Halfords plans growth after revenue climb
Halfords has secured an overall rise in revenue of 4.6 per cent despite a drop of more than 5 per cent in its retail division. The Redditch-based company revealed its revenue had been boosted to £869.7m in its year-end results this morning.
Chief executive David Wild praised the company's performance in what he called a "challenging" trading environment, and said it would now forge ahead with growth plans.
Alongside a rise in revenue, underlying operating profit also increased 7 per cent to £128.1m for the year ending 1 April. Underlying pre-tax profit was similarly boosted 7.2 per cent to £125.6m.
Net debt was reduced by more than 33 per cent over the 12-month period to £103.2m.
The company said it had experienced "significant" growth in its trading website Halfords.com, which now accounts for 9 per cent of all retail sales.
However, the company's retail division took a hit and revenue was down 5.2 per cent at the year end. The company's chairman, Dennis Millard, said the result "reflected a tough trading environment".
The acquisition of Nationwide Autocentres was concluded in March 2011 and has experienced an "encouraging" revenue boost, said the company. Another 30 Nationwide Autocentres sites are planned for opening in the next financial year.
David Wild, chief executive, said: "This has been a challenging year for customers. Nonetheless we have increased profits through a clear focus on costs and margins.
"The group has also made significant operational progress through the successful completion of change initiatives, including reconfiguration of the group's warehouses and distribution network, remodelling staffing structures and the rebranding and relaunch of our Autocentres business.
"Although these initiatives were achieved at some impact on sales during the transition period, they have enhanced customer service, reduced costs and provide a strong platform for our next phase of growth.
"The strength of our cash generation and our balance sheet means that we can pay material dividends, return capital to our shareholders and retain flexibility."
