Key Points For The Half:
Retail delivered a robust revenue performance in Q2 following a difficult Q1
Autocentres produced a double-digit increase in operating profit led by further strong top-line growth
Free cash flow up 47% to 59.5m with continued focus on investment priorities and cash management
Net debt reduced by 23% to 107.9m
Interim dividend of 8p per share maintained
Good progress made in the delivery of strategic initiatives
Matt Davies joined as Chief Executive in October
Dennis Millard, Chairman, commented:
"Our Retail performance improved markedly in the second quarter after a difficult first quarter and, with a proactive trading stance, we took full advantage of the opportunities provided by the 'summer of sport'. We continue to be encouraged by the performance and long-term potential of Autocentres. We also made good progress on channel and category initiatives; central to this is the priority of building a company-wide customer service ethic as well as investing in training and support for colleagues.
Our second-half Retail planning assumptions remain unchanged and cautious given the prevailing pressures on the consumer as we approach the important winter and Christmas trading periods. We continue to plan for a full-year Group Profit before tax and non-recurring items of between 66m and 70m. We have a strong platform for sustainable growth; the management team retains its focus on active trading, cash generation, prudent cost management and the delivery of strategic objectives."
