Non-recurring charge relating to lease guarantees
3 June 2011
Halfords Group plc
Non-recurring charge relating to lease guarantees
Halfords Group plc, the UK's leading retailer of automotive and leisure products and leading operator in garage servicing and auto repair, announces that;
Following the decision by Focus DIY to enter into administration and the subsequent announcement of the closure of stores, Halfords will recognise a non-recurring expense of £7.5m in the year ended 1 April 2011. This non-recurring expense relates to the creation of a provision for the potential liabilities arising from guarantees provided by Halfords prior to July 1989. An estimate of the potential liability relating to these guarantees was previously disclosed as a contingent liability. The guarantees were provided to landlords of properties leased by Payless DIY (now part of Focus DIY) when both Halfords and Payless DIY were under the ownership of the Ward White Group. It is anticipated that the cash outflow relating to the guarantees will be incurred over the next three years. The Group is taking mitigating actions to reduce these liabilities.
Enquiries:
Analysts:
Halfords Group plc
Andrew Findlay, Finance Director
Louise Richardson, Investor Relations +44 (0) 1527 513113
Media:
Maitland
Neil Bennett +44 (0) 207 379 5151
Brian Hudspith +44 (0) 207 379 5151
Forthcoming News Flow
Halfords Group will issue its Preliminary Results on 9 June. A presentation for analysts and investors will be held at 9.30 a.m. at The City Presentation Centre, 4 Chiswell Street, London EC1Y 4UP.
Notes to Editors:
www.halfords.co.uk
www.nationwideautocentres.co.uk
Halfords Group plc
The Group is the UK's leading retailer of automotive, leisure and cycling products and through Halfords Autocentres also the UK's leading independent car servicing and repair operator.
Halfords employs approximately 11,000 staff and sells over 12,000 different product lines with significant ranges in car parts, cycles, in-car technology, child seats, roof boxes, outdoor leisure and camping equipment. Halfords own brands include the in-store Bikehut department, for cycles and cycling accessories, Apollo and Carrera cycles and exclusive UK distribution rights of the premium ranged Boardman cycles and accessories. In outdoor leisure, we sell a premium range of camping equipment, branded URBAN Escape. Halfords offers customers expert advice and a fitting service called "wefit" for car parts, child seats, satellite navigation and in-car entertainment systems, and a "werepair" service for cycles.
Halfords customers shop at 466 stores in the UK and Republic of Ireland and at halfords.com for pick-up at their local store or direct home delivery. Halfords Autocentres operates from 241 sites nationally and offers motorists dealership quality MOTs, repairs and car servicing at affordable prices.
Cautionary Statement
This report contains certain forward-looking statements with respect to the financial condition, results of operations, and businesses of Halfords Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Halfords Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.
This information is provided by RNS
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund