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Halfords power ahead with earnings for FY 2009-10 up 25% plans 200 new sites
Halfords Group Plc has reported a 25% earnings growth for the 52 weeks to April 2nd 2010, as pre-tax profit increased from £77.5 million to £109.7 million.
The firm, which on 17 February 2010 the Group acquired Nationwide Autocentres Holdings Ltd for £74.9 million cash has still reduced it's net debt from £173.9 million last year to £155.5 million now.
Halfords like for like sales have only increased by 0.7%, so this earnings growth is due to gross margins which have increased by 2.3% to 54.4% and Nationwide, which contributed £13.5m revenue and £0.3m to the Group's profit before tax for the period.
Halfords operate 462 stores in the UK and Ireland and 7 stores in Central Europe which are to be closed.
During the year, excluding the closure of bikehut stores, the Group increased its UK and ROI portfolio by four stores, having opened ten stores and closed six, mainly small format Metro stores. Halfords is moving to it's new 320,000sq ft national distribution centre at Coventry this month, and will remove from it's 3 existing warehouses by September.
Nationwide Autocentres, which operates from 224 sites in the UK was acquired during the year. Operational scale will significantly increase by opening 200 further centres in key towns over the next seven years.
David Wild, Chief Executive, said:
"Halfords has had an excellent year. As a result of our disciplined growth strategy and a clear focus on the needs of our customers, our business continues to develop strongly. Sales growth in core areas, margin expansion and disciplined cost control has led to the delivery of 25% earnings growth.
In addition we made our first acquisition, Nationwide Autocentres, which represents a natural extension of Halfords service proposition in the car aftermarket and is already making a good contribution to the Group.
Looking ahead we will continue to expand our core retail business, double earnings from the Autocentre operations over the next three years and harness our strong cash flow to seek further acquisitions that meet our investment criteria. The aim of this strategy is to deliver sustainable earnings growth over the medium term of, on average, 15% per annum.
While we remain cautious about the current state of the wider UK economy and immediate outlook for consumer spending, we have a proven strategy, a resilient business, and significant opportunities. The Board is therefore confident that the Group will deliver further earnings growth in the year ahead.
The Group's success reflects the continued hard work and contribution made by all colleagues. I would like to thank them for their continued efforts."
The firm, which on 17 February 2010 the Group acquired Nationwide Autocentres Holdings Ltd for £74.9 million cash has still reduced it's net debt from £173.9 million last year to £155.5 million now.
Halfords like for like sales have only increased by 0.7%, so this earnings growth is due to gross margins which have increased by 2.3% to 54.4% and Nationwide, which contributed £13.5m revenue and £0.3m to the Group's profit before tax for the period.
Halfords operate 462 stores in the UK and Ireland and 7 stores in Central Europe which are to be closed.
During the year, excluding the closure of bikehut stores, the Group increased its UK and ROI portfolio by four stores, having opened ten stores and closed six, mainly small format Metro stores. Halfords is moving to it's new 320,000sq ft national distribution centre at Coventry this month, and will remove from it's 3 existing warehouses by September.
Nationwide Autocentres, which operates from 224 sites in the UK was acquired during the year. Operational scale will significantly increase by opening 200 further centres in key towns over the next seven years.
David Wild, Chief Executive, said:
"Halfords has had an excellent year. As a result of our disciplined growth strategy and a clear focus on the needs of our customers, our business continues to develop strongly. Sales growth in core areas, margin expansion and disciplined cost control has led to the delivery of 25% earnings growth.
In addition we made our first acquisition, Nationwide Autocentres, which represents a natural extension of Halfords service proposition in the car aftermarket and is already making a good contribution to the Group.
Looking ahead we will continue to expand our core retail business, double earnings from the Autocentre operations over the next three years and harness our strong cash flow to seek further acquisitions that meet our investment criteria. The aim of this strategy is to deliver sustainable earnings growth over the medium term of, on average, 15% per annum.
While we remain cautious about the current state of the wider UK economy and immediate outlook for consumer spending, we have a proven strategy, a resilient business, and significant opportunities. The Board is therefore confident that the Group will deliver further earnings growth in the year ahead.
The Group's success reflects the continued hard work and contribution made by all colleagues. I would like to thank them for their continued efforts."
Thu, 10th Jun 2010