Steady revenue growth in challenging conditions
· Total Group Revenue +3.8% and +1.5% LFL
· Motoring +1.9% and Cycling +2.0% on a LFL basis, with total Cycling sales up 7.0%
· Retail gross margin decline as expected, primarily due to the adverse impact of FX year-on-year
· Autocentres sales -1.3% LFL, lower as planned and previously guided, with higher gross margin and EBIT
· Service-related Retail sales up 19.3%, with c.2 million in-store fitting and repair jobs performed
· Group online sales +10.8% and +4.8% LFL
Good cash generation and profit in line with market expectations
· c.£15m additional cost of sales in the first half from the weaker pound, representing the peak FX impact
· FX mitigation plans implemented and working
· Underlying Profit Before Tax of £36.8m, down £4.0m year-on-year
· Free Cash Flow of £31.1m, up £6.9m on H1 last year
· Net debt at £84.8m representing 0.8 times Underlying EBITDA
· Interim dividend per share of 6.0p, up 3.0%
And later;
Dividend ("DPS")
The Board has approved an interim dividend of 6.0 pence per share (H1 FY17: 5.83 pence), an increase of 3.0% on the prior period. This will be paid on 19 January 2018 to shareholders on the register at the close of business on 8 December 2017.
We continue to target coverage of around 2 times on average over time. However, the impact of adverse FX movements will reduce cover initially until fully mitigated, which will take some time.
https://www.investegate.co.uk/halfords- ... 00089897V/