Halfords proposes a final dividend of 5 pence per share

DividendMax Ltd.

Halfords proposes a final dividend of 5 pence per share

Balancing their capital allocation priorities with the importance of the ordinary dividend to many of their investors, Halfords has proposed a final dividend of 5 pence per share, which would result in a full year dividend of 8 pence. This would be a 20% reduction versus the prior year, reflecting lower profits and the application of their new dividend policy. The final dividend would be paid on 13 September 2024 with the corresponding ex-dividend date of 8 August 2024 and the record date of 9 August 2024.

Other financial highlights include:

  • Share gains in all four of their core markets
  • Strong Group revenue growth of +7.9% and +5.0% on a Like-for-Like (“LFL”) basis. 
  • A strong performance in Autocentres and the success of their Better Buying programme helped to offset FX headwinds and increased promotional activity driven by Cycling market consolidation, resulting in gross margin of 48.5%, down 40bps.
  • Delivered cost savings of over £35m, ahead of original target of £30m, bringing cumulative cost savings to c. £70m in the last three years. 
  • Balance sheet strong and liquidity well managed. Retail inventory down £24m versus last year. Net debt, excluding leases, of £8.2m. RCF extended to April 2028.
  • Underlying profit before tax (“PBT”) from continuing operations was down 7.9% to £43.1m. Including discontinued operations, underlying PBT was down 18.3% to £36.1m, which was in line with revised market guidance.

Companies mentioned