Halfords Group PLC (HFD)
Halfords Group PLC: Interim Results: Financial Year 2024
29-Nov-2023 / 07:00 GMT/BST
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29 November 2023
Halfords Group plc
Interim Results: Financial Year 2024
Strong H1 performance driven by substantial revenue and profit growth through increased market share, optimisation of
our Autocentres business, and delivery of targeted cost savings.
Halfords Group plc ("Halfords" or the "Group"), the UK's leading provider of Motoring and Cycling services and
products, today announces its interim results for the 26 weeks to 29 September 2023 ("the period").
Group Financial Summary
FY24 FY23* FY24 vs
GBPm % Change
H1 H1 FY23
Revenue 873.5 767.1 106.4 13.9%
Retail 516.6 500.5 16.1 3.2%
Autocentres 356.9 266.6 90.3 33.9%
Gross Margin 47.8% 49.9% (210bps)
Retail 45.8% 49.1% (330bps)
Autocentres 50.6% 51.2% (60bps)
Underlying EBITDA 90.9 81.4 9.5 11.7%
Underlying Profit Before Tax ("PBT") 21.3 18.4 2.9 15.8%
Profit Before Tax 19.3 18.7 0.6 3.3%
Underlying Basic Earnings per Share 7.6p 6.7p 0.9p 13.4%
*H1 FY23 PBT restated to reflect adjustments relating to FX
accounting and Cost of Goods Sold. As a result PBT for H1 FY23 has
reduced by GBP10.6m from GBP29.3m to GBP18.7m, this has also
affected EPS as disclosed in note 20. For further detail see page
11 of Chief Financial Officer's report.
See page 20 for glossary of alternative performance
measures.
Overview
-- Strong revenue growth, up 13.9%, with like-for-like ('LFL')
sales growth of 8.3% achieved despitechallenging macro
environment.
-- Market share gains in all categories, ahead or in line with
expectations.
-- Varying performance across underlying markets:? Needs-based
categories, such as retail motoring and motoring services, in
strong growth and in linewith expectations. ? Discretionary markets
such as Cycling, challenging and below expectations due to well
documentedconsumer environment.
-- Continued strong growth of over 37% in B2B, now representing
nearly a third of Group revenue.
-- Autocentres delivering strong sales growth and profitability
(with total sales up 33.9%, LFL up 18.0% andEBIT of GBP10.9m, up
+GBP14.1m) as acquired businesses are optimised and garage
utilisation improves.
-- Gross margin % declined 210bps*, the majority of which is the
impact of weaker Sterling hedges versus theUS Dollar in Retail.
-- Significant cost-saving programme on track to deliver GBP30m
in the current year; savings being deliveredearlier than
expected.
-- Avayler (SaaS business): Landmark investment and 15-year
commercial contract entered into withBridgestone. **
-- Underlying Profit before tax (PBT) of GBP21.3m, up
15.8%*.
*H1 FY23 PBT restated to reflect adjustments relating to FX
accounting and Cost of Goods Sold. For further detail see page 11
of Chief Financial Officer's report.
**Commercial agreement with Bridgestone closed post the period
end, on 1 November 2023.
Current trading and Outlook
Our B2B businesses and needs-based categories are continuing to
show very strong growth. However, trading patterns have been
volatile across the first half of the year, and in the last couple
of months we have seen some market softening in our discretionary
big-ticket categories, which has been reflected in slower LFL sales
growth.
We continue to expect FY24 profit delivery to be second half
weighted as inflationary headwinds annualise, coupled with the
delivery of the balance of FY24 targeted cost and efficiency
savings of GBP30m. It does, however, remain challenging to predict
whether the recent trends in discretionary categories will
continue. Assuming trading conditions on average reflect what we
have seen in the year to date, we believe FY24 Underlying PBT will
now fall within a narrower range of GBP48m to GBP53m.
We continue to believe that our strategic investments provide a
strong platform for growth, validated by our market share gains in
this period. Looking beyond FY24, assuming markets recover in line
with projections, we remain confident in our mid-term target of
GBP90m-GBP110m Underlying PBT, as outlined at the Capital Markets
Day in April 2023.
Graham Stapleton, Chief Executive Officer:
"Despite the challenging and volatile trading environment and
slower than expected recovery in some of our markets, we have made
a good start to the year, with substantial sales and profit growth,
and increased market share across the business. At the same time,
we supported our customers through the ongoing cost of living
crisis by delivering great value - when they need it most.
In the face of continuing economic uncertainty, we remain fully
focused on optimising every element of the business, and I'm
particularly pleased with the very strong performance of
Autocentres, where we are delivering significantly improved
returns. In light of this, we are accelerating capital investment
in the garage services operating model and customer experience in
ten towns in the balance of this financial year.
It goes without saying that we simply could not deliver this
performance without the hard work and dedication of our fantastic
colleagues across the business. I am immensely grateful for their
continued support through these very challenging times."
Enquiries
Investors & Analysts (Halfords)
Jo Hartley, Chief Financial Officer
Andrew Smith, Interim Group Financial Controller
Louise Richardson, Interim Head of Investor Relations +44
(0)7483457415
Media (Powerscourt) +44 (0) 20 7250 1446
Rob Greening halfords@powerscourt-group.com
Nick Hayns
Elizabeth Kittle
Results presentation
A live webcast followed by a live Q&A call for analysts and
investors will be held today, starting at 09:00am UK time.
Attendance is by invitation only. A copy of the transcript of the
call will be available at www.halfordscompany.com in due course.
For further information please contact Powerscourt using the
details above.
Next trading statement
On 25 January 2024 we will report our Q3 Trading Update for the
period ending 29 December 2023.
Summary detail
Group revenue summary (fig.1)
Year on Year Growth
Total LFL
Halfords Group 13.9% 8.3%
Autocentres 33.9% 18.0%
Retail 3.2% 4.1%
Motoring 7.9% 8.2%
Cycling (3.1%) (2.8%)
Market Volume and Share (fig.2)
Consumer
Market Volume and Share Retail Motoring Cycling Motoring Servicing
Tyres
Market Volume
Growth forecast in FY241 +0.5% -1.0% +2.6% Broadly flat
Market Volume Movement Sept. H1 FY24 vs FY231 +0.9% -5.8% -0.2% +3.5%
Market Share (volume)
Share expectation in FY243 +0.6ppts +0.7ppts +0.2ppts +0.2ppts
Sept. share movement H1 FY24 vs FY232 +3.8ppts +1.8% +0.4ppts +0.2ppts
1Sources: Market Volume data: Retail Motoring, GFK; Cycling,
Bicycling Association; Consumer Tyres, GFK; Motor Servicing - MOT
data from DVSA: for 6 months to end September 2023. Growth forecast
provided by these third-party data providers.
2Sources: Market share data: Retail Motoring, GFK; Cycling,
Bicycling Association; Consumer Tyres, GFK; Motor Servicing - MOT
data from DVLA: for 6 months to end September 2023.
3 Halfords internal market share targets. Notes to Editors
www.halfords.com www.tredz.co.uk www.halfordscompany.com
Halfords is the UK's leading provider of motoring and cycling
services and products. Customers shop at 386 Halfords stores, 3
Performance Cycling stores (trading as Tredz and Giant), 645
garages (trading as Halfords Autocentres, McConechy's, Universal,
National Tyres and Lodge Tyre) and have access to 266 mobile
service vans (trading as Halfords Mobile Expert, Tyres on the Drive
and National) and 554 Commercial vans. Customers can also shop at
halfords.com and tredz.co.uk for pick up at their local store or
direct home delivery, as well as booking garage services online
also 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.
Chief Executive's Statement
The first half of FY24 has been a period of further strategic
progress and resilient financial performance, despite the ongoing
volatile economic backdrop. We continue to focus on what we can
control: growing our market share across all product categories in
the period; optimising our strategic investments in our more
resilient, needs-based, Service and B2B businesses; and delivering
cost and efficiency savings of GBP16.6m in the period. Our market
share performance demonstrates our ability to attract new customers
to Halfords, but we also continue to work hard to keep existing
customers within the Group, by deepening relationships through
greater value and understanding of their needs through our loyalty
club. Despite significant headwinds from inflation, unseasonal
weather conditions and slower than expected market growth, we have
delivered GBP21.3m Underlying profit before tax (PBT).
I am particularly proud of the progress we have made in the
following areas in the first half of the year: 1. Our strong sales
performance despite the slower than expected market growth in both
the Cycling and Tyremarkets: we have grown market share across all
categories and are ahead of our year-one strategic targets
inMotoring Retail, Cycling and Tyres, helping to drive Group total
sales growth of 13.9% and LFL revenue growth of+8.3%. New market
leading initiatives such as our 60-minute 'Click & Collect'
service for car parts and innovative'Buy now, pay later' financing
options support this strong performance, while our Motoring Loyalty
Club goes fromstrength to strength, now with almost 3m members. 2.
The strategic investment we have made in recent years is returning,
with our Autocentres businessdelivering an uplift in Underlying
EBIT of GBP14.1m in the first half to GBP10.9m, surpassing EBIT for
the whole ofFY23. Our focus on improving utilisation in our
garages, together with new initiatives such as dynamic pricing
onMOT and Tyre services, is delivering both incremental revenue and
higher returns. 3. Our strategically important Services business
continues to grow and now accounts for almost 50% ofrevenue, whilst
B2B accounts for 30%. Our enlarged Commercial Fleet Services
business has delivered significantgrowth in the period following
the acquisition of Lodge Tyre last year, winning new contracts and
deliveringrevenue and cost synergies ahead of expectations. 4.
Operationally we have delivered cost and efficiency savings of
GBP16.6m in the first half, faster than wehad previously
anticipated - and we are comfortably on track to deliver the target
of GBP30m for the full year. Wehave also made good progress in both
the retention and recruitment of colleagues within our Autocentres
business.Colleague turnover has improved every single month this
year and is currently at the lowest level for 19 months.
I am also delighted that Avayler, our SaaS business which helps
customers drive operational efficiency within their garages
services, has secured a significant 15-year commercial agreement
with Bridgestone, a leading global mobility company. The length and
scale of this contract is a significant endorsement for the Avayler
platform, with Bridgestone also making a strategic investment,
taking a 5% equity stake, as announced on 1 November, demonstrating
their confidence in the future growth prospects of Avayler. This
contract adds significant scale to our existing business and
underpins our growth projections as outlined at the Capital Markets
Day, earlier this year.
Our strategic transformation over the past few years has created
a more resilient, needs-based, consumer and B2B services-focused
business, with a greater emphasis on motoring, helping to deliver
our robust financial performance despite the headwinds described
above. The importance of this strategy is all the more clear given
the continuing volatile macro-economic conditions in both the UK
and global economies coupled with continuing low levels of consumer
confidence.
Group revenue
Our H1 revenue performance demonstrates our growing resilience,
delivering strong LFL and total revenue growth across the Group.
Group LFL revenues were up 8.3% year-on-year, despite challenging
markets, weak consumer confidence and unfavourable weather
conditions during the summer. We saw particularly strong
performances in our more resilient, needs-based categories and
Service and B2B businesses whilst consumers were less willing to
spend on more discretionary, higher ticket products. Pleasingly, we
have grown market share across all categories and are ahead of our
year-one targets, with the strongest performance in Motoring
products where we have grown market share by 3.8ppts year-on-year,
well ahead of our target.
Autocentres
Our Autocentres business performed very strongly over the
period, despite a weaker than anticipated Tyre market, with strong
like-for-like revenue growth of 18.0%. This has driven strong
growth in demand for both services (+12.3%) and tyres (+29.0%)
versus a market decline of 0.2ppts in the Tyre market.
In our consumer garages business, revenue growth has been driven
by a number of factors including: Our Motoring Loyalty Club, with
around 40% of our MOT work now coming from club members; attractive
promotional offers on leading tyre brands; and the launch of our
innovative 'Buy now pay later' finance option which provides
greater choice to the customer, enabling them to spread the cost of
maintaining their cars during the cost-of-living crisis. We also
continue to focus on improving utilisation rates in our garages,
delivering strong growth, up over 7% year-on-year in the last few
months, where we are optimising capacity across our garage
network.
On the commercial side, we have seen particularly strong growth
in our enlarged and market-leading Commercial Fleet Services
business which grew sales by over 150%, in part benefiting from the
acquisition of Lodge Tyre in October 2022. With near national
coverage, we are attracting new customers with nationwide
requirements who are able to access a network of 554 commercial
vans and 100 commercial garages.
Retail Motoring
Retail saw a resilient performance in Motoring, with LFL sales
up 8.2% year-on-year, against market growth of 0.9%. We saw strong
growth across needs-based categories including maintenance, parts,
bulbs, blades and batteries (3Bs), offset by lower demand for
discretionary categories.
We increased market share in our measured* categories with
overall share up 3.8ppts year-on-year, well ahead of our year-one
target of +0.6ppts. This performance was underpinned by strategic
price investment that has seen strong volume growth, partially
offsetting lower sales of more discretionary, higher ticket items
such as technology and touring.
*As measured by GFK volume share
Retail Cycling
Our Cycling business has also performed ahead of the market with
LFL sales down 2.8% versus a 5.8% decline in the market (well below
market assumption of -1.0%). Our volume market share grew +1.8ppts,
ahead of our year-one target of +0.7ppts.
Given the more discretionary nature of this category coupled
with the unfavourable weather conditions over the summer, Cycling
continues to underperform our other product categories. However,
our B2B Cycle2Work ('C2W') business has proven to be very
resilient, with sales up 15.0% year-on-year. This strong
performance is due in part to the development of our new B2B
platform that targets the SME market, increasing our B2B customer
participation and improving the overall performance of C2W. We have
also seen further growth in our customer base and grown market
share, and we remain the UK's largest Cycle to Work Provider.
Encouragingly, Tredz, our predominantly online, high-performance
cycling business, has delivered double digit LFL sales growth,
growing market share at a time of significant consolidation within
the Cycling market. During the period we have launched a new
website enhancing the customer experience and improving our online
conversion rate. It is also pleasing to see our strong customer
support and delivery experience recognised with a Trustpilot score
of 4.6, ahead of our main competitors, whilst brand awareness has
increased by 30% in H1.
Strategic review
Growing our Service and B2B businesses:
Avayler growth and investment stake
Our SaaS business "Avayler", has secured a landmark commercial
agreement with Bridgestone, to roll out Avayler software products
across their US operations - potentially over 2,000 garages. The
15-year commercial agreement adds significant scale to our existing
SaaS business in the US, growing the recurring revenue stream and
underpinning our business growth projections set out at our Capital
Markets Day in April 2023. Across their combined operations, our
three Avayler partners in the US operate from around 100,000
locations, whilst Mobivia operates from around 2,000 garages across
Europe.
In addition to this contract win, Avayler has also received a
significant endorsement for its software platform, with Bridgestone
taking a 5% equity stake for a USD3m (GBP2.5m) investment, as
announced on 1 November. This investment is prior to any annual
recurring revenue from Bridgestone and demonstrates the significant
growth potential for the platform.
With our fourth major contract secured, momentum is building and
we have a strong pipeline of further customer acquisition targets
in place.
Leveraging growth in our Commercial Fleet Services ('CFS')
business
In October 2022, we made a further strategic investment with the
acquisition of Lodge Tyre, both supporting our strategic priority
to grow Motoring and B2B services and complementing our existing
commercial fleet services business, establishing Halfords as the
UK's commercial tyre services market leader.
Our enlarged CFS business is generating positive interest from
fleet customers, with national coverage a major factor behind the
recent award of a 5-year contract with Yodel, who operate one of
the largest commercial vehicles fleets in the UK, with over 1,700
vehicles.
Together with our tyre manufacturer partners, we have a strong
pipeline of target fleet tyre service customers and are already
working with the likes of DHL, DPD, Evri and Kuehne & Nagel. We
also provide services for many local councils, with recent contract
wins including Dudley, Coventry, Liverpool and Cheshire West
councils, together with West Midlands Fire Service, Shropshire Fire
and Rescue and the Ministry of Defence.
We are continuing to leverage the integration of our combined
CFS business (Lodge, Universal and McConechy's), with revenue and
cost synergies running ahead of expectations.
Growing market share:
Motoring Loyalty Club
Our Halfords Motoring Loyalty Club, the first of its kind in the
UK, has now been running for over 18 months and we are delighted
with the performance to date. We comfortably exceeded our targets
for the first year of operation, and we have continued to see
further strong growth in the first half. Encouragingly, having
entered its second year, our Motoring Loyalty club is seeing
renewal rates on membership ahead of expectations.
We now have 2.9 million members (up 1.2 million year-to-date),
with over 200,000 of those being subscription members, representing
our highest mix of 'premium' members since launch. 40% of new
members this year are completely new to Halfords, demonstrating our
ability to attract new customers. Significantly, 81% of members
have not previously used Halfords for their MOTs while 72% have not
visited one of our garages for other servicing requirements, which
should support further growth in these areas in the second half of
this year and beyond.
As a result of the club, a growing proportion of our MOT work is
from club members, accounting for c.40% of Autocentre MOTs in H1,
with members cross shopping more than 5x the rate of
non-members.
This month we have also launched new capability within our
retail stores, enabling customers to sign up for the 'Premium'
subscription membership in-store at the till, where previously they
could only do so online. Already we are seeing a significant pick
up in the 'premium' mix, with store colleagues able to support
customers through the sign-up process.
We remain very excited about the opportunities that this
customer proposition brings us and see it as a key platform for
future growth, with further investment planned in the second half
of the year.
Growing our market leading extended car parts proposition
Earlier in the year we entered the GBP1billion wider specialist
car parts market, with the aim of providing customers with access
to thousands of car parts, with next day delivery to home or store.
We have further enhanced the customer proposition with the launch
of our 60-minute 'Click & Collect' service in July providing
both greater convenience and service for our customers, with the
service already available in over 70% of stores.
Alongside our innovative Motoring Loyalty Club, our extended
ranges are attracting new customers to Halfords, with 24% of car
parts customers new to our Retail business whilst Motoring Loyalty
Club members are accounting for 30% of revenue for car parts.
Operating review
H1 FY24 has proved to be yet another challenging operating
environment. With interest rates at a 15-year high and an ongoing
cost-of-living crisis, consumer confidence remains low, and this is
translating into slower than expected recovery in some of our
markets, particularly in the more discretionary high-ticket product
categories. As a business, we continue to concentrate our efforts
on what we can control, with a laser focus on costs whilst actively
managing inflationary headwinds. At the same time, we have also
invested in price to drive market share and implement dynamic
pricing in our services business.
Group gross margin % declined 210 bps* in H1 FY24, driven
primarily by the impact of weaker Sterling hedges versus the US
Dollar, product cost inflation in the Retail business and the
dilutive impact of lower margin tyres becoming a greater proportion
of revenue following the acquisition of Lodge Tyre in October 2022.
These impacts were partly mitigated in absolute terms by our
goods-for-resale better buying programme and targeted price
increases.
*H1 FY23 PBT restated to reflect adjustments relating to FX
accounting and an understatement of Cost of Goods Sold. For further
detail see page 11 of Chief Financial Officer's report.
Group operating costs have been well managed in the period,
rising by only 8.6% versus the 13.9% increase in Group revenue.
This performance largely reflects the successful delivery of our
cost and efficiency programme which is comfortably on track to
deliver GBP30m of savings in FY24, with GBP16.6m delivered in H1.
Highlights include: procurement savings through retendering of
contracts, renegotiating improved rates on freight and energy, the
benefit of better buying driving product cost reductions, and
property related savings through rental reductions on lease
renewals and store closures. These savings are helping to mitigate
the expected GBP30m of inflationary headwinds for FY24, with
GBP20.1m impacting H1. Looking ahead, we are reviewing further
structural opportunities to improve our Autocentres supply chain,
which could deliver additional efficiencies.
We are also focused on improving utilisation within our garage
businesses, making good progress in the first half. Notably, we
have seen the utilisation rate improve in every single month
year-to-date. The implementation of dynamic pricing is also driving
improvements, with online customers looking for value incentivised
to book services at garages where we have greater availability.
We are making good progress in terms of labour retention and
recruitment in our Autocentres business. We continue to recruit new
technicians and have recently launched new initiatives to support
colleagues through their induction period, which should result in
further improvements in retention over the second half of the year.
On the recruitment side, we have increased the recruiting resource,
enabling us to both speed up the recruitment process and increase
the number of job offers each week, and we are also working with
new agencies to ensure a strong pipeline of candidates. Looking
forward we are also planning to substantially expand our
Apprenticeship programme.
Capital structure and dividend
Our capital allocation priorities remain unchanged: 1.
Maintaining a prudent balance sheet 2. Investment for growth 3.
M&A, focused on Autocentres 4. Dividend covered by 1.5x-2.5x
Underlying profit after tax 5. Surplus cash returned to
shareholders
As noted below, we ended the period with net debt of GBP47.0m
(H1 FY23: Net Cash GBP32.3m) (pre IFRS 16 lease debt); with a Net
Debt: EBITDA ratio (post IFRS 16) of 2.0x (H1 FY23: 1.9x) which is
within our target range of 1.8x pre-M&A or 2.3x post.
As set out at our Capital Markets Day in April 2023, average
capital expenditure is expected to be in the range of GBP50-60m
p.a. in the mid-term, assuming no material acquisitions. This
represents approximately 3% of revenues. We expect FY24 capex to be
at the lower end of this range.
We understand the importance of the ordinary dividend to many of
our investors. We have declared an FY24 interim dividend of 3p
(2023: Interim dividend 3p) per share to be paid on 19 January 2024
with the corresponding ex-dividend date of 14 December 2023 and the
record date of 15 December 2023.
Summary
We've had a good first half of the year, delivering both strong
revenue and profit performance despite poor summer weather coupled
with both the Cycling and Tyre markets underperforming. We've seen
particularly strong performances in our more resilient, needs-based
categories and Service and B2B businesses whilst consumers were
less willing to spend on more discretionary, higher ticket
products.
We've continued to focus on what we can control: growing market
share; delivering cost and efficiency savings; and optimising our
strategic investments, with a significant uplift in both revenue
and profit in our Autocentres business.
Avayler has won a significant contract with Bridgestone, which
not only adds material scale to the Avayler platfom but also
represents a major endorsement for this business.
Whilst the market backdrop remains volatile and challenging to
predict, we are well positioned to take advantage when markets
recover, and I believe we have many exciting opportunities
ahead.
Graham Stapleton
Chief Executive Officer, Halfords Group plc
28 November 2023
Chief Financial Officer's Report
Halfords Group plc ("the Group" or "Group")
Reportable Segments
Halfords Group operates through two reportable business
segments:
-- Retail, operating in both the UK and Republic of Ireland;
and
-- Autocentres, operating primarily in the UK.
All references to Retail represent the consolidation of the
Halfords ("Halfords Retail") and Performance Cycling Limited
(together, "Tredz and Wheelies") trading entities. All references
to Autocentres represent the consolidation of the Halfords
Autocentres, McConechy's, The Universal Tyre Company (Deptford)
Limited ("Universal"), Axle Group Holdings Ltd ("National Tyre"),
Avayler Holdings Limited and LTC Trading Holdings ("Lodge Tyre")
trading entities. All references to Group represent the
consolidation of the Retail and Autocentres segments.
The "H1 FY24" reporting period represents trading for the 26
weeks to 29 September 2023 ("the period"). The comparative period
"H1 FY23" represents trading for the 26 weeks to 30 September 2022
("the prior period").
All numbers shown are on a post IFRS16 basis, unless otherwise
stated. Group Financial Results
H1 FY24 H1 FY23* Change
GBPm GBPm 24 vs 23
Group Revenue 873.5 767.1 13.9%
Group Gross Profit 417.3 382.5 9.1%
Gross Margin 47.8% 49.9% (210bps)
Group EBIT 27.6 23.8 16.0%
Underlying EBITDA 90.9 81.4 11.7%
Finance Costs (6.3) (5.4) 16.7%
Underlying Profit Before Tax 21.3 18.4 15.8%
Net non-underlying items (2.0) 0.3 N/A
Profit Before Tax 19.3 18.7 3.2%
Basic Earnings per Share, before non-underlying items 7.6p 6.7p 13.4%
*H1 FY23 results restated. See below
See page 20 for glossary of alternative performance
measures.
Prior Period Adjustments to PBT in H1 FY23
The results for the 26 weeks to 30 September 2022 have been
restated to reflect adjustments which decrease the stated profit
before tax by GBP10.6m and result in certain reclassifications
within the statement of financial position and statement of cash
flows. The adjustments have no cash impact.
A GBP5.4m charge has been reflected relating to the correction
of the accounting treatment of cash flow hedges under IFRS 9 and
the valuation of inventory under IAS 21 at the HY23 Balance sheet
date. As this adjustment fully reverses in the second half of FY23,
there is no impact on FY23 reported results.
A further GBP5.2m increase to cost of sales and the correction
to balances on the balance sheet has arisen from a) the correction
of accounting for a new tyre wholesale and distribution arrangement
and (b) the correction of errors identified in the goods received
not invoiced ("GRNI") reconciliation process at 30 September 2022.
This adjustment has no cash effect but impacts Inventories, Trade
and other receivables, and Trade and other payables within the
Statement of Financial Position. There was a smaller charge in
relation to this of GBP2.1m in the second half of FY23, and
therefore the impact on FY23 results was a reduction to profit
before tax of GBP7.3m.
We are confident these adjustments fully correct the results for
the 26 weeks to 30 September 2022 and that the appropriate process
and controls remediations have been put in place such that we do
not expect any further adjustments going forward. We also note that
these movements have no impact on our FY24 guidance or the mid-term
targeted growth projections, as set out at our Capital Markets Day
in April 2023.
The impact of the above adjustments on the FY23 interim results
are shown in the table below:
H1 FY23 H1 FY23
As originally reported Supplier arrangements Foreign exchange Restated
GBPm GBPm GBPm GBPm
Revenue 765.7 1.4 - 767.1
Retail 500.5 - - 500.5
Autocentres 265.2 1.4 - 266.6
Gross Profit 393.1 (5.2) (5.4) 382.5
Retail 251.3 - (5.4) 245.9
Autocentres 141.8 (5.2) - 136.6
Gross Margin 51.3% 49.9%
Retail 50.2% 49.1%
Autocentres 53.5% 51.2%
EBIT before non-underlying items 34.4 (5.2) (5.4) 23.8
Underlying Profit Before Tax 29.0 (5.2) (5.4) 18.4
Profit after tax 23.1 (4.2) (4.2) 14.7
Cash flow hedges:
Fair value changes in the period 9.0 - 1.1 10.1
Income tax on Other comprehensive income (0.9) - (0.2) (1.1)
Other comprehensive income 8.1 - 0.9 9.0
Total comprehensive income 31.2 (4.2) (3.3) 23.7
Group Financial Results
Group revenue in H1 FY24, at GBP873.5m, is up +13.9%
year-on-year, and up 8.3% on a LFL basis. This comprised Retail
revenue of GBP516.6m and Autocentres revenue of GBP356.9m. Group
gross profit at GBP417.3m (H1 FY23: GBP382.5m) represented 47.8% of
Group revenue (H1 FY23: 49.9%). The growth in gross profit of
GBP34.8m, +9.1%, was driven by Autocentres performance. This is a
result of strong growth in the LFL business and the acquisition of
Lodge, which completed in October 2022.
Gross margin % has decreased, -210bps vs FY23, with Retail
-330bps and Autocentres -60bps. The decline in Retail gross margin
primarily reflects foreign exchange headwinds in relation to the
weakening of Sterling hedges versus the US dollar, plus investment
in price within our Retail Motoring business. Autocentres has seen
gross margin decline in H1 as a result of the acquisition of Lodge
Tyre in October 2022 which has increased the mix of revenue towards
lower margin tyres.
Total operating costs before non-underlying items were 8.6%
higher than H1 FY23 at GBP389.7m of which Retail comprised
GBP217.3m (H1 FY23: GBP216.5m), Autocentres GBP169.5m (H1 FY23:
GBP139.8m) and unallocated costs GBP2.9m (H1 FY23: GBP2.4m).
Underlying costs of the business were well controlled given the
inflationary environment with operating costs as a percentage of
sales falling by -220bps year-on-year. This included the
annualisation of Lodge Tyre which was acquired in October 2022
adding approximately GBP14m of costs through H1.
Unallocated costs of GBP2.9m (H1 FY23: GBP2.4m) represent
amortisation charges in respect of intangible assets acquired
through business combinations, which arise on consolidation of the
Group. The increase in the current period from H1 FY23 is due to
the impact of the acquisition of Lodge Tyre in October 2022.
The overall EBIT performance of the Group increased by GBP3.8m
vs H1 FY23, driven by the strong performance in Autocentres. Group
Underlying EBITDA increased 11.7% from H1 FY23 to GBP90.9m (H1
FY23: GBP81.4), whilst finance costs were GBP6.3m (H1 FY23:
GBP5.4m).
Underlying Profit Before Tax for the period was up 15.8% in H1
FY23 at GBP21.3m (H1 FY23: GBP18.4m). The non-underlying charge of
GBP2.0m in the period (H1 FY23: credit GBP0.3m) relates principally
to adjustments to store and autocentre closure cost provisions and
organisational restructure costs, offset by the release of
provisions for closure costs in prior years. After non-underlying
items, Group Profit Before Tax was GBP19.3m (H1 FY23:
GBP18.7m).
Retail
H1 FY24 H1 FY23* Change
GBPm GBPm 24 vs 23
Revenue 516.6 500.5 3.2%
Gross Profit 236.8 245.9 (3.7%)
Gross Margin 45.8% 49.1% (330bps)
Operating Costs (217.3) (216.5) 0.4%
EBIT before non-underlying items 19.6 29.4 (33.3%)
Non-underlying items (1.1) 1.7 N/A
EBIT 18.5 31.1 (40.5%)
Underlying EBITDA 59.8 69.3 (13.7%)
*H1 FY23 results restated. See note 20 in the Condensed
Consolidated Interim Financial Statements Revenue for the Retail
business of GBP516.6m reflected, on a constant-currency basis, a
one-year like-for-like (LFL) sales increase of 4.1%.
Please refer to the Retail Operational Review in the Chief
Executive's Statement for further commentary on the trading
performance in the period. Like-for-like revenues and total sales
revenue mix for the Retail business are split by category
below:
H1 FY24 vs FY23 H1 FY24 H1 FY23
LFL (%) Total sales mix (%) Total sales mix (%)
Motoring 8.2 62.8 60.2
Cycling (2.8) 37.2 39.8
Retail 4.1
Gross profit for the Retail business at GBP236.8m (H1 FY23:
GBP245.9m) represented 45.8% of sales. The 330 bps year-on-year
decrease in gross margin % is largely driven by inflationary cost
pressures, particularly the impact of hedged foreign exchange
rates, which is detailed below. Continued investment in price and
promotion to provide value for customers also suppressed margin in
the period, partially offset by the benefits of our better buying
program.
The table below shows the average exchange rate reflected in
cost of sales. The Group hedges its US dollar cashflows 12 -18
months in advance and therefore the average exchange rate reflected
in cost of sales in the period reflects the prevailing hedged rates
at this time.
H1 FY24 H1 FY23
Average GBP: USD rate reflected in cost of sales 1.26 1.33
A GBP0.1m charge (H1 FY23: GBP4.5m credit) has been recognised
in the period relating to derivative financial instruments that do
not qualify for hedge accounting under the rules of IFRS 9 in the
context of the Group's policy to hedge its inventory purchases. The
charge has been recognised at fair value through the income
statement. A GBP1.2m credit (H1 FY23*: GBP10.1m) has also been
recognised through Other Comprehensive Income relating to the
increase in fair value of derivative financial instruments for
which hedge accounting has been applied.
Retail operating costs before non-underlying items were broadly
flat, increasing by just 0.3% against H1 FY23 to GBP217.3m (H1
FY23: GBP216.5m). This reflects tight cost control across all areas
and the delivery of cost and efficiency savings, most notably in
marketing, and has driven a reduction in the cost to sales ratio of
120 bps.
*H1 FY23 results restated. See note 20 in the Condensed
Consolidated Interim Financial Statements
Autocentres
H1 FY24 H1 FY23* Change
GBPm GBPm 24 vs 23
Revenue 356.9 266.6 33.9%
Gross Profit 180.5 136.6 32.1%
Gross Margin 50.6% 51.2% (60bps)
Operating Costs (169.5) (139.8) 21.2%
EBIT before non-underlying items 10.9 (3.2) N/A
Non-underlying items (0.9) (1.4) N/A
EBIT 10.0 (4.6) N/A
Underlying EBITDA 31.1 12.5 149.2%
*H1 FY23 results restated. See note 20 in the Condensed
Consolidated Interim Financial Statements
Autocentres generated total revenues of GBP356.9m (H1 FY23:
GBP266.6m), an increase of 33.9%, with a LFL increase of 18.0%.
The increase in total revenue from FY23 was driven by the
acquisition of Lodge Tyre, but the underlying Autocentre business
also performed strongly on a like-for-like basis with growth in all
categories, particularly servicing, maintenance and repairs and
tyres.
Gross profit at GBP180.5m (H1 FY23: GBP136.6m) represented a
gross margin of 50.6%, a decrease from the 51.2% gross margin in H1
FY23, reflecting the impact of lower margin tyres becoming a
greater proportion of revenue following the acquisition of Lodge
Tyre in October 2022, which made up c15% of sales in H1.
Autocentre Underlying EBIT of GBP10.9m was GBP14.1m higher
versus H1 FY23. Autocentres operating costs increased by GBP29.7m
(+21.2%) primarily driven by the acquired Lodge business, totalling
c.GBP14m, with the remaining variance driven by an increase in
wages and salaries due to increased headcount, primarily in
technicians and costs to support the growth in the business. The
cost to sales ratio improved by 490 bps to 47.5%, showing the
benefit of leveraging the fixed cost base.
Portfolio Management
The Retail store portfolio as at 29 September 2023 comprised 392
stores (end of H1 FY23: 397; end of FY23: 393). No new Retail
stores were opened and one was closed during the period.
The Autocentres portfolio as at 29 September 2023 comprised 589
locations (304 Halfords Autocentres, 41 McConechy's, 230 National
Garages & 14 HME hubs). At the end of H1 FY23 there were 593
locations and at the end of FY23, 643.
As at 29 September 2023 there are a total of 746 vans in
operation, 198 of which are Halfords Mobile Expert, 118
McConechy's, 90 Universal, 272 Lodge and 68 National. At the end of
H1 FY23 there were 482 vans across the Group, with 746 at the end
of FY23 following the acquisition of Lodge Tyre.
The following table outlines the changes in the Retail and
Autocentres store portfolio over the 26-week period:
Retail Autocentres
Relocations - 2
Leases re-negotiated 20 23
Openings - 5
Closed 1 2
Net Non-Underlying items
The following table outlines the components of the
non-underlying items recognised in the period:
H1 FY24 H1 FY23
GBPm GBPm
Organisational restructure costs 1.9 0.5
Closure costs (1.2) (2.8)
Acquisition and investment related fees 0.3 1.6
Replacement of warehouse management system 0.7 0.4
Other 0.3 -
Net non-underlying items charge/(credit) 2.0 (0.3)
In the period organisational restructure costs of GBP1.9m were
incurred relating to the integration of the central functions of
the National Tyres business and other restructuring activities.
GBP1.0m of this related to redundancy costs, along with GBP0.9m of
other costs relating to restructuring activity.
During FY20 and FY21 the group completed a strategic review of
the profitability of the physical estate and subsequently closed a
number of stores and garages. Assets were impaired and costs
associated with the ongoing onerous commitments under the lease
agreements and other costs associated with the property exits were
provided for accordingly. In the current period, a credit of
GBP1.2m (HY23: GBP2.8m) relates to the release of some of these
provisions as the group continues to negotiate lease disposals and
review provisions held. These will continue to unwind as property
exits are negotiated with landlords and tenants. This may result in
further amounts being released to the income statement due to the
significant estimation uncertainty over the timing of exits and the
final negotiated settlements.
Acquisition and investment related costs of GBP0.3m (HY23:
GBP1.6m) in the period comprise professional fees and acquisition
costs incurred in relation to the acquisitions of National Tyres
and the Lodge Tyre Company.
Costs relating to the replacement of the Warehouse Management
system were incurred during the current period and in FY23.
Finance Cost
The finance cost for the period was higher year-on-year at
GBP6.3m (H1 FY23: GBP5.4m), as a result of an increase in the level
of bank interest, reflecting the current economic conditions and
higher interest rate environment. Finance costs pre IFRS 16 have
increased compared to the prior year to GBP2.0m (H1 FY23:
GBP1.3m).
Taxation
The taxation charge on profit for the period was GBP4.7m (H1
FY23: GBP4.0m), including a GBP0.1m credit (H1 FY23: GBP0.2m
charge) in respect of non-underlying items. The effective tax rate
of 24.6% (H1 FY23: 20.7%) differs from the UK corporation tax rate
(25%) principally due to adjustments in relation to prior periods
and the impact of lower overseas tax rates in comparison to the
increased UK statutory rate of 25%.
The full year FY24 effective tax rate is expected to be around
24.8% which is lower than the statutory rate due in part to
adjustments relating to prior periods and the impact of lower
overseas tax rates.
Earnings Per Share ("EPS")
Underlying Basic EPS was 7.6 pence (H1 FY23: 6.7p) and after
non-underlying items 6.7 pence (H1 FY23: 6.8 pence after
non-underlying items). Basic weighted-average shares in issue
during the period were 217.5m (H1 FY23: 217.2m). The increase in
the basic weighted-average shares in issue during the period from
H1 FY23 is due to the reduction in the weighted-average number of
shares held by the Employee Benefit Trust.
Dividend
The Board have declared an interim dividend of 3p per share in
respect of the period to 29 September 2023 (H1 FY22: 3p). The
interim dividend will be paid on 19 January 2024 to shareholders
who are on the register of members, with an ex-dividend date of 14
December 2023 and a record date of 15 December 2023.
Capital Expenditure
Capital expenditure in the period totalled GBP18.7m (H1 FY23:
GBP20.0m).
Retail capital expenditure was GBP7.6m, of which GBP5.0m related
to IT infrastructure and e commerce, mainly focused on the
development of our Loyalty offering and the continued development
of the Group's websites. GBP1.9m was invested in stores, with the
majority of the remaining balance related to software investment in
Tredz & Wheelies.
Autocentres capital expenditure was GBP11.1m of which GBP5.2m
related to IT software expenditure on the development of Avayler
and PACE, the Garage Workflow System. Expenditure on property in
the period was GBP2.3m, with GBP1.4m on new vehicles and GBP2.2m
related to asset replacement.
H1 FY23 capital expenditure was GBP20m. Of this, GBP14.1m was
spent in Retail, with GBP6.5m related to various business system
improvements, GBP1.0m invested in store maintenance, GBP2.2m spent
on IT systems and GBP1m invested within Tredz & Wheelies
relating to software. The remaining GBP5.9m was spent in
Autocentres, with GBP1.6m spent on IT software, GBP2.5m on asset
replacement and GBP1m on support centre costs. Within the H1 FY23
spend, GBP1.7m was attributable to the integration of National
Tyres.
Inventories
Group inventory held at the period end was GBP262.9m (H1 FY23:
GBP248.0m). The FY23 year-end balance was GBP256.2m and as such the
H1 FY24 stock balance represents a GBP6.7m increase on the year end
position. This has been driven by product inflation and investment
in Autocentres to support growth.
Retail inventory decreased to GBP188.8m (H1 FY23: GBP193.7m,
FY23: GBP204.7m). This reduction demonstrates good progress in our
plans to reduce our overall stock levels in retail by the end of
the financial year. Tredz and Wheelies stock value was GBP13.3m (H1
FY23: GBP13.2m, FY23: GBP12.6m).
Autocentres' inventory was GBP60.9m (H1 FY23: GBP41.1m, FY23
GBP53.1m). The increase of GBP19.8m since last year is driven by
the acquisition of Lodge Tyres (GBP9.3m) and investment to support
the strong revenue growth.
Cashflow and Borrowings
Adjusted Operating Cash Flow during the period, was GBP64.3m (H1
FY23: GBP74.7m). After acquisitions, taxation, capital expenditure,
net finance costs, and lease payments, Free Cash outflow of
GBP19.2m (H1 FY23: GBP0.1m outflow) was generated in the period.
The decrease in Free Cash Flow of GBP19.1m from H1 FY23 is
primarily due to the working capital movements from H1 FY23.
Group net debt, including IFRS 16 lease debt, was GBP372.3m at
the balance sheet date (H1 FY23: GBP336.0m, YE FY23 348.7m)
consisting of GBP16.2m of cash, GBP(10.9)m bank overdrafts,
GBP(49.4)m the Group's revolving credit facility, GBP(2.9m) of
other borrowings and GBP(325.3)m of Lease Liabilities. The increase
in the Group's net debt from FY23 year-end of GBP23.6m relates to a
decrease of GBP21.6m in Lease Liabilities, GBP26.9m cash outflow,
GBP0.6m of other non-cash movements, and a GBP17.7m drawdown on the
Group's revolving credit facility and other borrowings.
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 financial year are described in the Strategic
Report on page 76 of the Halfords Group plc Annual Report and
Accounts for the period ending 31 March 2023 and all are considered
relevant to the H1 FY24 reporting. These include:
-- Business Strategy ? Capability and capacity to effect change
? Stakeholder support and confidence in strategy ? Value
proposition ? Brand appeal and market share ? Climate change &
electrification
-- Financial? Sustainable business model
-- Compliance? Regulatory and compliance ? Service quality ?
Cyber security
-- Operational? Colleague engagement/culture ? Skills shortage ?
IT infrastructure failure ? Disruption to end to end supply
chain
Jo Hartley Chief Financial Officer
28 November 2023 Glossary of Alternative Performance
Measures
In the reporting of financial information, the Directors have
adopted various Alternative Performance Measures ("APMs"). APMs
should be considered in addition to IFRS measurements, of which
some are shown on Page 1. The Directors believe that these APMs
assist in providing useful information on the underlying
performance of the Group, enhance the comparability of information
between reporting periods, and are used internally by the Directors
to measure the Group's performance, not necessarily comparable to
other entities APMs.
The key APMs that the Group uses are as follows: 1.
Like-for-like ("LFL") sales represent revenues from stores, centres
and websites that have been tradingfor at least a year (but
excluding prior year sales of stores and centres closed during the
year) at constantforeign exchange rates. 2. Underlying EBIT equates
to results from operating activities before non-underlying items,
as shown in theGroup Income Statement. Underlying EBITDA further
removes depreciation and amortisation. 3. Underlying Profit Before
Tax is profit before income tax and non-underlying items as shown
in the GroupIncome Statement. 4. Underlying Earnings Per Share is
profit after income tax before non-underlying items as shown in
theGroup Income Statement, divided by the weighted average number
of ordinary shares in issue during the period. Theweighted average
number of shares excludes shares held by an Employee Benefit Trust
and has been adjusted for theissue/purchase of shares during the
period. 5. Net Debt is current and non-current borrowings less cash
and cash equivalents, both in-hand and at bank,as shown in the
Consolidated statement of financial position, as reconciled
below:
H1 FY24 H1 FY23*
GBPm GBPm
Cash and cash equivalents 16.2 78.0
Borrowings - current (13.8) (11.5)
Borrowings - non-current (49.4) (34.2)
Lease liabilities - current (71.9) (75.2)
Lease liabilities - non-current (253.4) (293.1)
Net Debt (372.3) (336.0)
*Restated see note 20 for further details 6. Net Debt to
Underlying EBITDA ratio is represented by the ratio of Net Debt to
Underlying EBITDA (both ofwhich are defined above). 7. Adjusted
Operating Cash Flow is defined as EBITDA plus share-based payment
transactions and loss ondisposal of property, plant and equipment,
less working capital movements and movements in provisions,
asreconciled below:
H1 FY24 H1 FY23*
GBPm GBPm
Underlying EBIT 27.6 23.8
Depreciation and Amortisation 63.3 57.6
Underlying EBITDA 90.9 81.4
Non-underlying operating (expenses)/ income (2.0) 0.3
EBITDA 88.9 81.7
Share-based payment transactions 2.5 0.4
(Gain)/Loss on disposal of property, plant & equipment (0.6) 0.5
Working capital movements (24.9) (5.6)
Provisions movement (1.6) (2.3)
Adjusted Operating Cash Flow 64.3 74.7
*Restated see note 20 for further details 8. Free Cash Flow is
defined as Adjusted Operating Cash Flow (as defined above) less
capital expenditure,net finance costs, taxation, exchange
movements, and capital lease payments; as reconciled below:
H1 FY24 H1 FY23*
GBPm GBPm
Adjusted Operating Cash Flow 64.3 74.7
Capital expenditure (22.4) (25.5)
Net finance costs (5.8) (5.0)
Taxation (14.5) (5.9)
Exchange movements (1.8) (4.2)
Supplier financing 2.2 4.7
Payment of Capital element of Leases (41.2) (38.9)
Free Cash Flow (19.2) (0.1)
*Restated see note 20 for further details
Halfords Group plc
Condensed consolidated income statement
For the 26 weeks to 29 September 2023
26 weeks to 26 weeks to 52 weeks to
29 September 30 September 31 March
2023 2022 2023
Restated* Restated*
Unaudited
Unaudited
Notes GBPm GBPm GBPm
Revenue 7 873.5 767.1 1,591.8
Cost of sales (456.2) (384.6) (816.6)
Gross profit 417.3 382.5 775.2
Operating expenses (389.7) (358.7) (718.9)
Operating profit before non-underlying items 27.6 23.8 56.3
Net non-underlying operating (expense) / income 8 (2.0) 0.3 (8.0)
Results from operating activities 25.6 24.1 48.3
Finance costs 9 (6.3) (5.4) (12.1)
Profit before tax and non-underlying items 21.3 18.4 44.2
Net non-underlying operating (expense) / income 8 (2.0) 0.3 (8.0)
Profit before tax 19.3 18.7 36.2
Tax on underlying items 10 (4.8) (3.8) (9.2)
Tax on non-underlying items 8 0.1 (0.2) 1.1
Profit for the period attributable to equity shareholders 14.6 14.7 28.1
Earnings per share
Basic earnings per share 13 6.7p 6.8p 12.9p
Diluted earnings per share 13 6.4p 6.6p 12.4p
Basic underlying earnings per share 13 7.6p 6.7p 16.1p
Diluted underlying earnings per share 13 7.3p 6.5p 15.4p
* Please refer to Note 20 for further details
Condensed consolidated statement of comprehensive income
For the 26 weeks to 29 September 2023
26 weeks to 26 weeks to 52 weeks to
31 March
29 September 2023 30 September 2022
2023
Restated* Restated*
Unaudited
Unaudited
GBPm GBPm GBPm
Profit for the period 14.6 14.7 28.1
Other comprehensive income
Cash Flow hedges: fair value changes in the period 1.2 10.1 2.7
Income tax on other comprehensive income (0.7) (1.1) 1.1
Other comprehensive income for the period,
0.5 9.0 3.8
net of tax
Total comprehensive income for the period
15.1 23.7 31.9
attributable to equity shareholders
* Please refer to Note 20 for further details
All items within the Condensed consolidated statement of
comprehensive income are classified as items that are or may be
recycled to the consolidated income statement.
The notes on pages 27 to 40 are an integral part of these
condensed consolidated interim financial statements.
Condensed consolidated statement of financial position
As at 29 September 2023
As at
As at As at
31 March
29 September 2023 30 September 2022
2023
Restated*
Unaudited Restated* Unaudited
Notes GBPm GBPm GBPm
Assets
Non-current assets
Intangible assets 14 481.6 444.7 482.0
Property, plant and equipment 14 92.8 97.9 97.8
Right-of-use assets 14 294.5 329.8 312.6
Derivative financial instruments 0.3 0.7 -
Deferred tax asset 9.0 13.1 10.9
Total non-current assets 878.2 886.2 903.3
Current assets
Inventories 262.9 248.0 256.2
Trade and other receivables 162.5 118.2 144.6
Derivative financial instruments 1.4 15.7 1.1
Current tax assets 7.5 1.8 -
Cash and cash equivalents 15 16.2 78.0 41.9
Total current assets 450.5 461.7 443.8
Total assets 1,328.7 1,347.9 1,347.1
Liabilities
Current liabilities
Borrowings 15 (13.8) (11.5) (9.7)
Lease liabilities (71.9) (75.2) (77.6)
Derivative financial instruments (1.3) (0.1) (3.7)
Trade and other payables (360.0) (350.8) (362.3)
Current tax liabilities - - (3.6)
Provisions (13.4) (20.3) (11.2)
Total current liabilities (460.4) (457.9) (468.1)
Net current (liabilities)assets (9.9) 3.8 (24.3)
Non-current liabilities
Borrowings 15 (49.4) (34.2) (34.0)
Lease liabilities (253.4) (293.1) (269.3)
Derivative financial instruments - (0.1) (0.5)
Trade and other payables (3.9) (3.7) (3.5)
Provisions (11.0) (4.3) (14.8)
Total non-current liabilities (317.7) (335.4) (322.1)
Total liabilities (778.1) (793.3) (790.2)
Net assets 550.6 554.6 556.9
Shareholders' equity
Share capital 16 2.2 2.2 2.2
Share premium 16 212.4 212.4 212.4
Investment in own shares (22.9) (13.1) (12.7)
Other reserves 0.9 5.5 (1.1)
Retained earnings 358.0 347.6 356.1
Total equity attributable to equity holders of the Company 550.6 554.6 556.9
* Please refer to Note 20 for further details
Condensed consolidated statement of changes in equity For the 26
weeks to 29 September 2023 (Unaudited)
Attributable to the equity holders of the Company
Other reserves
Share Share Investment Capital Hedging Retained Total
capital premium in own redemption reserve earnings
account shares reserve equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance at 31 March 2023 2.2 212.4 (12.7) 0.3 (1.4) 356.1 556.9
Total comprehensive income for the period
Profit for the period - - - - - 14.6 14.6
Other comprehensive income
Cash flow hedges:
Fair value changes in the - - - - 1.2 - 1.2
period
Income tax on other comprehensive income - - - - (0.7) - (0.7)
Total other comprehensive income for the - - - - 0.5 - 0.5
period net of tax
Total comprehensive income for the period - - - - 0.5 14.6 15.1
Hedging gains and losses and costs of hedging - - - - 1.5 - 1.5
transferred to the cost of inventory
Transactions with owners
Acquisition of Treasury shares - - (10.3) - - - (10.3)
Share options exercised - - 0.1 - - - 0.1
Share-based payment transactions - - - - - 2.5 2.5
Income tax on share-based payment - - - - - - -
transactions
Dividends to equity holders - - - - - (15.2) (15.2)
Total transactions with owners - - (10.2) - - (12.7) (22.9)
Balance at 29 Sept 2023 2.2 212.4 (22.9) 0.3 0.6 358.0 550.6
Condensed consolidated statement of changes in equity
(continued) For the 26 weeks to 30 September 2022 (Unaudited)
Restated*
Attributable to the equity holders of the Company
Other reserves
Share Share Investment in Capital Hedging Retained Total
capital premium own shares redemption reserve* earnings*
account reserve equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance at 1 April 2022 2.2 212.4 (11.6) 0.3 1.7 346.0 551.0
Total comprehensive income for the period
Profit for the period - - - - - 14.7 14.7
Other comprehensive income
Cash flow hedges:
Fair value changes in the - - - - 10.1 - 10.1
period
Income tax on other comprehensive income - - - - (1.1) - (1.1)
Total other comprehensive income for the - - - - 9.0 - 9.0
period net of tax
Total comprehensive income for the period - - - - 9.0 14.7 23.7
Hedging gains and losses and costs of - - - - (5.5) - (5.5)
hedging transferred to the cost of inventory
Transactions with owners
Acquisition of Treasury shares - (1.5) - - - (1.5)
Share options exercised - - - - - - -
Share-based payment transactions - - - - - 0.4 0.4
Income tax on share-based payment - - - - - (0.5) (0.5)
transactions
Dividends to equity holders - - - - - (13.0) (13.0)
Total transactions with owners - - (1.5) - - (13.1) (14.6)
Balance at 30 Sept 2022 2.2 212.4 (13.1) 0.3 5.2 347.6 554.6
* Please refer to Note 20 for further details
Condensed consolidated statement of cash flows For the 26 weeks
to 29 September 2023
26 weeks to 26 weeks to 52 weeks to
31 March
29 September 2023 30 September 2022
2023
Restated*
Unaudited Restated*
Unaudited
Notes GBPm GBPm GBPm
Cash Flows from operating activities
Profit after tax for the period before non-underlying items 16.5 14.6 35.0
Non-underlying items 8 (1.9) 0.1 (6.9)
Profit after tax for the period 14.6 14.7 28.1
Depreciation - property, plant and equipment 13.6 10.2 28.1
Impairment - property, plant and equipment - 0.6 1.2
Amortisation of right-of-use assets 39.5 37.4 75.2
Amortisation - intangible assets 10.2 9.4 17.9
Net finance costs 6.3 5.4 12.1
Loss on disposal of property, plant and equipment and intangibles 0.2 1.2 1.7
Gain on disposal of leases (0.8) (0.7) (0.4)
Equity-settled share-based payment transactions 2.5 0.4 2.4
Exchange movement (1.8) (4.2) (8.0)
Income tax expense 4.7 4.0 8.1
Increase in inventories (7.1) (22.2) (12.7)
Increase in trade and other receivables (20.1) (26.7) (32.2)
Increase in trade and other payables 2.3 43.3 39.3
Decrease in provisions (1.6) (2.3) (1.3)
Corporation tax paid (14.5) (5.9) (4.7)
Net cash from operating activities 48.0 64.6 154.8
Cash Flows from investing activities
Acquisition of subsidiary, net of cash acquired - - (32.6)
Purchase of intangible assets (8.4) (10.9) (25.4)
Purchase of property, plant and equipment (14.0) (14.6) (29.0)
Net cash used in investing activities (22.4) (25.5) (87.0)
Cash Flows from financing activities
Repurchase of treasury shares (10.3) (1.5) (1.5)
Proceeds from share options exercised 0.1 - 0.4
Finance costs paid (1.5) (0.7) (2.5)
Proceeds from borrowings 375.7 35.0 337.0
Repayments of borrowings (358.0) - (302.0)
Repayment of loan - - (1.7)
Transaction costs from borrowings - - (1.8)
Interest paid on lease liabilities (4.3) (4.3) (8.8)
Payment of capital element of leases (41.2) (38.9) (80.5)
Payments relating to supplier financing (25.0) (2.8) (23.5)
Receipts relating to supplier financing 27.2 7.5 22.7
Dividends paid 12 (15.2) (13.0) (19.5)
Net cash used in financing activities (52.5) (18.7) (81.7)
Net (decrease)/increase in cash and bank overdrafts 15 (26.9) 20.4 (13.9)
Cash and cash equivalents at the beginning of the period 15 32.2 46.1 46.1
Cash and cash equivalents at the end of the period 15 5.3 66.5 32.2
* Please refer to Note 20 for further details
Bank overdrafts are included within Cash and cash equivalents
above, see note 15 for further details.
The notes on pages 27 to 40 are an integral part of these
condensed consolidated interim financial statements.
Notes to the condensed consolidated interim financial statements
For the 26 weeks to 29 September 2023 1. General information
The condensed consolidated interim financial statements of
Halfords Group plc (the "Company") comprise the Company together
with its subsidiary undertakings (the "Group").
The Company is a public limited company incorporated, domiciled
and registered in England and Wales. Its registered office is
Icknield Street Drive, Washford West, Redditch, Worcestershire, B98
0DE.
The Company is listed on the London Stock Exchange.
These condensed consolidated interim financial statements were
approved by the Board of Directors on 28 November 2023. 2.
Statement of compliance
These condensed consolidated interim financial statements for
the 26 weeks to 29 September 2023 have been prepared in accordance
with IAS 34 'Interim financial reporting' as adopted for use in the
UK. They do not include all the information required for full
annual financial statements and should be read in conjunction with
the Annual Report and Accounts for the period ended 31 March 2023,
which have been prepared in accordance with UK adopted
international accounting standards.
The comparative figures for the financial period ended 31 March
2023 are not the Group's statutory accounts for that financial
period. Those accounts have been reported on by the Group's
auditors and delivered to the registrar of companies. The report of
the auditor was (i) unqualified, (ii) did not include a reference
to any matters to which the auditor drew attention by way of
emphasis without qualifying their report, and (iii) did not contain
a statement under section 498 (2) or (3) of the Companies Act 2006.
3. Risks and uncertainties
The Directors consider that the principal risks and
uncertainties which could have a material impact on the Group's
performance in the remaining 26 weeks of the financial year remain
the same as those stated on pages 76 to 81 of the Annual Report and
Accounts for the period ended 31 March 2023, which are available at
website www.halfordscompany.com. These are also detailed in the
Chief Financial Officer's Statement on page 72. 4. Material
accounting policies
Going Concern
The directors have reviewed the current financial performance,
liquidity and forecasts of the business. Further details of the
assessment are provided on pages 82 to 83 of the Annual Report and
Accounts for the period ended 31 March 2023, which are available at
www.halfordscompany.com. The directors have updated the financial
forecasts to reflect the actual performance of the business during
the period covered by these interim condensed consolidated
financial statements and a more challenging economic environment in
the UK. Stress tests have been performed on these forecasts and no
issues have been raised.
Having reviewed current performance and forecasts, the Directors
consider that the Group has adequate resources to remain in
operation for the foreseeable future and have therefore continued
to adopt the going concern basis in preparing the condensed
consolidated interim financial statements. The Group's forecasts
and projections, taking into account reasonably possible changes in
trading performance, show that the Group has adequate resources to
continue in operational existence and are compliant with all
covenants for a period of at least 12 months from the date of
approval of these condensed consolidated interim financial
statements.
Accounting Policies
As required by the Disclosure and Transparency Rules of the
Financial Conduct Authority, the condensed consolidated interim
financial statements have been prepared by applying the accounting
policies and presentation that were applied in the preparation of
the Annual Report and Accounts for the period ended 31 March 2023,
which are published on the Halfords Group website,
www.halfordscompany.com.
The accounting policies adopted in the preparation of the
interim financial statements are the same as those set out in the
Group's Annual Report and Accounts for the period ended 31 March
2023. There has also been no change in the accounting policies
requiring disclosure within the Group's financial statements upon
application of the amendments to IAS 1 and IFRS Practice Statement
2 - Disclosure of Accounting Policies in the current period. 5.
Estimates and judgements
The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated
financial statements as at and for the 52-week period ended 31
March 2023 and the 26 weeks ended 30 September 2022. 6. Operating
segments
The Group has two reportable segments, Retail and Autocentres,
which are the Group's strategic business units. Autocentres became
a reporting segment of the Group as a result of the acquisition of
Nationwide Autocentres on 17 February 2010. The strategic business
units offer different products and services, and are managed
separately because they require different operational,
technological and marketing strategies.
The operations of the Retail reporting segment comprise the
retailing of automotive, leisure and cycling products and services
through retail stores and online platforms. The operations of the
Autocentres reporting segment comprise car servicing and repair
performed from Autocentres, commercial vehicles, mobile customer
vans through Halfords Mobile Expert and software as a service
provisions.
The Chief Operating Decision Maker is the Executive Directors.
Internal management reports for each of the segments are reviewed
by the Executive Directors on a monthly basis. Key measures used to
evaluate performance are Revenue and Operating Profit. Management
believe that these measures are the most relevant in evaluating the
performance of the segment and for making resource allocation
decisions.
The following summary describes the operations in each of the
Group's reportable segments. Performance is measured based on
segment operating profit, as included in the management reports
reviewed by the Executive Directors. The segmental reporting
disclosures are prepared in accordance with IFRS accounting
policies.
All material operations of the reportable segments are carried
out in the UK and all material non-current assets are in the UK.
The Group's revenue is driven by the consolidation of individual
small value transactions and as a result Group revenue is not
reliant on a major customer or group of customers. All revenue is
from external customers.
26 weeks to
29 September 2023
Retail Autocentres
Income statement Total
GBPm GBPm
Unaudited
GBPm
Revenue 516.6 356.9 873.5
Segment result before non-underlying items 19.6 10.9 30.5
Non-underlying items (1.1) (0.9) (2.0)
Segment result 18.5 10.0 28.5
Unallocated expenses1 (2.9)
Operating profit 25.6
Net financing expense (6.3)
Profit before tax 19.3
Taxation (4.7)
Profit after tax 14.6
26 weeks to
Retail Autocentres 30 September 2022
Income statement Restated* Restated* Total
GBPm GBPm Restated* Unaudited
GBPm
Revenue 500.5 266.6 767.1
Segment result before non-underlying items 29.4 (3.2) 26.2
Non-underlying items 1.7 (1.4) 0.3
Segment result 31.1 (4.6) 26.5
Unallocated expenses1 (2.4)
Operating profit 24.1
Net financing expense (5.4)
Profit before tax 18.7
Taxation (4.0)
Profit after tax 14.7
* Please refer to Note 20 for further details
52 weeks to
Retail Autocentres 31 March 2023
Income statement Restated* Total
GBPm GBPm Restated*
GBPm
Revenue 977.9 613.9 1,591.8
Segment result before non-underlying items 58.6 3.1 61.7
Non-underlying items (0.7) (7.3) (8.0)
Segment result 57.9 (4.2) 53.7
Unallocated expenses1 (5.4)
Operating profit 48.3
Net financing expense (12.1)
Profit before tax 36.2
Taxation (8.1)
Profit after tax 28.1
1 Unallocated expenses have been disclosed to reflect the format
of the internal management reports reviewed by the Chief Operating
Decision maker and include an amortisation charge of GBP2.9m in
respect of assets acquired through business combinations (H1 2023:
GBP2.4m, FY 2023: GBP5.4m).
* Please refer to Note 20 for further details
26 weeks to
29 September 2023
Retail Autocentres
Other segment items: Total
GBPm GBPm
Unaudited
GBPm
Capital expenditure 18.9 18.8 37.7
Depreciation and impairment expense 7.4 5.9 13.3
Impairment of right-of-use asset - - -
Amortisation of right-of-use asset 26.4 12.5 38.9
Amortisation expense 6.4 1.8 8.2
26 weeks to
30 September 2022
Retail Autocentres
Other segment items: Total
GBPm GBPm
Unaudited
GBPm
Capital expenditure 14.1 5.9 20.0
Depreciation expense 8.0 2.8 10.8
Amortisation of right-of-use asset 26.7 11.2 37.9
Impairment of right-of-use asset (0.8) 0.3 (0.5)
Amortisation expense 6.0 1.4 7.4
52 weeks to
31 March
Retail Autocentres
Other segment items: 2023
GBPm GBPm
Total
GBPm
Capital expenditure 26.6 21.5 48.1
Depreciation and impairment expense 17.2 12.1 29.3
Impairment of right-of-use asset (2.3) - (2.3)
Amortisation of right-of-use asset 53.0 24.5 77.5
Amortisation expense 15.5 2.4 17.9
There have been no significant transactions between segments in
the 26 weeks ended 29 September 2023 (2022: GBPnil). 7. Revenue A.
Revenue streams and location
The Group's operations and main revenue streams are those
described in the Annual Reports and Accounts for the period ended
31 March 2023. The Group's revenue is derived from transactions
with customers.
The Revenue split by the Group's operating segments is shown in
Note 6.
All significant revenue is recognised in the United Kingdom and
Republic of Ireland. B. Seasonality of operations
At the Group level, revenue is not materially seasonal, however,
there is some underlying seasonality in certain categories. For
example, sales of adult cycles tend to peak in the spring and
summer months whilst sales of children's cycles peak in the festive
season. Conversely, MOT activity is weighted towards the second
half of the year whilst motoring products also tend to exhibit
stronger demand in the winter months. Motoring products and
services typically generate higher profits than cycling, as a
result the Group's profit is expected to be weighted towards the
second half. 8. Non-underlying items
26 weeks to 26 weeks to 52 weeks to
29 September 30 September 31 March
2023 2022 2023
Unaudited Unaudited
GBPm GBPm GBPm
Non-underlying operating expenses:
Organisational restructure costs (a) 1.9 0.5 6.3
Closure costs (b) (1.2) (2.8) (0.2)
Acquisition costs (c) 0.3 1.6 1.9
Replacement of warehouse management system (d) 0.7 0.4 -
Other 0.3 - -
Non-underlying items before tax 2.0 (0.3) 8.0
Tax on non-underlying items (e) (0.1) 0.2 (1.1)
Non-underlying items after tax 1.9 (0.1) 6.9
Non-underlying items are those items that are unusual because of
their size, nature (one-off, non-trading costs) or incidence.
Management considers that these items should be separately
identified within their relevant income statement category to
enable a full understanding of the Group's results. a. In FY23, the
group undertook a restructure of the support centre. The second
phase of this restructurecontinued in H1 of FY24 including the
integration of support roles and financial systems relating to the
NationalTyres business, restructuring costs associated with the
separation of Avayler as a legal entity, and costs relatingto a
revision to procurement processes.
The costs in relation to the restructuring are: redundancy costs
GBP1.0m (FY23: 6.3m), finance system integration costs GBP0.2m
(FY23: 1.2m), procurement processes GBP0.4m (FY23: nil) and Avayler
separation GBP0.3m (FY23: nil). b. Closure costs represents costs
associated with the closure of a number of stores and garages
following astrategic review of the profitability of the physical
estate. The provision mostly relates to the impairment
ofright-of-use assets, tangible assets and property costs.
Following a review in the current period, GBP1.2m (FY23:GBP0.2m)
was deemed to be no longer required and was released to the income
statement. c. Fees incurred in relation to the acquisition of Lodge
Tyre Company GBP0.3m (FY23: GBP1.9m). d. During the current and
prior period, management incurred costs as a result of the
replacement of theWarehouse Management System. e. The tax charge in
H1 FY24 represents a tax rate of 2.3% applied to non-underlying
items (H1 FY23: 62.9%). 9. Finance Costs
26 weeks to 26 weeks to 52 weeks to
31 March
29 September 2023 30 September 2022
2023
Unaudited Unaudited
GBPm GBPm GBPm
Finance costs:
Bank borrowings (0.8) - (1.4)
Amortisation of issue costs on loans (0.6) (0.4) (0.8)
Commitment and guarantee fees (0.6) (0.7) (1.1)
Interest payable on lease liabilities (4.3) (4.3) (8.8)
Finance costs (6.3) (5.4) (12.1) 10. Income tax expense
Income tax expense is recognised based on the best estimate of
the weighted average annual income tax rate expected for the full
financial year, applied to the pre-tax income of the interim
period.
The taxation charge on profit for the financial period was
GBP4.7m (H1 FY23: GBP4.0m), including a GBP0.1m credit (H1 FY23:
GBP0.2m charge) in respect of non-underlying items. The effective
tax rate of 24.6% (H1 FY23: 20.7%) differs from the UK corporation
tax rate (25%) principally due to adjustments in prior periods and
the impact of lower overseas tax rates in comparison to the
increased UK statutory rate of 25%.
The corporation tax rate increased from 19% to 25%, effective
from 1 April 2023. The deferred tax asset in the period has been
calculated based on the headline rate of 25%.
For further detail on the tax effect prior period adjustments,
please refer to Note 20. 11. Financial Instruments and Related
Disclosures
Accounting classifications and fair values
The following table shows the carrying amounts and fair values
of financial assets and liabilities, including their levels in the
fair value hierarchy. It does not include fair value information
for financial assets and financial liabilities not measured at fair
value if the carrying amount is a reasonable approximation of fair
value.
Amortised Total
Fair Value - hedging Other financial
29 September 2023 Unaudited instruments cost liabilities carrying
amount
GBPm GBPm GBPm
GBPm
Financial assets measured at fair value
Derivative financial instruments used for 1.6 - - 1.6
hedging
1.6 - - 1.6
Financial assets not measured at fair
value
Trade and other receivables* - 102.8 - 102.8
Cash and cash equivalents - 16.2 - 16.2
- 119.0 - 119.0
Financial liabilities measured at fair
value
Derivative financial instruments used for (1.4) - - (1.4)
hedging
(1.4) - - (1.4)
Financial liabilities not measured at fair
value
Borrowings - - (63.2) (63.2)
Lease liabilities - - (325.3) (325.3)
Trade and other payables** - - (316.5) (316.5)
- - (705.0) (705.0)
*Prepayments of GBP12.1m and accrued income of GBP47.6m are not
included as a financial asset.
** Other taxation and social security payables of GBP20.8m,
deferred income of GBP10.3m and other payables of GBP16.3m are not
included as a financial liability.
Amortised Other
Fair Value - hedging Total carrying
30 September 2022 Unaudited Restated* instruments cost financial amount
liabilities
GBPm GBPm GBPm
GBPm
Financial assets measured at fair value
Derivative financial instruments used for 16.4 - - 16.4
hedging
16.4 - - 16.4
Financial assets not measured at fair
value
Trade and other receivables** - 91.2 - 91.2
Cash and cash equivalents - 78.0 - 78.0
- 169.2 - 169.2
Financial liabilities measured at fair
value
Derivative financial instruments used for (0.2) - - (0.2)
hedging
(0.2) - - (0.2)
Financial liabilities not measured at fair
value
Borrowings - - (45.7) (45.7)
Lease liabilities - - (368.4) (368.4)
Trade and other payables*** - - (302.3) (302.3)
- - (716.4) (716.4)
* Please refer to Note 20 for further details
** Prepayments and accrued income of GBP27m are not deducted as
a financial asset.
*** Other taxation and social security payables of GBP21.3m,
deferred income GBP9.2m and other payables of GBP21.7m are not
included as a financial liability.
Amortised Other
Fair Value - hedging Total carrying
31 March 2023 Restated* instruments cost financial amount
liabilities
GBPm GBPm GBPm
GBPm
Financial assets measured at fair value
Derivative financial instruments used for 1.1 - - 1.1
hedging
1.1 - - 1.1
Financial assets not measured at fair
value
Trade and other receivables** - 94.7 - 94.7
Cash and cash equivalents - 41.9 - 41.9
- 136.6 - 136.6
Financial liabilities measured at fair
value
Derivative financial instruments used for (4.2) - - (4.2)
hedging
(4.2) - - (4.2)
Financial liabilities not measured at fair
value
Borrowings - - (43.7) (43.7)
Lease liabilities - - (346.9) (346.9)
Trade and other payables*** - - (225.4) (225.4)
- - (616.0) (616.0)
* Please refer to Note 20 for further details
** Prepayments of GBP16.7m and accrued income of GBP33.2m are
not included as a financial asset.
*** Other taxation and social security payables of GBP34.1m,
deferred income and accruals of GBP79.3m and other payables of
GBP16.2m are not included as a financial liability.
Measurement of fair values
The fair values of each class of financial assets and
liabilities is the carrying amount, based on the following
assumptions:
Trade receivables, trade payables and The fair value approximates to the carrying amount because of the short
lease obligations, short-term maturity of these instruments.
deposits and borrowings
The fair value of bank loans and other loans approximates to the carrying value
Long-term borrowings reported in the statement of financial position as the majority are floating rate
where payments are reset to market rates at intervals of less than one year.
Forward currency contracts The fair value is determined using the market forward rates at the reporting
date and the outright contract rate.
Financial instruments carried at fair value are required to be
measured by reference to the following levels:
-- Level 1: quoted prices in active markets for identical assets
or liabilities;
-- Level 2: inputs other than quoted prices included within
Level 1 that are observable for the asset orliability, either
directly (i.e., as prices) or indirectly (i.e., derived from
prices); and
-- Level 3: inputs for the asset or liability that are not based
on observable market data (unobservableinputs).
All financial instruments carried at fair value have been
measured by a Level 2 valuation method. There have been no changes
to classifications in the current or prior period.
Credit risk
Credit risk is the risk of financial loss to the Group if a
customer or counterparty to a financial instrument fails to meet
its contractual obligations and arises principally from the Group's
receivables from customers.
The Group does not have any individually significant customers
and so no significant concentration of credit risk. The majority of
the Group's sales are paid in cash at point of sale which further
limits the Group's exposure. The Group's exposure to credit risk is
influenced mainly by the individual characteristics of each
customer. The Board of Directors has established a credit policy
under which each new customer is analysed individually for
creditworthiness before the Group's standard payment terms and
conditions are offered. The Group limits its exposure to credit
risk from trade receivables by establishing a maximum payment
period of one month for customers. All trade receivables are based
in the United Kingdom.
The Group has taken into account the historic credit losses
incurred on trade receivables and adjusted it for forward looking
estimates. The movement in the allowance for impairment in respect
of trade receivables during the period was GBP0.4m (2023: GBP0.3m).
12. Dividends
The Directors paid a final dividend of 7 pence per share on 15
September 2023 in respect of the financial period ended 31 March
2023 (FY22: 6p per share).
The Directors have declared an interim dividend for the 26 weeks
to 29 September 2023 of 3 pence per share (2023: 3p per share). The
interim dividend will be paid on 19 January 2024 to shareholders
who are on the register of members, with an ex-dividend date of 14
December 2023 and a record date of 15 December 2023. 13. Earnings
Per Share
Basic earnings per share is calculated by dividing the earnings
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 the Employee
Benefit Trust and has been adjusted for the issue/repurchase 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 26
weeks to 29 September 2023.
26 weeks to 26 weeks to 52 weeks
to
29 September 30 September 31 March
2023 2022
2023
Unaudited Unaudited
Number Number Number
m m m
Weighted average number of shares in issue 218.9 218.9 218.9
Less: shares held by the Employee Benefit Trust (1.4) (1.7) (1.5)
Weighted average number of shares for calculating basic earnings 217.5 217.2 217.4
per share
Weighted average number of dilutive share options 9.4 7.0 10.0
Weighted number of shares for calculating diluted earnings per 226.9 224.2 227.4
share
26 weeks to 26 weeks to 52 weeks to
31 March
29 September 2023 30 September 2022
2023
Unaudited Restated* Unaudited Restated*
GBPm GBPm GBPm
Earnings attributable to equity shareholders 14.6 14.7 28.1
Non-underlying items:
Operating expenses 2.0 (0.3) 8.0
Tax income on non-underlying items (0.1) 0.2 (1.1)
Underlying earnings before non-underlying items 16.5 14.6 35.0
Basic earnings per share 6.7p 6.8p 12.9p
Diluted earnings per share 6.4p 6.6p 12.4p
Basic underlying earnings per share 7.6p 6.7p 16.1p
Diluted underlying earnings per share 7.3p 6.5p 15.4p
* Please refer to Note 20 for further details
The alternative measure of earnings per share is provided as it
reflects the Group's underlying performance by excluding the effect
of non-underlying items. 14. Capital Expenditure - Tangible,
Intangible & Right-of-Use Assets
Right-of-use
Tangible and Intangible Assets
assets
Unaudited
Unaudited
GBPm GBPm
Net book value at 31 March 2023 579.8 312.6
Additions 18.6 19.0
Disposals (0.2) (1.2)
Effect of modification of lease - 3.6
Depreciation, amortisation and impairment (23.8) (39.5)
Net book value at 29 September 2023 574.4 294.5
Right-of-use
Tangible and Intangible Assets
assets
Unaudited
Unaudited
GBPm GBPm
Net book value at 1 April 2022 544.1 350.2
Additions 20.0 14.8
Disposals (1.3) -
Effect of modification of lease - 2.2
Depreciation, amortisation and impairment (20.2) (37.4)
Net book value at 30 September 2022 542.6 329.8 15. Analysis of Movements in the Group's Net Debt in the Period
At
At Cash Flow Other non-cash
changes 29 September
31 2023
March
2023 Unaudited Unaudited Unaudited
GBPm GBPm GBPm GBPm
Cash and cash equivalents 41.9 (25.7) - 16.2
Bank Overdrafts (9.7) (1.2) - (10.9)
Cash and cash equivalents (condensed consolidated statement of 32.2 (26.9) - 5.3
cash flows)
Debt due in less than one year - (2.7) (0.2) (2.9)
Debt due after one year (34.0) (15.0) (0.4) (49.4)
Total net debt excluding leases (1.8) (44.6) (0.6) (47.0)
Current lease liabilities (77.6) 45.5 (39.8) (71.9)
Non-current lease liabilities (269.3) - 15.9 (253.4)
Total lease liabilities (346.9) 45.5 (23.9) (325.3)
Total net debt (348.7) 0.9 (24.5) (372.3)
Non-cash changes comprise finance costs in relation to the
amortisation of capitalised debt issue costs of GBP0.6m (H1 FY23:
GBP0.8m), and movements in leases.
Cash and cash equivalents at the period end consist of GBP15.0m
(H1 FY23: GBP75.1m) of liquid assets, GBP1.2m (H1 FY23: GBP2.9m) of
cash held in Trust and GBP10.9m (H1 FY23: GBP11.5m) of bank
overdrafts.
Cashflow movements in debt relate to the drawdown of funds from
the Groups' revolving credit facility and payments in relation to
lease liabilities.
At
Other non-cash
At Cash Flow changes 30 September
2022
1 April
2022 Unaudited Unaudited Unaudited
Restated* Restated* Restated*
GBPm GBPm GBPm GBPm
Cash and cash equivalents 46.3 31.7 - 78.0
Bank Overdrafts (0.2) (11.3) - (11.5)
Cash and cash equivalents (condensed consolidated statement of 46.1 20.4 - 66.5
cash flows)
Debt due in less than one year* - - - -
Debt due after one year* - (35.0) 0.8 (34.2)
Total net debt excluding leases 46.1 (14.6) 0.8 32.3
Current lease liabilities (74.5) 43.2 (43.9) (75.2)
Non-current lease liabilities (316.5) - 23.4 (293.1)
Total lease liabilities (391.0) 43.2 (20.5) (368.3)
Total net debt (344.9) 28.6 (19.7) (336.0)
* Please refer to Note 20 for further details
Non-cash changes comprise finance costs in relation to the
amortisation of capitalised debt issue costs of GBP0.8m (H1 FY22:
GBP0.4m), and movements in leases.
Cash and cash equivalents at the period end consist of GBP75.1m
(H1 FY22: GBP86.0m) of liquid assets, GBP2.9m (H1 FY22: GBP5.1m) of
cash held in Trust and GBP11.5m (H1 FY22: GBP0.1m) of bank
overdrafts.
Cashflow movements in debt relate to the drawdown of funds from
the Groups' revolving credit facility to fund the acquisition of
LTC Trading Holdings Limited.
The above tables exclude amounts relating to a supplier
financing arrangement which commenced during the period ended 31
March 2023. At 1 April 2022 the balance due was nil, at 30
September 2022 GBP4.7m was due to the third party, at 31 March 2023
GBP0.7m was receivable from the third party, and at 29 September
2023 GBP2.2m was receivable from the third party. There were no
non-cash changes in relation to these amounts. 16. Share
Capital
Share Share premium
Number of shares
capital account
m
GBPm GBPm
As at 31 March 2023 and 29 September 2023 218.9 2.2 212.4
During the 26 weeks to 29 September 2023 and 30 September 2022,
there were no movements in company share capital. 17. Contingent
liability
The Group's banking arrangements include the facility for the
bank to provide a number of guarantees in respect of liabilities
owed by the Group during the course of its trading. In the event of
any amount being immediately payable under the guarantee, the bank
has the right to recover the sum in full from the Group. The total
amount of guarantees in place at 29 September 2023 amounted to nil
(2023: GBP0.4m).
Where right of set off is included within the Group's banking
arrangements, credit balances may be offset against the
indebtedness of other Group companies. 18. Related Party
Transactions
The key management personnel of the Group comprise the Executive
and Non-Executive Directors and the Halfords Limited and Halfords
Autocentres management boards. The details of the remuneration,
long-term incentive plans, shareholdings and share option
entitlements of individual Directors are included in the Directors'
Remuneration Report on pages 128 to 152 of the Group Annual Report
and Accounts for the period ended 31 March 2023.
During the period no share options (H1 FY23: none) were granted
to directors in relation to the Performance Share Plan ("PSP") and
no share options (H1 FY23: none) were granted in relation to the
Deferred Bonus Plan ("DBP"). 19. Post Balance Sheet Events
On 1 November 2023, a 5% minority stake of Avayler Trading
Limited ("Avayler") was sold by Avayler Holdings Limited to
Bridgestone Americas, Inc. ("Bridgestone") for consideration of
USD3m. As part of the share purchase agreement Bridgestone have the
right to compel Avayler Holdings Limited to repurchase
Bridgestone's shares in Avayler should certain conditions be
met.
Alongside the sale a commercial agreement was entered for
Bridgestone to become an ongoing client of Avayler. This agreement
is for an initial term of 15 years with certain break rights
included. 20. Prior Period Adjustments
The results for the 26 weeks to 30 September 2022 have been
restated to reflect adjustments which reduce the previously
reported profit before tax by GBP10.6m (profit after tax by
GBP8.4m) and results in certain reclassifications within the
condensed consolidated statement of financial position and
condensed consolidated statement of cash flows. The adjustments
have no cash impact.
1. Foreign exchange and hedge accounting for inventory purchased
in US dollars
A GBP5.4m increase to cost of sales and a decrease to inventory
has been adjusted relating to the correction of errors in the
accounting treatment of cash flow hedges under IFRS 9 and the
valuation of inventory under IAS 21 at the HY23 Balance sheet date.
As this adjustment fully reverses in the second half of FY23, there
is no impact on FY23 full year reported profits. a. Inventory
purchased in US dollars was translated incorrectly for the 26 weeks
to 30 September 2022. Tocorrect for this error in the financial
statements Inventory has been reduced by GBP3.2m within the
Condensedconsolidated statement of financial position as at 30
September 2022, with a corresponding increase in Cost ofsales of
the same amount within the Condensed consolidated income statement
for the 26 weeks to 30 September 2022. b. The timing and treatment
of the hedge accounting basis adjustment to the Inventory valuation
for the 26weeks to 30 September 2022 was incorrect. To correct for
this error in the Condensed consolidated statement offinancial
position at 30 September 2022 Inventory has been reduced by GBP3.6m
and the Cash Flow hedge reserve byGBP1.4m. The Condensed
consolidated income statement for the 26 weeks to 30 September 2022
has been corrected byincreasing Cost of sales for the period by
GBP2.2m.
2. Classification of revolving credit facility
The condensed consolidated statement of financial position as at
30 September 2022 has been restated to reflect a reclassification
of the revolving credit facility. This follows a further review of
the agreement by the directors during H2 2023 which confirmed that
there is an unconditional right to defer settlement of the
liability for over 12 months. As a result GBP34.2m has been
reclassified from current liabilities to non-current liabilities as
at 30 September 2022. This adjustment has no impact on reported
profit before tax, net assets or the condensed consolidated cash
flow statement. The consolidated statement of financial position as
at 31 March 2023 was correctly reported.
3. Supplier arrangements and period end cut-off
A GBP5.2m increase to cost of sales and correction to balances
within the Statement of Financial Position has been adjusted
relating to: (a) the correction of accounting for a new tyre
wholesale and distribution arrangement and (b) the correction of
errors identified in the goods received not invoiced ("GRNI")
reconciliation process at 30 September 2022. a. On 1 April 2022,
Halfords entered into a new arrangement with a third-party
logistics provider forwholesale tyre purchasing and distribution
services. Under this arrangement Halfords purchases tyres in bulk
frommanufacturers which are delivered to warehouses owned by the
third-party logistics provider prior to beingdistributed to
Halfords' Autocentres. This is a complex arrangement and whilst the
previous accounting correctlyrecognised the inventory on the
balance sheet, to reflect that title remains with Halfords, the
previous accountingdid not recognise the correct entries and
disclosures on the statement of financial position to reflect that
theinvoicing mechanism with the third party is akin to a supplier
financing arrangement. To correct for the errorwithin the Condensed
consolidated statement of financial position as at 30 September
2022, Inventories have beendecreased by GBP0.5m, Trade and other
receivables by GBP11.5m, and Trade and other payables by GBP12.0m.
In addition, thegross supplier financing receipts of GBP2.8m and
payments of GBP7.5m are now disclosed as financing in the statement
ofcash flows and a net receivable of GBP4.7m under the supplier
financing arrangement is disclosed in the net debtnote. This
adjustment does not have an impact on reported profits. The
arrangement was correctly accounted for at31 March 2023 and was not
in place at 1 April 2022. As part of the arrangement, title of
GBP1.4m of inventory wastransferred from Halfords to the
third-party distributor during the period, resulting in the
recognition of a saleof GBP1.4m and a corresponding entry to cost
of sales. b. The arrangement in point (a) above, together with the
scale of growth in the autocentres business andincreased
intercompany transactions between the enlarged Group, created
significant reconciliation complexityduring FY23. As a result of
this increased complexity, errors were identified in the GRNI
reconciliations at 30September 2022 and 31 March 2023. Halfords has
performed a full investigation and as a result, under-accruals
toGRNI have been identified. To correct for the error to the
Condensed consolidated statement of financial positionas at 30
September 2022, Trade and other payables have been increased by
GBP12.4m and Trade and other receivables byGBP7.2m. Cost of sales
has been increased by GBP5.2m within the Condensed consolidated
income statement for the 26weeks to 30 September 2022. The Tax
charge for the period has also been reduced by GBP1.0m as a result
of thisadjustment. A further correction is required to the
Condensed consolidated statement of financial position as at
31March 2023, with Trade and other payables increased by GBP7.3m.
In addition to the GBP5.2m increase to cost of sales inthe 26 weeks
to 30 September 2022, an additional GBP2.1m increase to cost of
sales has been processed for the period1 October 2022 to 31 March
2023. The Tax charge for the year ended 31 March 2023 has been
reduced by a total ofGBP1.4m as a result of this adjustment.
4. Classification of Merchant and Consumer Finance Fees
During the preparation of the FY24 interim results,
inconsistencies were identified in the classification of merchant
fees across the group within the FY23 Financial Statements. As a
result, merchant fees of GBP2.8m were incorrectly included within
Operating expenses instead of Cost of sales.
In addition, further inconsistencies were identified in the
measurement of revenue when financing companies provide consumer
credit to Halford's customers. Revenue and Cost of sales were
overstated by GBP1.7m within the FY23 Financial Statements, being
the difference between retail selling prices and the amounts
received from the financing companies.
To correct for these errors in the Condensed Consolidated Income
Statement for the 52 weeks to 31 March 2023, Revenue has been
reduced by GBP1.7m, Cost of Sales has been increased by GBP1.1m and
Operating expenses have been reduced by GBP2.8m. There has been no
impact on profit after tax nor on net assets.
The total impact of the above prior period adjustments on the
interim results for the 26 weeks to 30 September 2022 are as
follows:
26 weeks to
26 weeks to
30 September
30 September 1. Foreign 3. Supplier
exchange arrangements
Consolidated Income Statement 2022 2022
As originally Restated
reported GBPm GBPm
GBPm
GBPm
Revenue 765.7 - 1.4 767.1
Cost of Sales (372.6) (5.4) (6.6) (384.6)
Gross Profit 393.1 (5.4) (5.2) 382.5
Profit Before Tax 29.3 (5.4) (5.2) 18.7
Tax on underlying items (6.0) 1.2 1.0 (3.8)
Profit for the period attributable to equity 23.1 (4.2) (4.2) 14.7
shareholders
26 weeks to
26 weeks to
30 September
30 September 1. Foreign 3. Supplier
exchange arrangements
Consolidated Statement of Comprehensive 2022 2022
Income
As originally Restated
reported GBPm GBPm
GBPm
GBPm
Profit for the period 23.1 (4.2) (4.2) 14.7
Cash flow hedges:
Fair value changes in the period 9.0 1.1 - 10.1
Income tax on Other comprehensive income (0.9) (0.2) - (1.1)
Other comprehensive income for the period 8.1 0.9 - 9.0
Total comprehensive income for the period 31.2 (3.3) (4.2) 23.7
As at
As at
1. Foreign 2. RCF 3. Supplier 30 September
30 September 2022 exchange arrangements 2022
Consolidated Statement of Financial
Position As originally Restated
reported GBPm
GBPm GBPm
GBPm
GBPm
Deferred tax asset 13.2 (0.1) - - 13.1
Total non-current assets 886.3 (0.1) - - 886.2
Inventories 255.3 (6.8) - (0.5) 248.0
Trade and other receivables 122.4 - - (4.2) 118.2
Current tax asset - 0.8 - 1.0 1.8
Total current assets 471.4 (6.0) - (3.7) 461.7
Total assets 1,357.7 (6.1) - (3.7) 1,347.9
Borrowings (45.7) - 34.2 - (11.5)
Trade and other payables (350.3) - - (0.5) (350.8)
Current tax liabilities (0.3) 0.3 - - -
Total current liabilities (491.9) 0.3 34.2 (0.5) (457.9)
Net current (liabilities)/assets (20.5) (5.7) 34.2 (4.2) 3.8
Borrowings - - (34.2) - (34.2)
Total liabilities (793.1) 0.3 - (0.5) (793.3)
Net Assets 564.6 (5.8) - (4.2) 554.6
Other reserves 7.1 (1.6) - - 5.5
Retained earnings 356.0 (4.2) - (4.2) 347.6
Total Equity 564.6 (5.8) - (4.2) 554.6
26 weeks to
26 weeks to
30
30 September 1. Foreign 3. Supplier September
exchange arrangements
Consolidated Statement of Changes in Equity 2022 2022
As originally Restated
reported GBPm GBPm
GBPm
GBPm
Profit for the period 23.1 (4.2) (4.2) 14.7
Cash flow hedges:
Fair value changes in the period 9.0 1.1 - 10.1
Income tax on Other comprehensive income (0.9) (0.2) - (1.1)
Total other comprehensive income for the period net of tax 8.1 0.9 - 9.0
Total comprehensive income for the period 31.2 (3.3) (4.2) 23.7
Hedging gains and losses and costs of hedging transferred (3.0) (2.5) (5.5)
to the cost of inventory
Balance at 30 September 2022 564.6 (5.8) (4.2) 554.6
26 weeks to 26 weeks to
30 September 3. Supplier 30 September
1. Foreign exchange arrangements
2022 2022
Consolidated Statement of Cash Flows
As originally Restated
reported GBPm GBPm
GBPm
GBPm
Profit after tax for the period 23.1 (4.2) (4.2) 14.7
Exchange Movement (9.6) 5.4 - (4.2)
Income Tax Expense 6.2 (1.2) (1.0) 4.0
Increase in inventories (22.7) - 0.5 (22.2)
Increase in trade and other (30.9) - 4.2 (26.7)
receivables
Increase in trade and other payables 47.5 - (4.2) 43.3
Net cash from operating activities 69.3 - (4.7) 64.6
Payments relating to supplier - - (2.8) (2.8)
financing
Receipts relating to supplier - - 7.5 7.5
financing
Net cash from financing activities (23.4) - 4.7 (18.7)
26 weeks to 26 weeks to
30 September 30 September
Earnings Per Share
2022 2022
As originally reported Restated
Basic earnings per ordinary share 10.6p 6.8p
Diluted earnings per ordinary share 10.3p 6.6p
Basic earnings per ordinary share before non-underlying items 10.6p 6.7p
Diluted earnings per ordinary share before non-underlying items 10.3p 6.5p
The total impact of the above prior period adjustments on the
results for the 52 weeks to 31 March 2023 are as follows:
52 weeks to 31 52 weeks to 31
March March
3. Supplier 4. Merchant
2023 arrangements Fees 2023
Consolidated Income Statement
As originally Restated
reported
GBPm GBPm
GBPm
GBPm
Revenue 1,593.5 - (1.7) 1,591.8
Cost of Sales (808.2) (7.3) (1.1) (816.6)
Gross Profit 785.3 (7.3) (2.8) 775.2
Operating expenses (721.7) - 2.8 (718.9)
Profit Before Tax 43.5 (7.3) - 36.2
Tax on underlying items (10.6) 1.4 - (9.2)
Profit for the period attributable to equity 34.0 (5.9) - 28.1
shareholders
52 weeks to 31
52 weeks to 31 March March
3. Supplier 4. Merchant
2023 arrangements Fees 2023
Consolidated Statement of Financial
Position As originally Restated
reported
GBPm GBPm
GBPm
GBPm
Trade and other payables (355.0) (7.3) - (362.3)
Current tax liabilities (5.0) 1.4 - (3.6)
Total current liabilities (462.2) (5.9) - (468.1)
Net current liabilities (18.4) (5.9) - (24.3)
Total liabilities (784.3) (5.9) - (790.2)
Net Assets 562.8 (5.9) - 556.9
Retained earnings 362.0 (5.9) - 356.1
Total Equity 562.8 (5.9) - 556.9
52 weeks to 31 March 52 weeks to 31 March
3. Supplier
2023 arrangements 4. Merchant Fees 2023
Consolidated Statement of Cash
Flows As originally Restated
reported
GBPm GBPm
GBPm
GBPm
Profit after tax for the period 34.0 (5.9) - 28.1
Income Tax Expense 9.5 (1.4) - 8.1
Increase in trade and other 32.0 7.3 - 39.3
payables
Net cash from operating activities 154.8 - - 154.8
52 weeks to 31 March 52 weeks to 31 March
Earnings Per Share 2023 2023
As originally reported Restated
Basic earnings per ordinary share 15.6p 12.9p
Diluted earnings per ordinary share 15.0p 12.4p
Basic earnings per ordinary share before non-underlying items 18.8p 16.1p
Diluted earnings per ordinary share before non-underlying items 18.0p 15.4p
Responsibility statement of the Directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim FinancialReporting as adopted for
use in the UK;
-- the interim management report includes a fair review of the
information required by: a. DTR 4.2.7R of the Disclosure and
Transparency Rules, being an indication of important events that
haveoccurred during the first six months of the financial year and
their impact on the condensed set of financialstatements; and a
description of the principal risks and uncertainties for the
remaining six months of the year;and b. DTR 4.2.8R of the
Disclosure and Transparency Rules, being related party transactions
that have takenplace in the first six months of the current
financial year and that have materially affected the
financialposition or performance of the entity during that period;
and any changes in the related party transactionsdescribed in the
last annual report that could do so.
By order of the Board
Jo Hartley, Chief Financial Officer
28 November 2023
Halfords Group plc
Independent review report to Halfords Group plc For the 26 weeks
to 29 September 2023
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed consolidated financial
statements in the half-yearly financial report for the 26 weeks
ended 29 September 2023 are not prepared, in all material respects,
in accordance with UK adopted International Accounting Standard 34
and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
We have been engaged by the company to review the condensed
consolidated financial statements in the half-yearly financial
report for the 26 weeks ended 29 September 2023 which comprise the
condensed consolidated income statement, the condensed consolidated
statement of comprehensive income, the condensed consolidated
statement of financial position, the condensed consolidated
statement of changes in equity, the condensed consolidated
statement of cashflows and the related notes.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" ("ISRE (UK) 2410"). A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with UK adopted international
accounting standards. The condensed consolidated financial
statements included in this half-yearly financial report have been
prepared in accordance with UK adopted International Accounting
Standard 34, "Interim Financial Reporting.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410, however future events or conditions
may cause the group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the Company a conclusion on the condensed
consolidated financial statements in the half-yearly financial
report. Our conclusion, including our Conclusions Relating to Going
Concern, are based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority and for no other purpose. No person is
entitled to rely on this report unless such a person is a person
entitled to rely upon this report by virtue of and for the purpose
of our terms of engagement or has been expressly authorised to do
so by our prior written consent. Save as above, we do not accept
responsibility for this report to any other person or for any other
purpose and we hereby expressly disclaim any and all such
liability.
BDO LLP
Chartered Accountants
London, UK
28 November 2023
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
-----------------------------------------------------------------------------------------------------------------------
Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group. The issuer is solely responsible for the
content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
ISIN: GB00B012TP20
Category Code: IR
TIDM: HFD
LEI Code: 54930086FKBWWJIOBI79
Sequence No.: 287848
EQS News ID: 1783885
End of Announcement EQS News Service
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November 29, 2023 02:00 ET (07:00 GMT)
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