REG - Halfords Group PLC - Annual Financial Report <Origin Href="QuoteRef">HFD.L</Origin> - Part 2

HalfordsAnnouncement

22/06/2017 07:10

- Part 2: For the preceding part double click  ID:nRSV8438Ia 

                                                                                                                                                                                                                                                                                                                                                                                                                                     reinforced by face-to-face learning and assessments. Shops use an accreditation matrix to ensure that all building and fitting is undertaken by competent colleagues.     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Product knowledge among colleagues is promoted through specialist conferences for selected staff (e.g. BikeHut managers). We have also implemented measures to ensure that 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   we attract and retain the best colleagues; for example, engagement surveys aim to identify opportunities to reduce colleague turnover, which is at its lowest for several 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   years. We have again been recognised as one of the Sunday Times "30 Best Big Companies to Work For". Our recruitment processes are now centralised to improve efficiency  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   and consistency. Our products are risk assessed and rigorously tested for quality and safety by qualified engineers in our dedicated quality team. We monitor customer    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   comments and complaints and, when necessary, we have established recall processes. We work closely with suppliers and frequently visit factories to ensure manufacturing  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   standards are maintained. Our Autocentres utilise a comprehensive quality assurance process with checks by centre managers. Technicians are regularly checked to ensure   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   quality of workmanship, and the priority status allocated to individual jobs is reviewed to ensure safety and prevent overselling. There is a dedicated Operations Quality 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   team. We utilise mystery shoppers. We have recently adopted extended opening hours and implemented a new technician pay grading scheme to drive quality.                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 Information Technology ("IT") Systems and Infrastructure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 In common with most businesses, Halfords is dependent on the reliability and suitability of a number of important IT systems where any sustained performance problems including those caused by cyberattack) could potentially compromise our operational capability for a period of time, impacting on shops, centres or warehouse, multi-channel and distribution systems. With ambitious growth plans for our multi-channel offer, our trading capacity could be affected by internal and external systems' resilience and interdependencies.  Commercial data could be lost or stolen through cyberattack, sabotage, or other security breaches. Press reports and professional advisors indicate that cyberattacks are becoming more sophisticated and common.                                                                                                                                                                                                               Extensive controls are in place to maintain the integrity of our systems and to ensure that systems changes are implemented in a controlled manner. Halfords' key trading 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   systems are hosted within a secure data centre operated by a specialist company remote from our support centre. These systems are also supported by a number of disaster  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   recovery arrangements including a comprehensive backup and patching strategy, and a hotlink secure data centre hosted in a different location. IT recovery processes are  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   tested regularly.  We review our IT security processes and risk assessments on an ongoing basis and our IT team has dedicated IT security and continuity experts. We      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   utilise appropriate firewalls, and physical and logical system access controls. We have undertaken network penetration testing.  The Audit Committee is briefed by the    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Chief Information Officer on the business' IT security framework and continues to closely monitor this area.                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 Dependence on Key Management Personnel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 The success of the Group's business depends upon its senior management closely supervising all aspects of its business, in particular, the operation of the shops and Autocentres, including the appropriate training of inshop and centre colleagues, and the design, procurement and allocation of merchandise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Our Remuneration Policy outlined on pages 78 to 88 details the strategies in place to ensure that high calibre executives are attracted and retained. The Group looks to  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   improve its senior manager cadre through operating a talent management process to help individuals achieve their full potential within Halfords and to ensure that        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   appropriate succession plans are in place to meet the future needs of the business. On 3 May 2017 the Chief Executive Officer, Jill McDonald, tendered her resignation.   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   She will continue to work her 6 month contractual notice period. The search for her successor is underway. Crucially, we have a talented group of engaged colleagues and a 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   strong executive team who remain fully focused on the implementation of the Group's strategy. At a junior level, the Group continues to invest in graduate and            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   apprenticeship programmes and shop and Autocentre colleague training and development.                                                                                     
 
 
Directors' Responsibility Statement 
 
The Annual Report and Accounts contains a responsibility statement in the form
set out below. 
 
Directors' responsibilities 
 
The Directors are responsible for preparing the Annual Report and the Group
and parent Company financial statements in accordance with applicable law and
regulations. 
 
Company law requires the Directors to prepare Group and parent Company
financial statements for each financial year. Under that law they are required
to prepare the Group financial statements in accordance with International
Financial Reporting Standards ("IFRSs") as adopted by the European Union
("EU") and applicable law and have elected to prepare the parent Company
financial statements in accordance with UK Accounting Standards. 
 
Under company law the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and parent Company and of their profit or loss for that
period. In preparing each of the Group and parent Company financial
statements, the Directors are required to: 
 
·     select suitable accounting policies and then apply them consistently; 
 
·     make judgements and accounting estimates that are reasonable and
prudent; 
 
·     for the Group financial statements, state whether they have been
prepared in accordance with IFRSs as adopted by the EU; 
 
·     for the parent Company financial statements, state whether applicable UK
Accounting Standards have been followed, subject to any material departures
disclosed and explained in the parent Company financial statements; and 
 
·     prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and the parent Company will continue
in business. 
 
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the parent Company's transactions and disclose
with reasonable accuracy at any time the financial position of the parent
Company and enable them to ensure that its financial statements comply with
the Companies Act 2006. They have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of the Group and to
prevent and detect fraud and other irregularities. 
 
Under applicable law and regulations, the Directors are also responsible for
preparing a Strategic Report, Directors' Report, Directors' Remuneration
Report and Corporate Governance Statement that complies with that law and
those regulations. 
 
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's Group website.
Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions. 
 
Responsibility Statement 
 
We confirm that to the best of our knowledge: 
 
·     the financial statements, prepared in accordance with the applicable set
of accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and 
 
·     the Annual Report and Accounts include a fair review of the development
and performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties. 
 
We consider the Annual Report and Accounts, taken as a whole, is fair,
balanced and understandable and provides the information necessary for
shareholders to assess the Group's position and performance, business model
and strategy. 
 
Approved by order of the Board. 
 
Dennis Millard 
 
Chairman 
 
25 May 2017 
 
This information is provided by RNS
The company news service from the London Stock Exchange