Halfords Share Discussion Threads

[adeg] 18/11/2020 15:20

The none payment of the dividend is important. Companies are run for the benefit of their shareholders and while a 6p interim dividend is immaterial when the share price swings 40p in a day, so is the CEOs annual salary but I don't see that getting stopped.

Strong, stable companies pay a regular dividend, preferably one that grows over time.

[peddlers] 18/11/2020 13:41

Hi all,

I have taken a position on HFD after reviewing the results today.

Good Luck

Ped

[cousin jack] 18/11/2020 13:26

Market reaction to decent results mirrors what we have seen with a lot of shares recently. A good run up to results but flat or drifting afterwards. Sell pre results then trade perhaps best strategy at the moment.

[castleford tiger] 18/11/2020 13:25

never seen a 20% swing like this on a big company

[milanr] 18/11/2020 13:14

After such a results and to be in red, unbelievable

[castleford tiger] 18/11/2020 12:40

price now 30p below days high.

that's a huge % swing

[poikka] 18/11/2020 10:39

Well of course they're taking advantage of the "free benefits", who wouldn't, but that's going towards building-up a debt-free business that has every opportunity to grow like stink, which will be to our advantage and one day the divis and tax take will go back into the economy.

Here's the relevant bit:

"Business rates relief and furlough income totalled GBP24.5m, but these
benefits were partially offset by increased costs of operating under Covid-19 which, to date, amount to GBP11.4m in our retail business. This includes PPE, additional store payroll, digital fulfilment costs and over GBP2.4m of initiatives launched to support colleagues including a Frontline Colleague Support Fund and the Here to Help Fund."

[castleford tiger] 18/11/2020 10:05

price is all over the place.
was 284 now below 260

[greco600] 18/11/2020 09:25

I was thinking this, they aren't the only company many out there are making loads of money and have taken advantage of the furlough pay. Smurfit kappa they certainly have

[spob] 18/11/2020 09:22

The reason for no divi is because they want to wait until everyone has forgotten about the free benefits they have received from the government.

[poikka] 18/11/2020 09:21

This is a go-go stock now. Sorry about your loss of income, me too, but you can always sell some shares. At the Finals, they should be in a better position to determine whether it's wise to pay a divi. In the meantime, they're investing in growth, and that suits me.

[adeg] 18/11/2020 09:02

The dividend is important as a symbol. They have to look after their shareholders and continue to pay a proportion of the profit they make for us, the owners.

Will the management team stop their pay rises or bonuses for this year? No, so why have they stopped the dividend? I'm not asking for an increase in the payment, just hold it as per last year.

[castleford tiger] 18/11/2020 08:52

could not understand that open. Had my broker been quicker I would have bought everything at 237

[wetpantz] 18/11/2020 08:43

Results haven't shot the lights out, sold the rest of my position. HFD was handed a huge pandemic opportunity but failed to make the most of it. The stores I've visited are largely empty and website is pretty poor and buggy compared to other retailers. There's only so many bikes the UK will buy and the MoT backlog won't last forever. Push into electric cars not great for HFD either. Still high debt and liabilities (leases)

[bigbigdave] 18/11/2020 08:40

Wonder how many stops were hit in the first 10 minutes?!!

[castleford tiger] 18/11/2020 08:40

back in average 240p
bought 15k some below some just above.
tiger

[shanklin] 18/11/2020 08:37

adeg, They are thriving and have kept over £24m of Government money. Management would need to be very stupid indeed to pay a dividend at this point

[amt] 18/11/2020 08:26

Not worried about no dividend. I prefer capital gains. They need to build a very strong balance sheet and invest in a very bright future.
If H2 equals H1 then EPS would be 40 or 50p so pe ratio is only 5 or 6. That seems ridiculously low for a strongly growing company with opportunitirs ahead. The market has been slow to recognise this do patience required.Had to wait along time for Tandem shares to reflect true value but eventually it took off the year after weathering Covid Well. Maybe that will happen here.

[adeg] 18/11/2020 08:11

But why no dividend? EPS up and Cash/borrowings has improved significantly. There is no reason why they couldn't have paid an interim dividend.

[amrishbhim] 18/11/2020 07:39

Luck doesn't come into this

[amrishbhim] 18/11/2020 07:39

Just be pleased with the results than questioning how it got here, many other businesses are suffering and closing down, at least this one has done something and kept its business open and staff are still with the group, I see a bright many more months of trading upto summer 2021.

[indonews] 18/11/2020 07:23

Yep agree, great sales by luck and real lack of any ability to grasp the opportunity, im holding on till 2.85 to £3 and then selling out, my average buy price is around £1.20 so im on a massive gain - only wish I had the nerve to buy more in the spring/summer, 2021/22 will be very interesting i think cycle sales could potentially dive hugely- although electric scooters may boom- though these have a huge level of returns and are ultra low margin, just look at the amount of electric scooter returns john pye were selling last year- and they must have come from a big retailer such as halfords

[shanklin] 18/11/2020 07:22

"Business rates relief and furlough income totalled GBP24.5m, but these
benefits were partially offset by increased costs of operating under Covid-19 which, to date, amount to GBP11.4m in our retail business."

[ayl30] 18/11/2020 07:22

Reads very well to me, doing everything right and leading in growth market of ranges electric based productWell set up for 2021

[shanklin] 18/11/2020 07:20

So they are doing very well operationally AND are a HUGE beneficiary of Government payments which it looks like they are keeping.