Halfords Group PLC
03 April 2008
Halfords Group plc ("Halfords")
Pre Close Trading Update
3 April 2008
Halfords, the UK's leading auto, leisure and cycling products retailer, today
issues the following trading update for the 52 weeks to 28 March 2008.
Sales have increased by 7.2% over the equivalent period last year and
like-for-like sales increased by 4.2%. Sales growth was achieved in all
categories, with the strongest performances in Car Maintenance and Cycling.
Effective trading strategies have enabled the company to deliver a gross profit
performance in line with the guidance previously given.
Through the combination of good growth in sales and close scrutiny of costs the
company is expecting to declare a full year profit before tax in line with
market expectations and reflecting the ongoing share buyback programme1
anticipates it will announce high single digit growth in earnings per share.
In the nine week period since the February Interim Management Statement sales
have increased by 7.6% over the equivalent period last year and like-for-like
sales increased by 4.6%. This includes the Easter trading period in weeks 51 and
52, which are non comparable2.
The company's sales in the seven weeks to 14 March (i.e. excluding the two
Easter weeks) therefore provide a more appropriate indicator of current trading.
In this period sales growth, at 6.2%, representing a like-for-like increase of
3.2% was in line with the underlying sales performance reported at the last
company update; and provides further evidence of the resilient nature of the
1. Since the last update on the 7 February 2008 the company has purchased
3,617,500 of its own shares for a consideration of £9,856,132, at an average
price of 272.5 pence per share. Cumulatively since the buy back programme
commenced on 8 June 2006, 18,457,694 shares have been purchased at an average
325.6 pence per share.
The company has entered into an irrevocable and non-discretionary arrangement
with its broker, Citigroup, to repurchase on its behalf and with specified
pre-set parameters, ordinary shares in the company for cancellation during the
Company's closed period commencing on 3 April 2008 and ending on 4 June 2008.
2. The Easter holiday was unusually early in 2008, with Easter Sunday
falling on 23 March. Easter will not fall on this earliest possible date for
another 152 years! An early Easter does not have the same impact on performance
as one falling in a more traditional early/mid April.
Halfords will announce its preliminary results for the 52 weeks ended 28 March
2008 on Thursday, 5 June 2008, when it will provide a full overview and update
on the business. A presentation for analysts and investors will be held at 9.30
a.m. at The City Presentation Centre, 4 Chiswell Street, London EC1Y 4UP.
In order to enhance the information provided to investors, from 29 March 2008
the company will report its sales performance on a quarterly basis for each 13
weeks to the Friday nearest to the end of June, September, December and March.
In the forthcoming 53-week financial year these dates will be 27 June, 26
September, 26 December and 3 April. Halfords will also provide a qualitative
sales update at the time of its Preliminary and Interim Results.
Halfords Group plc (www.halfordscompany.co.uk)
Nick Wharton, Finance Director 44 (0)1527 513047
Tony Newbould, Investor Relations 44 (0)1527 513113
Julian Walker, James Longfield 44 (0)207 357 9477
Notes to Editors
Established in 1892 as F.W. Rushbrooke and subsequently renamed Halfords in
1907, the Company was floated on the London Stock Exchange in June 2004. The
Group employs in excess of 10,500 staff and 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 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 and Urban Escape for its premium range of 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 "we
fit" service for car parts, child seats, satellite navigation and in-car
entertainment systems, and a "we repair" service for cycles.
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
This information is provided by RNS
The company news service from the London Stock Exchange