Sales growth despite a tough retail back drop and unseasonal weather
· Total Group revenue +1.1% on a LFL basis
· Retail performance in the year was impacted by extremely mild winter temperatures, boosting Cycling performance, up +2.6% LFL, but adversely affecting Motoring which, as a result, was down -0.4% on a LFL basis
· Strong overall Q4 performance, despite tough comparators; Cycling at +12.4% LFL growth more than offset -5.4% LFL decline in Motoring
· Autocentres performed strongly across the year, with LFL sales +2.6% reflecting good growth in servicing, tyres and MOTs
· Group online sales, which represent 20% of total Group sales, grew +9.5%, with 83% of Halfords.com orders being collected in store
· Group service-related sales account for 24% of total Group sales, with both fitting income and number of jobs completed in growth year-on-year
Profit in line with guidance; Free Cash Flow supports full-year dividend
· Gross margin improved year-on-year and Group operating costs were tightly controlled in H2
· Autocentres EBIT increased significantly, by 34.1% to £5.5m. A clear focus on the operating model, along with good revenue growth and tight cost control, led Autocentres to a second year of profit growth
· Underlying Profit Before Tax of £58.8m was a reduction of £12.8m on last year. The decline was driven by a lower motoring sales mix year-on-year, due to mild winter temperatures, weakened consumer confidence in the run up to Christmas, retail inflation and investment in strategic projects
· The Group continues to be strongly cash generative, with Free Cash Flow of £42.7m, up £1.2m year-on-year
· Continued focus on working capital improvement; group inventory was down £11.9m year-on-year
· Net debt at £81.8m was £6.0m down year-on-year. Net Debt to Underlying EBITDA 0.8 times (FY18: 0.8 times)
· Proposed final dividend payment of 12.39 pence, which takes the full-year ordinary dividend to 18.57 pence, up 3.0% year-on-year
https://www.investegate.co.uk/halfords- ... 00136229Z/