REG-Halfords Group PLC Halfords Group PLC: Trading Update

HalfordsAnnouncement

01/03/2021 07:05

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   Halfords Group PLC (HFD)
   Halfords Group PLC: Trading Update

   01-March-2021 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   1 March 2021

                       Halfords Group plc: Trading Update

    Full year profit before tax1 expected to be within a range of £90m-£100m
                    after the repayment of furlough support.

    

   Halfords Group plc ("the  Group"), the UK's  leading provider of  motoring
   and cycling products and services, today updates the market on its  recent
   trading performance.

   In our  Q3 trading  update on  14 January  2021, we  highlighted a  weaker
   like-for-like ("LFL") growth rate as we  exited the quarter. This was  due
   to regional  lockdowns  impacting  motoring  demand,  as  well  as  global
   container shortages and port disruption  delaying stock arriving into  the
   business. Although  we have  continued to  experience a  volatile  trading
   environment across the first seven weeks  of Q4, overall trading has  been
   stronger than we  initially anticipated  across the business,  and we  now
   expect full year  profit before  tax1 to  be within  the range  of £90m  -
   £100m. The  Board  has taken  the  decision to  repay  in full  £10.7m  of
   furlough income received, and the profit range is after this repayment.

   For the first seven weeks of Q4, from 2 January 2021 to 19 February  2021,
   Group LFL  growth was  +6.2%, with  Retail +5.1%  and Autocentres  +13.3%.
   Despite journeys  being c.40%  below pre-pandemic  levels, our  Autocentre
   business has continued to demonstrate signs of growing market share,  with
   strong demand  for both  our garage  business and  Halfords Mobile  Expert
   vans. In Retail, our Motoring business,  whilst being -14% LFL, has  again
   performed better than traffic levels would suggest, with sales of  blades,
   bulbs, batteries  and  general  maintenance  products  performing  better.
   Cycling has seen LFL growth rates improve as supply disruption has  eased,
   although overall supply remains sub-optimal.  Cycling LFL over the  period
   was +43%, with our unique and exclusive range of kids and adult mechanical
   bikes performing well, along with our performance cycling business, Tredz,
   which continues to see exceptional growth, up +60% LFL in the period.

   Although only six weeks remain of FY21, the expected profit range  remains
   quite broad as trading patterns continue to be volatile, with sales  ahead
   of Easter  particularly difficult  to  predict whilst  the UK  remains  in
   lockdown. As  the country  starts to  open up  once more,  our  overriding
   priority remains the health and safety of our colleagues and customers.

   Our  next  planned  trading  update   will  be  our  Preliminary   results
   announcement on 17 June 2021.

    1. Underlying profit before tax and before adjustments for IFRS16

    

   Enquiries                                   
   Investors & Analysts (Halfords)                                          
   Loraine Woodhouse, Chief Financial Officer                               
                                                        +44 (0) 7483 360 675
   Neil Ferris, Corporate Finance Director
                                                  neil.ferris@halfords.co.uk
                                                         +44 (0) 1527 513189
   Andy Lynch, Head of Investor Relations
                                                 andrew.lynch@halfords.co.uk
                                                                            
   Media (Powerscourt)                                  +44 (0) 20 7250 1446
   Rob Greening                               halfords@powerscourt-group.com
   Lisa Kavanagh                                                            

   Notes to Editors

   www.halfords.com                   1 www.halfordscompany.com              
    2 www.tredz.co.uk

    

   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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   ISIN:           GB00B012TP20
   Category Code:  TST
   TIDM:           HFD
   LEI Code:       54930086FKBWWJIOBI79
   OAM Categories: 2.2. Inside information
                   3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   94472
   EQS News ID:    1171791


    
   End of Announcement EQS News Service

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