REVENUES at car and bike retailer Halfords have climbed despite a drop in like-for-like, the company reports today.
In a half-yearly report for the six months ending October 1, 2010, the Redditch-based firm says its revenues have increased by 7.3% to £456.3m while like-for-like sales have fallen by 4.9%.
Operating profit is up by 11.5% to £69.1m which represents 15.1% of sales compared with 14.6% in 2009.
Pre-tax profit is up by 12.8% to £68.7m while basic earnings per share have climbed 17% to 24.1p. Net debt has risen slightly by £3.8m to £109.8m.
The says it has reduced annual costs by £8m following what it called the “successful delivery of infrastructure initiatives” and it has also refinanced the group’s maturing debt arrangements.
Chief executive David Wild said: “This has been a period of considerable progress for the group. In addition to increasing profits, we have successfully completed a number of significant change initiatives.
“These include the reconfiguration of the group’s warehouse and distribution network, the remodelling of staffing structures and the closure of our central European operations.
“We are also pleased to have concluded the refinancing of the group’s debt arrangements on favourable terms.”
He added that the firm planned to open 15 new Autocentres and the entire network would be rebranded Halfords Autocentres by the end of the financial year.
Yorkshire Bank in Birmingham, along with four other banks, has agreed a £300m finance package with Halfords. The money will replace the existing credit facilities and provide funding for its working capital requirements and the development of the business. Yorkshire Bank has provided £50m as part of a ‘banking club’ that also includes RBS, Handelsbanken, Barclays and Bank of Ireland. Peter Corcoran, corporate area director Birmingham, headed a team which also included Steve Drury and Jamie Stuart. He said: “Halfords is a market-leading business with a strong and consistent financial performance. We are delighted to have contributed to the finance package.”
