NET debt has taken a significant fall at Redditch-based bike, leisure and car parts retailer Halfords as group revenues show a steady climb.
In its preliminary results for the year to April 1, 2011, net debt has dropped year-on-year by a third from £155.5m to £103.2m while group revenues climbed 4.6% from £831.6m to £869.7m.
Underlying operating profit has risen 7% to £128.1m and pre-tax profit has climbed from £117.1m to £125.6m.
Share dividends have also increased from 20p to 22p and a £75m share buyback programme is currently underway with around £20.7m of cash returned to date, the plc said today.
The statement said there had been resilient performance in car maintenance across the year with “strong growth” in wefit jobs, posting a record 1.91m jobs during year.
It added that 9% of all retail sales were now transacted via its website.
Last week, Halfords revealed the collapse of the Focus DIY group was set to cost it £7.5m because of a long-standing guarantee dating back to the 1980s relating to their parent company’s property portfolio.
Chief executive David Wild said the tough trading environment was likely to continue, adding that the group had made significant operational progress through reconfiguration of warehouses and distribution network and remodelling staffing structures.
“Although these initiatives were achieved at some impact on sales during the transition period, they have enhanced customer service, reduced costs and provide a strong platform for our next phase of growth,” he added.
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