, offset by subdued Car Cleaning sales

·      Travel Solutions: strong performance, especially in Camping and Child Safety Seats

·      Online Retail: sales up 8.2% with 91% collected in store

·      Autocentres: positive momentum maintained

 

 

Financial Outlook

All guidance for the full year remains unchanged.

 

 

Jill McDonald, Chief Executive, commented:

"Our Retail business continues to deliver a broad-based top-line performance, against two previous years of strong like-for-like growth. Cycling continues to grow; the highlights in the quarter being Premium Bikes and Cycle Repair, with sales up 8% and 24% respectively. In May we opened our fifth Cycle Republic store in Nottingham and there are further openings planned across the country. Car Maintenance sales were robust with Parts and Workshop up 7% and 10% respectively and Travel Solutions sales were up 9%, with the combination of compelling offers and knowledgeable colleagues boosting sales of roof boxes, cycle carriers, tents and child safety seats. Autocentres' sales momentum was maintained, with LfL of 4%.

 

Our Getting Into Gear plan continues to progress with pace, and we're on track with the Retail trading initiatives and Autocentres priorities we outlined in June."

 

 

Enquiries

 

Halfords	44 (0) 1527 513 113
Andrew Findlay, Chief Financial Officer
Adam Phillips, Head of Investor Relations
Maitland (Media)	44 (0) 207 379 5151
Neil Bennett
Andy Donald

 

 

Notes 

1.     Like-for-like sales represent revenues, including those attributable to Click & Collect, from UK and Irish stores and UK centres trading for greater than 365 days, plus online revenues from direct deliveries

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

3.     The underlying Retail LfL represents the reported Retail LfL plus an adjustment to account for the first week of the 2015 Easter, which fell into the 53^rd week of the previous financial year

 

Conference Call

 

There will be a conference call for investors and sell-side analysts at 10:00am today. The participant dial-in is 0203 139 4830 or 0808 237 0030 (toll free). The PIN is 35699141#. To access a recording of the call, the participant dial-in is 0203 426 2807 or 0808 237 0026 (toll free). The PIN is 659902#. A transcript of the call will appear online in due course.

 

Reporting Calendar

 

Halfords will next report its interim results, for the 26 weeks ending 2 October 2015, and second-quarter trading performance on 12 November 2015.

 

Notes to Editors

 

www.halfords.com

www.halfordscompany.com

www.halfordsautocentres.com

 

Halfords Group plc

Halfords is the UK's leading retailer of automotive, cycling and leisure products and, through Halfords Autocentres, also one of the UK's leading independent car servicing and repair operators. Halfords customers shop at 468 stores in the UK and Republic of Ireland, including five Halfords 'Cycle Republic' shops, and at halfords.com for pick-up at their local store or direct home delivery. Halfords Autocentres operates from 305 sites nationally and offers motorists dealership-quality MOTs, repairs and car servicing at affordable prices.

 

The Halfords group strategy is based on three pillars:

·      Supporting Drivers Of Every Car

·      Inspiring Cyclists Of Every Age

·      Equipping Families For Their Leisure Time

 

The Getting Into Gear plan for the Retail business is based on executing in five key areas in order to deliver a significantly-enhanced customer experience:

 

·      Service Revolution

·      The H Factor

·      Stores Fit to Shop

·      21^st Century Infrastructure

·      Click with the Digital Future

 

Halfords employs approximately 11,000 colleagues and sells around 9,000 product lines in store, increasing to around 165,000 Retail products online. The Retail offering encompasses significant ranges in car parts, cycling products, in-car technology, child seats, roof boxes and camping equipment. Halfords' own cycling brands include Apollo, Carrera, Boardman and 13 cycles, augmented by a range of other brands of cycles and accessories, including Kona, Mongoose, Raleigh and Pinarello. In Auto, the Halfords Essentials and Halfords Advanced ranges are sold alongside brands such as Kärcher, General Electric, Bosch, Garmin and TomTom. In Travel Solutions, Halfords sells a premium range of equipment including camping brands such as CampinGaz and Outwell. 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.

 

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.