Halfords Group plc Preliminary Results Financial Year 2012
Halfords Group plc, the UK's leading retailer of automotive and leisure products and leading independent operator in garage servicing and auto repair, today announces its preliminary results for the 52 weeks to 30 March 2012 ("the period"). All numbers shown in this statement are before non-recurring costs, unless otherwise stated.
Group Financial Summary
|
|
FY12 £m |
FY11 £m |
Change |
|
Total Group Revenue |
863.1 |
869.7 |
-0.8% |
|
UK/ROI Retail |
752.3 |
769.7 |
-2.3% |
|
Halfords Autocentres |
110.8 |
98.1 |
+12.9% |
|
|
|
|
|
|
Gross Margin |
|
|
|
|
UK/ROI Retail |
53.1% |
54.5% |
-140bps |
|
Halfords Autocentres |
65.9% |
66.3% |
-40bps |
|
|
|
|
|
|
Profit Before Tax, before non-recurring items |
92.2 |
125.6 |
-26.6% |
|
Basic Earnings Per Share, before non-recurring items |
33.7p |
43.2p |
-22.0% |
|
|
|
|
|
|
Profit Before Tax, after non-recurring items |
94.1 |
118.1 |
-20.3% |
|
Basic Earnings Per Share, after non-recurring items |
34.2p |
40.7p |
-16.0% |
|
|
|
|
|
|
Net Debt |
139.2 |
103.2 |
|
|
Full-Year Dividend Per Share |
22.0p |
22.0p |
|
The tough economic environment, which particularly impacted motorists, led to a subdued performance in Retail sales and margins in FY12, leading to a decline in Profit Before Tax.
- Our key areas of focus delivered encouraging growth in FY12:
- Within Leisure, Cycling like-for-like revenues increased 9.7%, reflecting a strong performance in both Premium Bikes and Cycle Accessories
- In-store service revenue rose by 22.6% as fitting penetration hit record levels
- Autocentres revenue continued to grow strongly
- Stock and costs were managed well in an inflationary environment
- Continued cash generation underpinned the buyback of £62.3m of Halfords shares and maintenance of a strong full-year dividend
Current Trading
Retail sales in FY13 have been very disappointing so far. In particular we have not seen the usual seasonal demand for Cycling and Outdoor Leisure products. We believe some of these sales are deferred rather than cancelled, and we expect a stronger performance from these categories as the year progresses. Autocentres continues to grow.
Strategy for Growth
In the year ahead we are investing in our key areas of growth, Cycling, Fitting Services and Autocentres. This will accelerate our transition to a contemporary solutions provider and will create up to 1,000 new jobs.
David Wild, Chief Executive, commented on the results:
"In a challenging consumer environment we have made good progress in our key growth areas of Leisure, including Cycles, Fitting Services and Autocentres. Our success in these categories and our detailed market research demonstrates how customers appreciate the help and value we offer and our opportunity for further growth.
As a result we are evolving our strategy to focus on three strategic pillars so that we become the Friend of the Motorist, the Best Cycle Shop in Town and the Starting Point for Great Getaways. In each of these areas we believe we have a unique end to end solution and are well positioned to increase our share in significant markets.
We are investing in these opportunities, specifically in fitting resources, increased marketing and enhancing our multichannel offer. This will accelerate the evolution of Halfords from a traditional retailer to a contemporary solutions provider, will contribute to future growth and create up to 1,000 new jobs.
Halfords continues to be profitable and strongly cash generative and we are seeking to maximise our performance in this demanding retail environment."
