Halfords Group PLC (HFD)
Halfords Group PLC: 20-Week Trading Update: Financial Year 2024
06-Sep-2023 / 07:00 GMT/BST
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6 September 2023
Halfords Group plc
20-Week Trading Update: Financial Year 2024
Strong market share gains across the Group with +7.8% Group LFL revenue performance.
Halfords Group plc ("Halfords" or the "Group"), the UK's leading provider of Motoring and Cycling services and
products, today announces its trading update for the 20 weeks to 18 August 2023 (the "Period").
Headlines
-- Strong trading across the Group with total revenue up +14.1% driven by needs-based categories, with
Autocentres +34.6% and Retail +3.7%.
-- Strong Services and B2B performance accounting for 48% of Group revenue (+6ppts YOY) and 29% (+5ppts YOY)
respectively, with B2B winning a significant nationwide contract with Yodel.
-- Market share gains across all categories and in line with expectations as set out at our Capital Markets
Day ("CMD") in April.
-- Underlying Services markets remain robust, whilst discretionary categories have been softer in Q2 to-date
vs Q1.
-- Trading year to date in line with expectations. Full underlying profit before tax ("PBT") expected to be
between GBP48m and GBP58m(1).
Graham Stapleton, Chief Executive Officer, commented:
"It's been a good start to the year for Halfords, and our ongoing focus on essential maintenance and servicing is
driving a strong performance in our Autocentre and Retail Motoring business. Group Motoring, which now accounts for
over 75% of our total sales, is a resilient sector and we're progressing with our long-term plans to become a
one-stop-shop for motoring ownership.
"We're continuing to do everything that we can to support our customers through the cost-of-living crisis and are
determined to offer them unrivalled value. For instance, our research shows that motorists who use manufacturers'
franchised dealerships can pay over 50% more for repairs compared with Halfords. With the average cost of car ownership
pushing GBP300 a month, the last thing hard pressed motorists need, is to pay over the odds for repairs. That's why,
today, we're launching a campaign called Dealer or No Dealer, designed to raise motorists' awareness of the choice and
cost savings available to them for servicing and repairs, and that any work carried out by Halfords will not affect
their manufacturer warranty."
Group revenue summary
Group Financial Summary 1-Year vs FY23
Total LFL
Halfords Group +14.1% +7.8%
Autocentres +34.6% +16.6%
Retail +3.7% +3.4%
Motoring +7.7% +7.5%
Cycling -1.7% -2.7%
Financial performance:
-- The Group produced a strong like-for-like performance of
+7.8%, with Autocentres +16.6% and Retail +3.4%,despite the
unfavourable weather conditions throughout Spring and July to
August.
-- Within Retail, needs-based products and services drove a
strong Motoring LFL of +7.5% whereas the morediscretionary areas of
Cycling, Car Cleaning and Touring were adversely impacted by
unfavourable weather and lowconsumer confidence. Cycling, which now
only represents 25% of total revenue, was down -2.7% LFL.
-- Growth in market share across all categories and ahead of the
year one targets underpinning our CMDprojections set out in
April.
-- Market conditions were more varied, with Services stronger
than CMD assumptions, but Tyres, Motoringproducts and Cycling
tracking behind. Our strong market share performance helped
mitigate the marketunder-performance.
-- Group service-related sales accounted for 48% of Group
revenue (+6ppts YOY).
-- B2B sales accounted for 29% of Group revenue (+5ppts YOY),
with particularly strong performance inCycle2Work and Commercial
Fleet Services.
-- Stock continues to be well managed across the business and in
line with expectations.
Strategic and operational update:
-- Cost and efficiency programme on track to deliver year one
target of GBP30m across product cost andoperating cost
reductions.
-- Following the Lodge Tyre acquisition in October 2022, our
enlarged Commercial Fleet Service business haswon a significant
nationwide contract - with Yodel, the UK parcel carrier, providing
service support for its entireUK truck and van fleet.
-- Ongoing focus on garage utilisation has driven a year-on-year
improvement in utilisation in every monthso far this year. A
targeted local marketing approach has supported a 40% reduction in
the number of under-utilisedgarages.
-- Our Motoring Loyalty Club is continuing to perform well, now
exceeding 2.5m members. Club memberscontinue to shop with greater
frequency, and greater spend per visit, at +GBP266 versus non-club
members.
Outlook:
-- Trading year to date in line with expectations with services
remaining robust but discretionary marketssofter. Full year PBT
expected to be between GBP48m and GBP58m(1).
-- As communicated at our FY results in June, we expect our H1
underlying profit to be significantly belowlast year due to changes
in the valuation of foreign exchange contracts that are not hedge
accounted, and the factthat a greater proportion of our targeted
GBP30m cost savings will be delivered in the second half, helping
to offsetmaterial cost inflation present throughout FY24.
-- H2 profit is expected to be significantly ahead of last year,
with Autocentres making up a higherproportion of Group PBT
alongside increased cost and efficiency savings versus FY23.
(1) At our Preliminary results presentation in June 2023 we
shared our expectation that PBT would grow in FY24 (from FY23 PBT
of GBP51.5m) and that we were comfortable with the analyst
consensus of GBP53.3m. Current analyst consensus of PBT is
GBP53.7m, with a analyst forecasts ranging between GBP51.0m and
GBP57.7m.
Enquiries
Investors & Analysts (Halfords)
Jo Hartley, Chief Financial Officer
Neil Ferris, Group Financial Controller
Andy Lynch, Head of Investor Relations +44 (0) 7483 457 415
Media (Powerscourt) +44 (0) 20 7250 1446
Rob Greening halfords@powerscourt-group.com
Nick Hayns
Elizabeth Kittle
Results presentation
A conference call for analysts followed by Q&A will be held
today, starting at 09:00am UK time. Attendance is by invitation
only. A copy of the transcript of the call will be available at
www.halfordscompany.com in due course. For further details please
contact Powerscourt on the details above.
Next trading statement
On 22 November 2023 we will report our FY24 Interim results for
the period ending 29 September 2023.
Notes to Editors
www.halfords.com www.avayler.com www.tredz.co.uk
www.halfordscompany.com
Halfords is the UK's leading provider of motoring and cycling
services and products. Customers shop at 393 Halfords stores, 2
Performance Cycling stores (trading as Tredz and Giant), 643
garages (trading as Halfords Autocentres, McConechy's, Universal,
National Tyres and Lodge Tyre) and have access to 264 mobile
service vans (trading as Halfords Mobile Expert, Tyres on the Drive
and National), 479 commercial vans and 5 HME Cycling vans.
Customers can also shop at halfords.com and tredz.co.uk for pick up
at their local store or direct home delivery, as well as booking
garage services online at halfords.com.
Cautionary statement
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 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.
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Group. The issuer is solely responsible for the content of this
announcement.
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ISIN: GB00B012TP20
Category Code: TST
TIDM: HFD
LEI Code: 54930086FKBWWJIOBI79
OAM Categories: 2.2. Inside information
Sequence No.: 269422
EQS News ID: 1719551
End of Announcement EQS News Service
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(END) Dow Jones Newswires
September 06, 2023 02:00 ET (06:00 GMT)
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