REG-Halfords Group PLC Halfords Group PLC: Notice of Results and Update on trading and liquidity

HalfordsAnnouncement

06/05/2020 07:00

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

   Halfords Group PLC (HFD)
   Halfords Group PLC: Notice of Results and Update on trading and liquidity

   06-May-2020 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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

                                                                             

    6                    May                    2020                         
                                                                    

                                        

                              Halfords Group plc 

                          ("Halfords" or "The Group")

                                        

             Notice of Results and Update on trading and liquidity

    

   Halfords, the UK's leading provider  of motoring and cycling products  and
   services,  today  confirms  the  revised  date  for  publication  of   its
   preliminary results for the year to 3 April 2020 ("results") and  provides
   an update on recent trading and liquidity.

    

   Notice of Results

   Following guidance  from the  Financial Conduct  Authority (FCA)  and  the
   Financial Reporting Council (FRC) relating to the unprecedented challenges
   faced by companies and their  auditors in preparing financial  information
   and accounts during the COVID-19 pandemic, the Group now expects to report
   its results on 7 July 2020, instead of the previously announced date of  2
   June 2020.  The Group's  Annual General  Meeting will  now be  held on  15
   September 2020.

   Update on trading and liquidity

   As a provider of essential products and services to the UK public, we have
   remained open during  the lockdown  period. We currently  have 325  retail
   stores open on a dark-store basis, where serving customers from the  front
   of  the  store  ensures  our  colleagues  can  operate  in  safe   working
   conditions. We also have 346 garages open and 77 mobile vans operating. We
   have implemented additional  safety measures across  all sites to  protect
   both our colleagues and our customers.

    

   Our results for  FY20 were boosted  by better than  expected sales in  the
   final weeks of the financial year  during the lockdown period. Subject  to
   audit adjustments, we  now expect that  Adjusted Profit Before  Tax, on  a
   pre-IFRS16 and 52-week basis, will be  at the upper end of our  previously
   guided range of £50-55m.

    

   Group sales for the four weeks to 1 May 2020 were 23% below last year on a
   like-for-like basis, which was better than we initially anticipated.  This
   was fairly consistent across the period and reflected a strong performance
   in Cycling, as the  public explored alternatives  to public transport  and
   looked for ways to stay healthy. In Motoring, essential categories such as
   batteries and battery care performed well, but overall weakness  reflected
   a significant reduction in car journeys during the lockdown period.

    

   Better than expected trading and the  proactive measures we have taken  to
   preserve cash have resulted in  an improvement in our liquidity  position.
   On 1 May 2020,  we had approximately £159m  of total liquidity  available,
   including overdraft facilities. Despite this improvement, the severity and
   duration of the pandemic remain very uncertain and as such the Board  will
   continue to take  the actions  necessary to  preserve cash  in the  coming
   months and seek to position the Group  for an easing of lockdown. We  also
   remain in active dialogue with  our existing lending syndicate to  provide
   additional flexibility should we require it.

    

   Update on proposed closure of Cycle Republic

   On 16 March 2020 we announced a proposal to close the operations of  Cycle
   Republic and the Boardman Performance Centre ("Cycle Republic"), following
   a strategic  review  of the  Group's  cycling businesses.  We  have  since
   completed a transaction with Pure  Scooters Limited to transfer 11  stores
   and 85  colleagues. The  exceptional cost  of £25-35m  that we  previously
   announced is  not materially  impacted  by this  transaction.  Performance
   Cycling remains an important category for Halfords and we will continue to
   serve the mainstream and enthusiast cycling market through our  specialist
   online business, Tredz and the core Halfords Retail cycling business.

    

   Graham Stapleton, CEO said:

   "The health and safety of our colleagues and our customers remains our top
   priority. I am immensely proud of all our colleagues for their continued
   hard work and dedication to help keep the country moving.

    

   There may be less journeys now but those that are undertaken are even more
   important. As the UK's largest  provider of motoring and cycling  products
   and services,  we  take our  responsibility  to keep  the  country  moving
   seriously. We  remain  focused  on  providing  essential  services  during
   lockdown, supporting key workers, including serving over 21,000 NHS  front
   line workers so far, as well as  the wider population who need to  travel.
   Cycling has provided  commuters with  an important  alternative to  public
   transport and  consequently we  have seen  significant growth  within  our
   Cycle2Work  programme,  cementing  our  position  as  the   market-leading
   business in this segment.

    

   Whilst trading since our last update at the end of March has been better
   than anticipated, driven by a strong performance in cycling, considerable
   uncertainty remains and as such we continue to take all necessary measures
   to preserve cash and protect our financial position. I am confident the
   actions we are taking now will put the business in a strong position when
   we emerge from the crisis and enable us to continue to deliver on our
   strategic transformation in the medium term".

    

    

   Enquiries

   Investors & Analysts (Halfords) 

   Loraine Woodhouse, Chief Financial Officer  

   Neil Ferris, Corporate Finance
   Director                                                +44 (0) 7483
   360675                                                    

    

   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.boardmanbikes.com     
    3 www.tredz.co.uk                                                        
    4 www.cyclerepublic.com

    

   Halfords is the UK's leading provider of motoring and cycling services and
   products. Customers shop  at 446  Halfords stores,  4 Performance  Cycling
   stores (trading  as Tredz  and Giant),  371 garages  (trading as  Halfords
   Autocentres and McConechy's)  and have  access to 77  mobile service  vans
   (trading  as  Halfords  Mobile  Expert).   Customers  can  also  shop   at
   halfords.com, cyclerepublic.com and tredz.co.uk for pick up at their local
   store or direct home delivery, as  well as booking garage services  online
   at halfords.com.

    

   Cautionary Statement

    

   This report contains  certain forward-looking statements  with respect  to
   the financial condition, results of operations, and businesses of Halfords
   Group plc.  These statements and  forecasts involve risk, uncertainty  and
   assumptions because they  relate to events  and depend upon  circumstances
   that will occur in the future.  There  are a number of factors that  could
   cause actual  results  or developments  to  differ materially  from  those
   expressed  or   implied  by   these  forward-looking   statements.   These
   forward-looking  statements  are  made  only  as  at  the  date  of   this
   announcement. Nothing in this announcement should be construed as a profit
   forecast.  Except as required by law, Halfords Group plc has no obligation
   to update the  forward-looking statements or  to correct any  inaccuracies
   therein.

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

   ISIN:           GB00B012TP20
   Category Code:  UPD
   TIDM:           HFD
   LEI Code:       54930086FKBWWJIOBI79
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   61923
   EQS News ID:    1036837


    
   End of Announcement EQS News Service

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

    5 fncls.ssp?fn=show_t_gif&application_id=1036837&application_name=news&site_id=reuters8

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=dc934a09a1192ec0a1dd5bc4c5b4e7f2&application_id=1036837&site_id=reuters8&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=a4639b0dc1388a3a55b92a77548868bb&application_id=1036837&site_id=reuters8&application_name=news
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=8d9c0d9b41eb2335e0a4ce386dba87e7&application_id=1036837&site_id=reuters8&application_name=news
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=d32c1437e04b39b974679c41f3533039&application_id=1036837&site_id=reuters8&application_name=news


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