REG - Halfords Group PLC - Preliminary Results: Financial Year 2017 <Origin Href="QuoteRef">HFD.L</Origin> - Part 2
25/05/2017 07:06
- Part 2: For the preceding part double click ID:nRSY1711Ga
operating lease obligation of £0.3m in FY17 related to rectification work
unique to one of the Group's retail stores, which was required to make good an
area of land upon which the store is located.
Net Finance Costs
The Net Finance Costs excluding acquisition related interest charge for the
year was £1.7m (FY16: £3.0m). The primary driver of the lower costs was £1.4m
income (FY16: £0.1m expense) in relation to points on foreign exchange forward
contracts.
Taxation
The taxation charge on profit for the financial year was £15.0m (FY16:
£16.3m), including a £0.9m credit (FY16: £0.3m credit) in respect of
non-recurring items. The effective tax rate on profit before tax and
non-recurring items of 21.0% (FY16: 20.5%) was higher than the UK corporation
tax rate (20.0%) principally due to the effect of non-deductible depreciation
and amortisation charged on capital expenditure. For FY18 we anticipate the
effective tax rate to be circa 20%.
Earnings Per Share ("EPS")
Underlying Basic EPS was 30.3 pence and after non-recurring items 28.7 pence
(FY16: 33.2 pence, 32.5 pence after non-recurring), an 8.7% and 11.7% decrease
on the prior year. Basic weighted-average shares in issue during the year were
196.6m (FY16: 195.2m).
Dividend
The Board has recommended a final dividend of 11.68 pence per share ("DPS")
(FY16: 11.34 pence), taking the full year ordinary dividend to 17.51 pence per
share, an increase of 3.0%. If approved the final dividend will be paid on 25
August 2017 to shareholders on the register at the close of business on 4
August 2017. Including the 10.0 pence special dividend paid in February 2017
the total full year dividend is 27.51 pence.
We continue to target coverage of around 2 times on average over time.
However, the impact of adverse FX movements will reduce cover initially until
fully mitigated, which will take some time.
Capital Expenditure
Capital investment in the year totalled £36.1m (FY16: £40.3m) comprising
£29.5m in Retail and £6.6m in Autocentres. This total includes £1.8m of assets
capitalised through the acquisition of Tredz & Wheelies in May 2016.
Within Retail, £11.5m (FY16: £13.4m) was invested in stores, including 17
store refreshes, 9 of which were also store relocations or right-sizes, 5 new
Cycle Republic stores as well as general capital spend relating to training
rooms, roofing, flooring and heating. By the end of FY17, 114 (FY16: 87)
stores were trading in either the latest or preceding refresh format.
Additional investments in Retail infrastructure included a £12.5m investment
in IT systems, such as continual development of the online Retail proposition,
the 'Dayforce' integrated people management solution, development of the
'iServe' till hardware and software project, and a Cycle Republic website.
The £6.6m (FY16: £8.2m) investment in Autocentres comprised the opening of 5
centres in the year (FY16: 11) along with an investment in refreshing centres
and new equipment.
On a cash basis, total capital expenditure in the year was £34.4m (FY16:
£38.5m).
In FY18 we anticipate capital expenditure to be circa £40m, split broadly half
on store refreshes and half on IT investments. We anticipate the Group
depreciation and amortisation charge to be circa £33m for FY18.
Inventories
Group inventory held as at the year-end was £191.1m (FY16: £157.9m). Retail
inventory increased to £189.8m (FY16: £156.6m) comprising c.£14m from the
impact of foreign exchange, c.£13m stock build for Easter and new ranges (such
as e-bikes, launched in the final week of the year) and £5.9m Tredz & Wheelies
inventory. Autocentres' inventory was £1.3m (FY16: £1.4m).
Cashflow and Borrowings
Operating Cash Flow during the year was £90.0m (FY16: £103.7m). Free Cash Flow
of £37.7m (FY16: £45.4m) was generated in the year. Group Net Debt was £85.9m
(FY16: £47.9m), with the Net Debt to Underlying EBITDA ratio at 0.8:1.
Financial Targets
We continue to apply four key financial targets, which we reaffirm and
appraise ourselves against below:
# Description FY17 performance
1 Grow sales faster than the markets in which we operate. We continue to anticipate that the motoring market will grow at an average rate of 2-3% per annum and the cycling market at an average rate of 3-5% per annum over the medium term. We will aim to beat whatever those growth rates are. In Retail we gained share in both motoring and cycling. In Autocentres we gained share on a total sales basis, whilst the operational changes had a short-term impact on like-for-like performance.
2 Maintain Group EBITDA % margin roughly flat as we continue to invest for sustainable growth. The impact of adverse FX movements will reduce margin initially, until fully mitigated, which will take some time. Group EBITDA margin was 9.9% (FY16: 11.2%). Excluding the impact of adverse foreign exchange movements, EBITDA margin was broadly flat in FY17 compared to FY16.
3 Grow the dividend per share every year, with coverage of around 2 times on average over time. The impact of adverse FX movements will reduce cover initially, until fully mitigated, which will take some time. The Board has proposed a final dividend of 11.68p, which would take the full year dividend to 17.51p, an increase of 3.0% on the previous year.
4 A debt target of 1.0x Underlying EBITDA with a range of up to 1.5x to allow for appropriate M&A. We anticipate moving towards the debt target over time. We have moved from 0.4x to 0.8x net debt to Underlying EBITDA in FY17 through the consistent application of our capital allocation priorities which resulted in M&A of circa £22m and a special dividend of circa £20m.
Brexit
The decision of the UK to leave the European Union ("Brexit") presents
significant uncertainties to the Group as a result of the impact on the wider
UK economy. The main areas in which Brexit is likely to impact the Group are
as follows:
1) Impact on foreign currency exchange rates - the value of Sterling fell by
nearly 20% since FY16. The Group buys a significant proportion of its goods in
US Dollars; between $250m and $300m a year. At a spot rate of £1:$1.25 the
total FX headwind pre mitigation is nearly £50m of annual cost inflation
compared to the FY16 average rate flowing through cost of sales of $1.60. Our
hedging programme means that this phases into our P&L roughly as follows:
circa £14m in FY17, a further circa £25m in FY18 and a further circa £10m in
FY19. Good progress is being made on FX mitigation, through supplier
negotiations, operational efficiencies and pricing. We are seeing prices rise
in the cycling market, both from suppliers into retailers and then onto
customers. Some of our prices have also risen, but we continue to look to
maintain good value against the competition. It is early days and we are yet
to see how wider cost inflation impacts on consumer spending more generally,
however we are encouraged by the limited volume impact observed to date. We
continue to anticipate that we will fully recover the FX impact over time.
2) Prolonged uncertainty over exit terms and continued weakness in Sterling
could lead to a slowdown in the UK economy, and consequent loss of consumer
confidence, impacting trading conditions for the Group. However, Halfords has
strong positions in fragmented Motoring and Cycling markets, and a service-led
offer that differentiates us from our competitors, physical and online. Much
of our sales are in needs-based categories that are more resilient to
macro-economic cycles and our discretionary categories, such as cycling,
camping and travel solutions, could benefit from an increase in the number of
people choosing to stay at home rather than holidaying abroad; a trend that we
observed in 2009.
Principal Risks and Uncertainties
The Board considers risk assessment, identification of mitigating actions and
internal control to be fundamental to achieving Halfords' strategic corporate
objectives. In the Annual Report & Accounts the Board sets out what it
considers to be the principal commercial and financial risks to achieving the
Group's objectives. The main areas of potential risk and uncertainty in the
balance of the financial year are described on pages 42 to 47 and note 21 of
the Annual Report and Accounts. These include:
· Economic risks; including market risks
· Business strategy risks
· Competitive risks
· Compliance
· Supply chain disruption
· Product and service quality
· Information technology systems and infrastructure
· Dependence on key management personnel
Specific risks associated with performance include Christmas trading as well
as weather-sensitive sales, particularly within the Car Maintenance and
Cycling categories in the Retail business.
Jonny Mason
Chief Financial Officer, 24 May 2017
Halfords Group plc's LEI code is 54930086FKBWWJIOB179
CONSOLIDATED INCOME STATEMENT
For the period 52 weeks to 31 March 2017 52 weeks to 1 April 2016
BeforeNon-recurring items Non-recurring items(note 4) Total BeforeNon-recurring items Non-recurring items(note 4) Total
Notes £m £m £m £m £m £m
Revenue 1,095.0 - 1,095.0 1,021.5 - 1,021.5
Cost of sales (536.4) - (536.4) (478.4) - (478.4)
Gross profit 558.6 - 558.6 543.1 - 543.1
Operating expenses 2 (481.5) (3.4) (484.9) (458.6) (1.7) (460.3)
Results from operating activities 3 77.1 (3.4) 73.7 84.5 (1.7) 82.8
Finance costs 5 (3.2) (0.6) (3.8) (3.1) - (3.1)
Finance income 5 1.5 - 1.5 0.1 - 0.1
Net finance expense (1.7) (0.6) (2.3) (3.0) - (3.0)
Profit before income tax 75.4 (4.0) 71.4 81.5 (1.7) 79.8
Income tax expense 6 (15.9) 0.9 (15.0) (16.6) 0.3 (16.3)
Profit for the financial period attributable to equity shareholders 59.5 (3.1) 56.4 64.9 (1.4) 63.5
Earnings per share
Basic 8 30.3p 28.7p 33.2p 32.5p
Diluted 8 30.2p 28.6p 33.0p 32.4p
All results relate to continuing operations of the Group.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
52 weeks to 52 weeks to
31 March 2017 1 April 2016
Notes £m £m
Profit for the period 56.4 63.5
Other comprehensive income
Cash flow hedges:
Fair value changes in the period 14.8 4.7
Transfers to inventory (12.8) (2.9)
Transfers to net profit:
Cost of sales (5.1) (0.6)
Income tax on other comprehensive income 6 0.5 0.4
Other comprehensive income for the period, net of income tax (2.6) 1.6
Total comprehensive income for the period attributable to equity shareholders 53.8 65.1
All items within the Consolidated Statement of Comprehensive Income are
classified as items that are or may be recycled to the income statement.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March2017 1 April2016
£m £m
Assets
Non-current assets
Intangible assets 394.1 362.9
Property, plant and equipment 102.8 107.3
Investments 8.1 -
Total non-current assets 505.0 470.2
Current assets
Inventories 191.1 157.9
Trade and other receivables 58.4 60.7
Derivative financial instruments 5.2 4.2
Cash and cash equivalents 16.5 11.9
Total current assets 271.2 234.7
Total assets 776.2 704.9
Liabilities
Current liabilities
Borrowings (19.8) (23.4)
Derivative financial instruments (1.5) -
Trade and other payables (206.2) (182.5)
Current tax liabilities (8.7) (7.5)
Provisions (11.0) (9.5)
Total current liabilities (247.2) (222.9)
Net current assets 24.0 11.8
Non-current liabilities
Borrowings (82.6) (36.4)
Accruals and deferred income - lease incentives (31.9) (32.3)
Deferred tax liability (0.8) -
Provisions (6.2) (7.9)
Total non-current liabilities (121.5) (76.6)
Total liabilities (368.7) (299.5)
Net assets 407.5 405.4
Shareholders' equity
Share capital 2.0 2.0
Share premium 151.0 151.0
Investment in own shares (9.5) (10.9)
Other reserves 0.6 3.2
Retained earnings 263.4 260.1
Total equity attributable to equity holders of the Company 407.5 405.4
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to the equity holders of the Company
Other reserves
Share Investment Capital
Sharecapital premiumaccount in ownshares redemption reserve Hedgingreserve Retainedearnings Total equity
£m £m £m £m £m £m £m
Balance at 3 April 2015 2.0 151.0 (13.6) 0.3 1.3 226.7 367.7
Total comprehensive income for the period
Profit for the period - - - - - 63.5 63.5
Other comprehensive income
Cash flow hedges:
Fair value changes in the period - - - - 4.7 - 4.7
Transfers to inventory - - - - (2.9) - (2.9)
Transfers to net profit:
Cost of sales - - - - (0.6) - (0.6)
Income tax on other comprehensive income - - - - 0.4 - 0.4
Total other comprehensive income for the period net of tax - - - - 1.6 - 1.6
Total comprehensive income for the period - - - - 1.6 63.5 65.1
Transactions with owners
Share options exercised - - 2.7 - - - 2.7
Share-based payment transactions - - - - - 3.0 3.0
Income tax on share-based payment transactions - - - - - (0.7) (0.7)
Dividends to equity holders - - - - - (32.4) (32.4)
Total transactions with owners - - 2.7 - - (30.1) (27.4)
Balance at 1 April 2016 2.0 151.0 (10.9) 0.3 2.9 260.1 405.4
Total comprehensive income for the period
Profit for the period - - - - - 56.4 56.4
Other comprehensive income
Cash flow hedges:
Fair value changes in the period - - - - 14.8 - 14.8
Transfers to inventory - - - - (12.8) - (12.8)
Transfers to net profit:
Cost of sales - - - - (5.1) - (5.1)
Income tax on other comprehensive income - - - - 0.5 - 0.5
Total other comprehensive income for the period net of tax - - - - (2.6) - (2.6)
Total comprehensive income for the period - - - - (2.6) 56.4 53.8
Transactions with owners
Share options exercised - - 1.4 - - - 1.4
Share-based payment transactions - - - - - 1.0 1.0
Income tax on share-based payment transactions - - - - - (0.6) (0.6)
Dividends to equity holders - - - - - (53.5) (53.5)
Total transactions with owners - - 1.4 - - (53.1) (51.7)
Balance at 31 March 2017 2.0 151.0 (9.5) 0.3 0.3 263.4 407.5
CONSOLIDATED STATEMENT OF CASH FLOWS
52 weeks to 52 weeks to
31 March2017 1 April 2016
Notes £m £m
Cash flows from operating activities
Profit after tax for the period, before non-recurring items 59.5 64.9
Non-recurring items (3.1) (1.4)
Profit after tax for the period 56.4 63.5
Depreciation - property, plant and equipment 21.6 23.8
Impairment charge - -
Amortisation - intangible assets 10.0 6.3
Net finance costs 2.3 3.0
Loss on disposal of property, plant and equipment 0.2 0.4
Equity-settled share-based payment transactions 1.0 3.0
Fair value gain on derivative financial instruments (1.8) (0.4)
Income tax expense 15.0 16.3
(Increase) in inventories (33.2) (8.6)
Decrease/(Increase) in trade and other receivables 2.3 (4.9)
Increase in trade and other payables 14.6 2.3
(Decrease) in provisions (0.2) (1.4)
Finance income received 1.5 0.1
Finance costs paid (2.3) (2.3)
Income tax paid (15.3) (17.2)
Net cash from operating activities 72.1 83.9
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired (18.0) -
Purchase of investment (4.1) -
Purchase of intangible assets (18.4) (12.5)
Purchase of property, plant and equipment (16.0) (26.0)
Net cash used in investing activities (56.5) (38.5)
Cash flows from financing activities
Net proceeds from exercise of share options 1.4 2.7
Proceeds from loans, net of transaction costs 297.0 219.0
Repayment of borrowings (251.0) (245.0)
Payment of finance lease liabilities (0.6) (0.6)
Dividends paid (53.5) (32.4)
Net cash used in financing activities (6.7) (56.3)
Net increase/(decrease) in cash and bank overdrafts 9 8.9 (10.9)
Cash and cash equivalents at the beginning of the period (10.8) 0.1
Cash and cash equivalents at the end of the period 9 (1.9) (10.8)
Cash and cash equivalents at the period end consist of £16.5m (2016: £11.9m)
of liquid assets and £18.4m (2016: £22.7m) of bank overdrafts.
NOTES TO THE FINANCIAL STATEMENTS
1. General information and basis of preparation
The financial information, which comprises the consolidated income statement,
consolidated statement of comprehensive income, consolidated statement of
financial position, consolidated statement of changes in equity, consolidated
statement of cash flows and related notes, does not constitute full accounts
within the meaning of s435 (1) and (2) of the Companies Act 2006. The auditor
has reported on the Group's statutory accounts for each of the years FY16 and
FY17, which did not contain any statement under s498 of the Companies Act 2006
and are unqualified. The statutory accounts for FY16 have been delivered to
the Registrar of Companies and the statutory accounts for FY17 will be filed
with the Registrar in due course.
The consolidated financial statements of Halfords Group plc and its subsidiary
undertakings, together "the Group") have been prepared in accordance with
International Financial Reporting Standards ("IFRSs") and IFRS Interpretations
Committee ("IFRS IC") Interpretations as adopted by the European Union and
with those parts of the Companies Act 2006 applicable to companies reporting
under IFRS. The financial statements are prepared on a going concern basis and
under the historical cost convention, except where adopted IFRSs require an
alternative treatment. The principal variations relate to financial
instruments (IAS 39 "Financial instruments: recognition and measurement") and
share based payments (IFRS 2 "Share-based payment").
The financial statements are presented in millions of UK pounds, rounded to
the nearest £0.1m.
The accounts of the Group are prepared for the period up to the Friday closest
to 31 March each year. Consequently, the financial statements for the current
period cover the 52 weeks to 31 March 2017, whilst the comparative period
covered the 52 weeks to 1 April 2016.
2. Operating expenses
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Selling and distribution costs 401.5 385.7
401.5 385.7
Administrative expenses, before non-recurring items 80.0 72.9
Non-recurring administrative expenses 3.4 1.7
83.4 74.6
484.9 460.3
3. Operating profit
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Operating profit is arrived at after charging/(crediting) the following expenses/(incomes) as categorised by nature:
Operating lease rentals:
- plant and machinery 2.0 2.8
- property rents 91.7 89.6
- rentals receivable under operating leases (3.8) (3.5)
Landlord surrender premiums (1.9) (2.7)
Loss on disposal of property, plant and equipment 0.2 0.4
Amortisation of intangible assets 10.0 6.3
Depreciation of:
- owned property, plant and equipment 20.8 23.0
- assets held under finance leases 0.8 0.8
Trade receivables impairment 0.1 0.2
Staff costs 219.7 206.4
Cost of inventories consumed in cost of sales 524.7 472.8
4. Non-recurring items
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Non-recurring operating expenses:
Acquisition and investment related fees (a) 1.7 -
Organisational Restructure Costs (b) 0.6 1.7
Operating lease obligation (c) 0.3 -
Costs in relation to a historic legal case (d) 0.8 -
Non-recurring operating expenditure 3.4 1.7
Acquisition related interest charge (e) 0.6 -
Non-recurring items before tax 4.0 1.7
Tax on non-recurring items (f) (0.9) (0.3)
Non-recurring items after tax 3.1 1.4
(a) Acquisition costs relate to the costs associated with purchase of the
share capital of Tredz Limited and Wheelies Direct Limited during the period,
and the investment in Tyres on the Drive
(b) Organisational restructuring was undertaken across Autocentres and
Retail during the current and prior years, to better align resource to the
requirements of the business. This resulted in a non-recurring redundancy
expense of £0.6m (2016: £1.7m).
(c) The operating lease obligation relates to rectification work unique to
one of the Group's retail stores, which was required to make good an area of
land upon which the store is located.
(d) During the year the Group settled a court case which related to
activities during FY12.
(e) The acquisition related interest charge reflects the unwinding of the
discounting applied to the contingent consideration due on the acquisition of
Tredz Limited.
(f) The tax credit of £0.9m represents a tax rate of 20% applied to
non-recurring items. The prior period represents a tax credit at 20% applied
to non-recurring items.
5. Finance income and costs
Recognised in profit or loss for the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Finance costs:
Bank borrowings (1.1) (0.9)
Amortisation of issue costs on loans (0.7) (0.7)
Commitment and guarantee fees (0.6) (0.6)
Costs of forward foreign exchange contracts - (0.1)
Acquisition related interest charges (0.6) -
Interest payable on finance leases (0.8) (0.8)
Finance costs (3.8) (3.1)
Finance income:
Bank and similar interest 0.1 0.1
Income from forward foreign exchange contracts 1.4 -
Finance income 1.5 0.1
Net finance costs (2.3) (3.0)
6. Taxation
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Current taxation
UK corporation tax charge for the period 16.1 13.1
Adjustment in respect of prior periods (0.3) -
15.8 13.1
Deferred taxation
Origination and reversal of temporary differences (0.4) 3.1
Adjustment in respect of prior periods (0.4) 0.1
(0.8) 3.2
Total tax charge for the period 15.0 16.3
The tax charge is reconciled with the standard rate of UK corporation tax as
follows:
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Profit before tax 71.4 79.8
UK corporation tax at standard rate of 20% (2016: 20%) 14.3 16.0
Factors affecting the charge for the period:
Depreciation on expenditure not eligible for tax relief 1.7 1.1
Employee share options - (0.4)
Other disallowable expenses 0.3 (0.3)
Adjustment in respect of prior periods (0.7) 0.1
Impact of overseas tax rates (0.4) (0.4)
Impact of change in tax rate on deferred tax balance (0.2) 0.2
Total tax charge for the period 15.0 16.3
The UK corporation tax rate reduced from 21% to 20% (effective 1 April 2015)
and will be further reduced to 19% (effective from 1 April 2017) and 17%
(effective from 1 April 2020) following changes substantively enacted on 26
October 2015. This will reduce the Company's future current tax charge
accordingly. The deferred tax liability at 31 March 2017 has been calculated
based on the rate of 17% substantively enacted at the balance sheet date.
In the Chancellor's March 2016 budget he announced plans to further reduce the
corporation tax rate to 17% from 1 April 2020; however, during this financial
period, the UK corporation tax rate was 20% (2016: 20%).
The effective tax rate of 21.0% (2016: 20.5%) is higher than the UK
corporation tax rate principally due to the non-deductibility of depreciation
charged on capital expenditure and non-deductible amortisation of intangible
assets.
The tax charge for the period was £15.0m (2016: £16.3m), including a £0.9m
credit (2016: £0.3m credit) in respect of tax on non-recurring items.
An income tax credit of £0.5m (2016: £0.4m credit) on other comprehensive
income relates to the movement in fair valuing forward currency contracts
outstanding at the year end. No other items within other comprehensive income
have a tax impact.
In addition to the above, a £0.6m current tax credit (2016: £0.7m credit) and
a £0.6m deferred tax credit (2016: £1.4m debit) is recognised in reserves in
relation to employee share options.
The Group engages openly and proactively with tax authorities both in the UK
and internationally, where it trades and sources products, and is considered
low risk by HM Revenue & Customs ("HMRC"). The Company is fully committed to
complying with all of its tax payment and reporting obligations.
In this period, the Group's contribution to the UK Exchequer from both taxes
paid and collected exceeded £160m (2016: £150m) with the main taxes including
corporation tax £15.3m (2016: £17.2m), net VAT £59.0m (2016: £50.2m),
Employment taxes of £48.3m (2016: £45.3m) and business rates £37.3m (2016:
£36.9m).
7. Dividends
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Equity - ordinary shares
Final for the 52 weeks to 1 April 2016 -paid 11.34pper share (2016: 11.00p) 22.3 21.4
Interim for the 52 weeks to 31 March 2017- paid 5.83pper share(2016: 5.66p) 11.5 11.0
Special dividend - paid 10.0 per share (2016: nil) 19.7 -
53.5 32.4
In addition, the Directors are proposing a final dividend in respect of the
financial period ended 31 March 2017 of 11.68p per share (2016: 11.34p per
share), which will absorb an estimated £22.9m (2016: £22.3m) of shareholders'
funds. It will be paid on 25 August 2017 to shareholders who are on the
register of members on 4 August 2017.
8. Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares in
issue during the period. The weighted average number of shares excludes
shares held by an Employee Benefit Trust and has been adjusted for the
issue/purchase of shares during the period.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. These represent share options granted to employees where the exercise
price is less than the average market price of the Company's ordinary shares
during the 52 weeks to 31 March 2017.
The Group has also chosen to present an alternative earnings per share
measure, underlying earnings per share, with profit adjusted for non-recurring
items because it better reflects the Group's underlying performance.
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
Number of shares Number of shares
m m
Weighted average number of shares in issue 199.1 199.1
Less: shares held by the Employee Benefit Trust (weighted average) (2.5) (3.9)
Weighted average number of shares for calculating basic earnings per share 196.6 195.2
Weighted average number of dilutive shares 0.5 1.1
Total number of shares for calculating diluted earnings per share 197.1 196.3
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
£m £m
Basic earnings attributable to equity shareholders 56.4 63.5
Non-recurring items (see note 4):
Operating expenses 3.4 1.7
Finance costs 0.6 -
Tax on non-recurring items (0.9) (0.3)
Underlying earnings before non-recurring items 59.5 64.9
Earnings per share is calculated as follows:
For the period 52 weeks to 52 weeks to
31 March 2017 1 April 2016
Basic earnings per ordinary share
- More to follow, for following part double click ID:nRSY1711GcRecent news on Halfords
See all newsREG-Halfords Group PLC Halfords Group PLC: Director/PDMR Shareholding
AnnouncementREG-Halfords Group PLC Halfords Group PLC: Total Voting Rights
AnnouncementREG-Halfords Group PLC Halfords Group PLC: Total Voting Rights
AnnouncementREG-Halfords Group PLC Halfords Group PLC: Total Voting Rights
AnnouncementREG-Halfords Group PLC Halfords Group PLC: Director/PDMR Shareholding
Announcement