Halfords reports profit rise and £300m funding
Redditch-headquartered Halfords has reported a "period of considerable progress" after its half-year figures showed a rise in profit before tax to £68.7m for the 26 weeks to 1 October 2010. The equivalent 2009 figure was £60.9m. Revenue also increased £456.3m - it was £425.1m in 2009.
Yorkshire Bank in Birmingham and four other banks have also agreed a £300m finance package with Halfords to replace existing credit facilities and provide funding for its working capital requirements and development of the business.
Yorkshire Bank has provided £50m as part of a ‘banking club’ that also includes RBS, Handelsbanken, Barclays and Bank of Ireland.
David Wild, Halfords chief executive, said: "This has been a period of considerable progress for the group.
"In addition to increasing profits, we have successfully completed a number of significant change initiatives.
"These include the reconfiguration of the group's warehouse and distribution network, the remodelling of staffing structures and the closure of our Central European operations.
"In total these reduce costs, enhance customer service and provide a strong platform for our next phase of growth that will be clearly focused in the UK. We are also pleased to have concluded the refinancing of the group's debt arrangements on favourable terms."
Wild said Halfords Autocentres business had made "good progress" with 15 new centres to be opened soon. The network is also to be re-branded "Halfords Autocentres" by the end of the financial year and a national advertising campaign will follow in the spring.
Wild added: "In the six weeks since the end of the half-year, trading conditions for retail have remained challenging with like-for-like sales at -5 per cent. Autocentres' performance has been encouraging resulting in like-for-like sales growth of 1.2 per cent. We would expect profits for the full financial year to be within the range of market expectations."
