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REG-Halfords Group PLC Halfords Group PLC: Annual Financial Report

============

   Halfords Group PLC (HFD)
   Halfords Group PLC: Annual Financial Report

   28-Jul-2022 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   Halfords Group plc

    

   Annual Report and Accounts for period ended 1 April 2022

   including the Notice of Annual General Meeting ("AGM") - convened for 7
   September 2022

    

   The Company announces that the Annual Report and Accounts for the period
   ended 1 April 2022 and Notice of Annual General meeting of the Company,
   have been posted or otherwise made available to shareholders and published
   on its website  1 www.halfordscompany.com.

    

   The Company's 2022 AGM will be held at Halfords Group plc, Support Centre,
   Icknield Street Drive, Washford West, Redditch, B98 0DE on Wednesday 7
   September 2022 commencing at 3:00pm. 

    

   As detailed in the Notice of AGM, we strongly encourage shareholders to
   vote on all resolutions by casting their votes through the use of a proxy
   (details of how to do this can be found in the Notice of AGM). This
   remains important notwithstanding the removal of the UK Government’s
   coronavirus restrictions.

    

   The Board is committed to ensuring that shareholders can exercise their
   right to ask questions, and as per last year, shareholders will be able to
   submit questions to the Directors in advance of the AGM via email to the
   Company Secretary ( 2 tim.ogorman@halfords.co.uk) Written answers to all
   questions received will be sent directly to shareholders by email and
   answers to frequently asked questions will, to the fullest extent
   practicable, be published on the Company’s website ahead of the meeting
   or, to the extent that has not been possible, will be addressed at the
   meeting itself.

    

   In accordance with Listing Rule 9.6.1, a copy of the Annual Report and
   Accounts and the Notice of Annual General Meeting of the Company have been
   uploaded to the National Storage Mechanism and will be available for
   viewing shortly at 
    3 https://data.fca.org.uk/#/nsm/nationalstoragemechanism

    

    

   Tim O’Gorman

   Company Secretary

   Halfords Group plc

     

   The Appendix to this announcement is a supplement to our preliminary
   statement of Financial Results made on 16 June 2022 (the "Final Results
   Announcement"). It contains the information required pursuant to
   Disclosure Guidance and Transparency Rule 6.3.5 that is in addition to the
   information communicated in the Final Results Announcement and should be
   read together with the Final Results Announcement. This information is not
   a substitute for reading the full Annual Report and Accounts for the year
   ended 1 April 2022.

    

   Appendix

    

   The Chief Financial Officer’s Report in the preliminary statement of the
   Final Results Announcement issued on 16 June 2022 includes a commentary on
   the principal commercial and financial risks and uncertainties to
   achieving the Group’s objectives.

    

   Further details of other principal risks and uncertainties relating to the
   Halfords Group are set out on pages 72 to 77 of the 2022 Annual Report and
   Accounts. Specific financial risks (e.g. credit risk, foreign currency)
   are detailed in note 22 to the Financial Statements on pages 193 to 198 of
   the 2022 Annual Report and Accounts.

    

   The following is extracted in full and unedited form from the 2022 Annual
   Report and Accounts.

    

    

   Our Principal Risks and Uncertainties

    

   Capability and Capacity to Effect Change

   Failure to build sufficient capacity and capability (in terms of our
   people, processes, and systems) to successfully implement the
   transformation required across the business may result in the expected
   benefits of our strategy not being delivered, thereby risking the future
   sustainability of the business.

   Current Mitigation                          Focus in 2023
                                               • Continue to align our
   • A dedicated Transformation and Change     Transformation plan with the
   team led by the Chief Transformation        key objectives of our
   Officer and supported by experienced        corporate strategy.
   Programme and Project Managers has enabled
   progress to be made during a period of      • Closely monitor progress on
   increased capital investment and focus on   individual programmes,
   delivery of significant strategic           realigning requirements and
   initiatives.                                resources where relevant.

                                               • Embedding a new
                                               organisational design to
   • The continued advancement of our change   strengthen with even greater
   programme is managed through a              focus on best practice change
   Transformation Board, providing the         management and adoption,
   necessary governance for delivery of the    delivery of benefits and
   strategy. The Transformation Board ensures  standardisation of process
   there is a robust approval process for each
   project, allocates resource and monitors     
   progress. Programme and Project Managers
   are in place within the business to whom    • Delivery of a new operating
   projects can be assigned and this has been  model, specifically
   supplemented by specialist resource to
   boost capability. In affecting change,      in technology and digital
   Halfords is requiring all contributing      teams, will drive more agile,
   colleagues to                               effective and efficient
                                               delivery of changes,
   observe the principles of Responsible,
   Accountable, Consulted, and Informed        with a greater emphasis on the
   (“RACI”)                                    unlocking of value

                                               to stakeholders

   Stakeholder Support

   Failure to secure and maintain our stakeholders’ (investors, suppliers,
   colleagues) support for our strategy will mean they may lose confidence in
   the business and withdraw their resources.

    

   Current Mitigation                         Focus in 2023
                                              • Maintain progress on the
                                              delivery of our strategic

                                              objectives.
   • Throughout the year, we demonstrated
   progress in the execution of our strategy,  
   building confidence in external and
   internal stakeholders.                     • Address colleague engagement
                                              challenges through a regular
                                              cycle of survey and review.

   • Our equity placing in FY22 received       
   exceptional support from our investors,
   and we continue to see strong progress in  • Proactive investor relations
   both customer NPS and colleague engagement programme of events

                                              and communication with a
                                              planned Capital Markets day for
                                              the second half of the year.

    

   Value Proposition

   If investment in our motoring product value proposition and Group value
   perception is insufficient to retain existing customers and/or attract new
   ones, and/or we continue to lose market share to online retailers and
   discounters, the impact could be a loss of sale volume. Balancing price
   investment will be important in the current environment and there is a
   risk that investing in price without a corresponding increase in volume
   leads to a diminution of financial returns, but equally, increasing prices
   outside of market movements could create further damage to our value
   perception.

    

   Current Mitigation                               Focus in 2023
                                                    • Introduction of a new
                                                    halo message to support a

   • To differentiate ourselves in a competitive    change in perception over
   retail market, our vision is to consolidate      the medium to long term.
   Halfords as a super-specialist in motoring and
   cycling. Our strategy emphasises the importance   
   of creating value for the customer by delivering
   services alongside the sale of a product.        • Establishment of the
   Progress continued through a refreshed financial motoring club help club
   services campaign and ongoing Cycle to Work
   proposition supporting greater accessibility for customers enjoy greater
   our customers, further enhanced by the launch of savings and benefits and
   our pre-pedalled bikes offering.
                                                    ensure we help customers
                                                    motor for less across the
                                                    UK.
   • Launch of the Halfords motoring club loyalty
   programme, designed to reward loyal customers     
   and inspire a greater proportion to shop across
   the Group.                                       • Further investment in
                                                    pricing motoring products
                                                    to deliver greater value
                                                    for customers.

    

   Brand Appeal and Market Share

   Investment in awareness of our brand and our services is insufficient to
   increase our brand relevance, in which case we will be unable to maintain
   and grow our customer base or improve our customer shopping frequency and
   spend and correspondingly build market share.

    

   Current Mitigation                      Focus in 2023
   • Building on a positive response to    • Integration of National will
   our status as an essential retailer we  support greater brand
   have grown awareness of our Halfords
   Mobile Experts and garage services.     awareness of garages and mobile
   Customer NPS and satisfaction has       vans.
   achieved record levels for Trust Pilot
   and Google scores for the Group          

   .                                       • Promotion of the motoring club
                                           offering free and
   • Improvement of our cycling
   proposition, allied with better than    premium plans.
   market availability and support for the
   cycle to work voucher scheme, has        
   strengthened market share
                                           • Investment in the growth in
                                           electric mobility to

                                           strengthen our market-leading
                                           proposition
   Climate Change and Electrification

   The climate crisis is already having a profound effect through extreme
   weather events – floods, drought and rising sea levels – all of which have
   the ability to disrupt our supply chains and impact our ability to operate
   our business effectively. These risks have been assessed in detail and
   whilst flooding is likely to impact select Halfords stores and garages
   across the UK, our most material climaterelated risks and opportunities
   are in response to the evolving regulatory landscape; in particular, the
   ban on new internal combustion engine (“ICE”) vehicles being sold in the
   UK from 2030 as part of the UK Government’s net zero ambitions. More
   sustainable mobility options, including electric vehicles, E-bikes and
   E-scooters are therefore going to be crucial over the next decade as the
   country prepares for the shift away from conventional fuel sources and
   transition to a lower-carbon economy. This transition will impact our
   motoring and cycling business in the short, medium and long-term.

    

   Failure to respond adequately to the demand for sustainable mobility
   options through our products and servicing offers could lead to a loss in
   confidence, market position and revenue.

    

   Our service proposition does not match customer demand for electrification
   solutions in motoring and cycling, leading to profound

   disruption in our core markets.

    

   Failure to deliver against our climate strategy and net zero targets,
   leading to a loss in confidence from our stakeholders and potential
   reputational damage.

    
                                           Focus in 2023

                                           • Continue to work with Government
                                           to support the

                                           path to legality for private
                                           E-scooters.
   Current Mitigation
                                            
   • Robust Electrification strategy –
   discussed at the Transformation Board   • Continue to train and equip our
   regularly. Challenges, performance and  colleagues to work safely and
   successes are analysed, and strategy    confidently on hybrid and battery
   regularly adjusted as appropriate.      EVs and continue to meet all
                                           appropriate regulatory standards.
    
                                           • Focus on growing the penetration
   • Regular monitoring of legislative     of hybrid and
   changes, climate-related due diligence
   and reporting requirements as well as   battery electric vehicles in our
   monitoring of the regulatory            fleet.
   environment for changes to policies
   around e.g., sale of ICE vehicles,       

   tax breaks for e-mobility or            • Further Board training on
   infrastructure evelopments              climate change and the

   • Regular landscape monitoring for      Board’s due diligence
   electric vehicles (“EVs”) both from a   requirements, including
   manufacturing side and consumer uptake
   side so that we canappropriately        specialist training for those
   respond to the rise of e-mobility.      directly responsible for

                                           climate-related issues.

   • Task Force on Climate-related          
   Financial Disclosure (“TCFD”) roadmap
   developed and being actioned to support • Develop a process whereby
   ongoing reporting and risk management   climate-related risks and
   requirements.                           opportunities can be updated on an
                                           annual basis.
    
                                           • Integrate climate risk relating
   • Science-based carbon targets          to weather (floods, etc) into risk
   developed to tackle the immediate       management process for our estate.
   carbon emissions reductions required
   across our business and supply chain.    
   These will form the foundations for our
   net zero pathway and will be monitored  • Begin collecting supply chain
   to ensure we hit our longer-term net    data on Scope
   zero target.
                                           3 carbon emissions and climate
                                           management,

   • Investment in systems approved that   particularly for areas of supply
   will enable the collection of supply    that may be
   chain emissions, to measure, monitor
   and reduce our Scope 3 emissions –      disrupted due to severe weather.
   which make up a significant proportion
   of our overall carbon footprint.         

                                           • Develop and report on Halfords
                                           Net Zero plan;

                                           headline information on how we
                                           will transition to

                                           a lower-carbon economy

    

   Sustainable Business Model

   Alongside pre-existing changes in customer habits and expectations, the
   recent spike in UK supply chain and consumer inflation is creating
   challenging economic conditions. Unless we can continue to mitigate the
   significant levels of cost inflation (through cost mitigation and savings,
   growth in new business areas, and increasing selling prices), we will be
   unable to maintain a sustainable business model.

    

   Current Mitigation                          Focus in 2023
                                                • Strategic programme focused
                                               on selling more

                                               full solutions to customers,
                                               supported by digital

                                               technology.

                                                
   • An ongoing strategic focus on the growth
   of services will build more stable revenue  • Cross-shop sales
   streams, lessening the Group’s relative     opportunities boosted by
   exposure to discretionary expenditure.      launch of the new Motoring
                                               Loyalty Club programme.
   • Selling solutions and cross-shop
   initiatives will maximise the revenue from   
   existing transactions.
                                               • Customer referral encouraged
   • Detailed price/elasticity analysis        from Retail to
   alongside price trials will optimise
   consumer pricing decisions.                 Autocentres/Halfords Mobile
                                               Experts via new
   • Long-standing supplier relationships will
   be optimised to extract value from supplier services roles in Retail.
   contributions/support.
                                                
   • A new Cost Transformation framework
   programme has been established to target    • Cost Transformation
   cost reduction during FY23/FY24.            programme established to focus
                                               on short-, medium- and
   • US dollar hedging programme in place.     long-term cost reduction
                                               opportunities.
   • Recent three-year refinancing extended
   for a fourth year.                           

                                               • Ongoing ‘goods for resale’
                                               supplier discussions

                                               targeting mutual value
                                               opportunities.

                                                

                                               • Fixed cost contracts entered
                                               into for inflationary cost
                                               categories – e.g. Freight and
                                               Utilities.

                                                

                                               • Rental costs reduced through
                                               property renegotiations;
                                               underperforming stores/garages
                                               closed at lease renewal.

                                               • Productivity analysis
                                               ongoing through digital

                                               technology.

                                                

                                               • New Group Data Platform
                                               identifying sales, cost and
                                               productivity opportunities.

                                                

                                               • FX hedging programme.

                                                

                                               • Continuing to focus on
                                               margin improvement,

                                               eliminating unnecessary cost
                                               through targeted

                                               efficiencies and scale
                                               benefits.
    

   Regulatory and Compliance

   A failure to adhere to our legal and/or regulatory obligations for some or
   all of the Group’s activities leads to an inability to meet our
   responsibilities to stakeholders and/or the imposition of financial
   penalties, placing a strain on the business.
   Current Mitigation
                                               Focus in 2023
   • There is continual monitoring of legal
   and regulatory developments for all regions • Continued monitoring of
   where the Group operates. A suite of        legal and regulatory
   policies sets out the Group’s commitment to
   conduct its business with honesty and       developments for all regions
   integrity. The senior leadership team       where the Group
   communicates tone from the top to provide
   guidance to colleagues on all policy        operates.
   commitments.
                                                
    
                                               • Increased headcount within
   • Compliance training is provided to new    the Health and Safety function
   colleagues as required with refresher       to support the growth of the
   courses thereafter. Regular horizon         Group.
   scanning is undertaken to capture new
   regulations and requirements.                

                                               • Review and improvement of
                                               policies supported
   • We have a code of conduct with our
   suppliers whom we monitor for compliance    by training programmes for
   across ethics: nvironmental management;     colleagues.
   labour practices; and human rights.
                                                
    
                                               • Regular training and
   • Health and safety, data protection and    information provided through
   Financial Conduct Authority compliance are  user-friendly channels.
   managed by experts reporting to dedicated
   committees with representatives across the   
   business to assess our regulatory rigour.
                                               • Establishment of a new
                                               Finance Risk Committee to
                                               focus on all aspects of
   • An established whistleblowing process     financial risk and compliance.
   enables colleagues to report suspected or
   actual wrongdoing in confidence

    

   Service Quality

   The services we provide fall below the quality standards to which we are
   committed, placing customers at risk of harm.

    

   Current Mitigation                         Focus in 2023
                                              • Stores and Service calls to
                                              be migrated to self service or
                                              digital channels for ease and
                                              optionality for customers to
                                              access support in channel of
                                              choice.

                                               

                                              • Our Retail Plan will remain
   • All colleagues are provided with         unchanged into FY23
   dedicated training and adhere to
   established quality control and safety     to ensure we drive consistency
   procedures, with compliance audits by      across the estate
   management. We also have a dedicated
   compliance team monitoring our regulated   and continue the focus on
   activities.                                embedding the Retail

                                              Operating Model.

   • In Autocentres our digital operating      
   platform PACE enables increased workflow,
   productivity, and quality assurance. PACE  • An annual skills plan ensures
   drives service quality by requiring        we are able to maintain our
   quality controls to be completed on all    skill level as we drive down
   workshop                                   our labour turnover.

   colleagues as determined by the Technician  
   Quality Rating. All our Quality
   Controllers follow an approved training    • Integration of National
   pathway and receive refresher training     garages to include the
   annually.
                                              adoption of the Halfords
                                              Quality procedures and roll out
                                              of PACE.
   • We have a Retail Contact Centre that
   provides a level of call answer rates that  
   ensures we can provide a quality service
   to our customers whatever channel they     • Our Operational Excellence
   choose.                                    team will continue to

                                              review our inventory of tools
                                              to do the job.

                                               

                                              • Fusion will be our focus on
                                              our next ‘go to’ operating
                                              model as we roll out Core and
                                              Enhanced formats.

    

   Cyber Security

   If we fail to sufficiently prevent, detect, and respond to cyber incidents
   and attacks they may result in disruption of service, compromise of
   sensitive data, financial penalties from regulatory authorities, financial
   loss, and reputational damage.

    

   Current Mitigation                  Focus in 2023
                                       • Consolidate technical cyber security
                                       solutions across the Group, including
                                       acquisitions.
   • Our security partner, TCS,
   provides first line assurance        
   security operations capabilities
   including vulnerability management, • Mature processes for internal
   email filtering, and website        control assessments to improve
   security.                           identification and ongoing management
                                       of cyber risk. Conduct gap analysis
                                       against the CIS Critical Security
                                       Controls for critical systems.
   • Within our Risk Management        Remediate findings to ensure critical
   Framework our information Security  systems are protected.
   team provides the second line
   assurance role identifying and       
   managing cyber-related risk, and
   developing and implementing our     • Mature cyber resilience of critical
   internal control framework.         systems, including both proactive and
                                       reactive incident response
                                       capabilities.

   • Third line assurance is provided   
   by Internal Audit.
                                       • Mature processes and documentation
                                       relating to

   • A perpetual education and         security of data focusing first on
   awareness campaign is provided to   regulated personal data of both
   all colleagues. Regular briefings   customers and colleagues.
   promote an understanding of the
   risks to our data and the benefits   
   of good security practices.
                                       • Conduct a network security review
                                       including

   • The Audit Committee is regularly  segmentation and firewall positioning,
   briefed by senior Technology        legacy and
   management on the business’ cyber
   security framework                  end-of-life devices, and regular
                                       security testing

                                       (vulnerability scanning and
                                       penetration testing)

    

   Colleague Engagement/Culture

   Our employment model may not be sufficiently attractive to recruit and
   retain the talent that we need. We do not maintain a sufficiently positive
   culture, failing to support a diverse and inclusive community.

    

   Current Mitigation                      Focus in 2023
                                           • Implementation of Year 1 of our
   A five-year People Strategy that        People Strategy with activities
   develops the colleague journey across   focused on delivering improvements
   the areas of ‘Find me, Train me, Grow   to the colleague journey of ‘Find
   me, Keep me’ and that creates the       me, Train me, Grow me, Keep me’.
   opportunity for a career at Halfords
   with an employee brand ‘Your Journey,   • Benchmark our pay and benefits
   Our Journey – make it your own’.        to ensure we are competitive in
                                           the market.
   • The continued development of our
   colleague engagement programme and      • Move to an engagement model that
   survey, and further focus on our        inspires ongoing engagement,
   colleague network groups.               listening and action.

   • Through the provision of wellbeing    • Develop our colleague network
   facilities and regular updates using    groups to support change in areas
   huddles and blogs we keep our           of diversity that develops our 
   colleagues informed and supported.      attraction and engagement with our
                                           colleagues.

    

    

   Skills Shortage

   We may be unable to recruit, retain and develop enough people to have the
   different mix of skills that we need at all levels across the business, in
   the near and longer term.

    

   Current Mitigation                        Focus in 2023
                                             • Launch our employee brand and
                                             integrate through our attraction
                                             and recruitment materials.
                                             Broaden our attraction resources
                                             and develop simpler and quicker
                                             recruitment processes.
   • We have reduced our reliance on
   external recruitment and as part of our   • Develop and expand our
   colleague strategy developed our internal apprenticeship strategy and the
   pipeline for technical and leadership     Halfords Academy to grow our own
   capability. We have also further          technical skill base.
   developed crossgroup career pathways and
   succession planning as well as continued   
   investment in our training and
   development.                              • Expand our ‘Tyre fitter to
                                             Tech’ programme and
   • Training and development are a
   fundamental part of our business and      change hiring approach to
                                             recruit on behaviour as
   a great attraction for new applicants. We
   apply a targeted approach to              we will train the skill.

   further enhance skill levels for centres   
   as we do with stores, by mapping
                                             • Develop a cross-group approach
   against the optimal skills mix.           to talent and

                                             succession.

                                              

                                             • Investment in our selling
                                             skills across Group

    

   IT Infrastructure Failure

   Failure in our IT system(s) may cause significant disruption to, or
   prevention of, normal business-as-usual activities

    

   Current Mitigation                        Focus in 2023
                                             • Continue progression towards a
   • Extensive controls are in place to      fully cloud-based
   maintain the integrity of our systems and
   to ensure that systems changes are        hosting structure with a
   implemented in a controlled manner. We    transfer of risk to cloudbased
   have resilient infrastructure in place    service providers who can
   for remote working colleagues to access   maintain higher levels of
   Halfords hosted applications, such as     contracted availability.
   SAP.
                                              
   • Halfords’ key trading systems are
   hosted securely within data centres       • Reduce dependencies on legacy
   operated by a specialist company and in   and end-of-life
   specialist cloud services operated by
   Microsoft. These systems are supported by systems for key
   disaster recovery arrangements, including business-as-usual activities.
   comprehensive backup and patching
   strategies. IT recovery processes are     • Deep-dive analysis into
   tested regularly.                         targeted areas of

                                             infrastructure, managed through
                                             the Risk Committee.

   Disruption to end to end supply chain

   The Halfords end to end (“E2E”) supply chain is an integration of the
   process from sourcing of products (including the raw material procurement
   and product design by our supply partners) through to scheduling and
   delivery of goods to our customers (through our distribution centre (“DC”)
   network and via stores or direct to consumer).

    

   Disruption to the E2E process creates a major impact to customer
   fulfilment and/or customer-facing price increases due to supply shortages,
   increased demand for raw materials impacting availability and input price,
   production delays that lead to an extension in supply lead times,
   logistics delays in the form of shipping of goods, or the potential
   closure of one of our distribution centres, all of which challenges our
   ability to meet sales and profit projections.

    

   Current Mitigation                        Focus in 2023
   • The need to respond to the pandemic in
   FY21 has tested our business continuity
   plans and given us confidence in
   alternative supply chain solutions and
   resilience.

    

   • Our Commercial and Financial processes
   support continued active demand
   forecasting through regular weekly
   reviews, a transparent Open to Buy
   process, a stock policy that increases
   cover for important and

   volatile lines and a currency hedge
   policy that smooths out variability.

    

   • Our sourcing capability and supplier    • Development of a replacement
   relationships are delivered through       Warehouse Management System.
   dedicated UK, Asian and Near sourcing
   teams. These teams maintain both           
   strategic and upstream supplier
   relationships, operate multiple sources,  • Development of an enhanced
   dual sourcing, product engineering and    Customs and Duty
   are engaged in the ESG agenda.
                                             platform.
    
                                              
   • Our in-house expertise delivers the
   high global trading standards from        • Investment in a more senior
   Authorised Economic Operator              dedicated Customs and Trade
   accreditation, import/export expertise    compliance team to reduce the
                                             risks associated with
   and dedicated security at each of our DC  international sourcing activity.
   sites.
                                              
    
                                             • Investment in additional
   • Our 3PL relationships give expertise    storage space in a fifth DC to
   and options. We contract with multiple    hold overstocks and protect
   shipping lines for flexibility and        availability rather than cut
   leverage, we have access to large         intake too hard and damage both
   organisational support from Yusen         customer availability and
   Logistics, Wincanton and Clipper          supplier relationships.

   logistics and PwC provide external
   trading and compliance expertise.

    

   • Our transformation plans reduce risk
   through scheduled work on the replacement
   of our warehouse Management System, a UK
   distribution centre physical network
   review, the replacement of our
   Forecasting and replenishment tools and
   our Customs and Duty platform.

    

   • We have invested in a multi-sea freight
   carrier solution to balance costs and
   flexibility to move our direct import
   cargo in an unprecedented inflationary
   market.

    

    Directors’ responsibilities

   The directors are responsible for preparing the annual report and the
   financial statements in accordance with UK adopted international
   accounting standards and applicable law and regulations.

   Company law requires the directors to prepare financial statements for
   each financial year. Under that law the directors are required to prepare
   the group financial statements in accordance with UK adopted international
   accounting standards and have elected to prepare the company financial
   statements in accordance with United Kingdom Generally Accepted Accounting
   Practice (United Kingdom Accounting Standards and applicable laws). 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 company and of the profit or loss for the group
   for that period.

   In preparing these 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;

   • state whether they have been prepared in accordance with UK adopted
   international accounting standards, subject to any material departures
   disclosed and explained in the financial statements;

   • prepare the financial statements on the going concern basis unless it is
   inappropriate to presume that the group and the company will continue in
   business;

   • prepare a directors’ report, a strategic report and directors’
   remuneration report which comply with the requirements of the Companies
   Act 2006.

    

   The directors are responsible for keeping adequate accounting records that
   are sufficient to show and explain the company’s transactions and disclose
   with reasonable accuracy at any time the financial position of the company
   and enable them to ensure that the financial statements comply with the
   Companies Act 2006.

   They are also responsible for safeguarding the assets of the company and
   hence for taking reasonable steps for the prevention and detection of
   fraud and other irregularities. The Directors are responsible for ensuring
   that the annual report and accounts, taken as a whole, are fair, balanced,
   and understandable and provides the information necessary for shareholders
   to assess the group’s performance, business model and strategy.

   Website Publication

   The Directors are responsible for ensuring the Annual Report and the
   financial statements are made available on a website. Financial statements
   are published on the Company’s website in accordance with legislation in
   the United Kingdom governing the preparation and dissemination of
   financial statements, which may vary from legislation in other
   jurisdictions. The maintenance and integrity of the company’s website is
   the responsibility of the directors. The directors’ responsibility also
   extends to the ongoing integrity of the financial statements contained
   therein.

    

   Directors’ Responsibilities Pursuant to DTR

    The directors confirm to the best of their knowledge:

   • The financial statements have been prepared in accordance with the
   applicable set of accounting standards, give a true and fair view of the
   assets, liabilities, financial position and profit and loss of the group.

   • The annual report includes a fair review of the development and
   performance of the business and the financial position of the group and
   company, together with a description of the principal risks and
   uncertainties that they face.

    

   Approved by order of the Board.

   Keith Williams

   Chair

   15 June 2022

    

   ══════════════════════════════════════════════════════════════════════════

   ISIN:           GB00B012TP20
   Category Code:  ACS
   TIDM:           HFD
   LEI Code:       54930086FKBWWJIOBI79
   OAM Categories: 1.1. Annual financial and audit reports
   Sequence No.:   177576
   EQS News ID:    1407567


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

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