Halfords Reports Group Revenues Up 9.6%, Flat Autocentre Sales
Halfords has reported that its group revenues (the period from 3 April to 26 July 2010, incorporating first quarter financial performance for the 13 weeks to 2 July 2010) increased 9.6 per cent year-on-year, reflecting the acquisition of Nationwide Autocentres in February 2010. However, like-for-like revenues at Halfords’ Retail and Autocentres business units were down -2.1 per cent and flat respectively. As a result, the Group level, this represented a like-for-like revenue decline of –1.9 per cent.
According to the company, the integration of the Nationwide Autocentres continued as planned. Four centres have been re-branded as Halfords Autocentres with encouraging initial results. It remains the firm’s intention to re-brand all centres by March 2011 and to open 12 new units in the current financial year.
Halfords reported that its autocentres continued to grow market share and capture increased fleet business. Nevertheless, trading was slightly behind internal forecasts, mirroring broader consumer trends. With margins and costs remaining under tight control the business says it remains on track to deliver full year operating profit in line with the first year of our business plan.
David Wild, chief executive officer, commented: “The resilience of the Halfords business model is confirmed by further like-for-like growth in our core categories despite the consumer headwinds experienced across the retail sector. Our focus remains on managing the controllable elements of the business. Actions taken to manage gross margins, reduce costs and increase efficiency, are delivering the benefits we expected. The integration of Nationwide is continuing well and I remain pleased with early performance and progress.”