Halfords Share Discussion Threads

[argylerich] 21/2/2024 17:48

Betaville bid rumours, I think they were the same source as last time.

[argylerich] 21/2/2024 16:05

something's leaked from the teapot...

[yf23_1] 21/2/2024 15:50

somethings brewing...

[schofi2] 25/1/2024 16:42

Must be really busy :-)

[my retirement fund] 25/1/2024 12:17

Called halfords to arrange an aircon check and regas, but no answer on their automated phone system, so I hung up and booked it into F1 Auto centres instead.

[schofi2] 25/1/2024 11:12

Predicted pretax profits putting this at a p/e around 7.5. looking cheap now.

[schofi2] 25/1/2024 11:09

(Alliance News) - Halfords Group PLC on Thursday backed its full-year profit outlook despite a weaker third quarter performance.

The Worcestershire-based motoring and cycling products retailer said revenue in the three months to

December 29 grew 1.6% from a year ago, and by 2.0% on a like-for-like basis.

This consisted of revenue growth of 4.1% for its Autocentres business, and a 0.7% uptick in Motoring. However, Retail revenue dipped 0.1%, while Cycling dropped 1.2%. This was driven by "weaker spend in discretionary areas," Halfords said.

The firm added that whilst October and November sales were strong, sales in December were "much weaker", driven by a "combination of mild and wet weather impacting demand for winter products and footfall into stores, and customers balancing difficult spending decisions in the lead up to Christmas."

Despite the challenging environment, Halfords affirmed it continues to deliver revenue growth.

Looking ahead, the retailer said it expects pretax profit to fall in line with its previously stated target of between GBP48 million and GBP53 million for the year ending March 31. In financial 2023, the firm posted pretax profit of GBP43.5 million.

Chief Executive Officer Graham Stapleton said: "We are continuing to grow share across all of our markets and are confident that the business is very well-placed to drive significant profit growth once those markets recover. Trading in Q4 has begun strongly and we remain focused on everything that we can control, with a number of initiatives underway to achieve further efficiencies within the business, as well as investing in areas where we see real opportunities for future growth."

[kendonagasaki] 18/12/2023 18:55

Probably buying as they know a bid is coming again for HFD in the new year ahead?If HFD have a poor Xmas trading results their previous suitor May make a lesser offer then they did in October.Either way, Mr Stapleton is looking for his 5 year exit?Merry Christmas all!

[yump] 18/12/2023 18:17

Halfords had a duff year in cycling.

However, if they get their act together, there is probably a substantial market opportunity arising from the demise of the largest cycling retailers: Wiggle and Chain Reaction Cycles.

(That merger should never have got past monopolies commission but that's another toothless quango)

[wynmck] 06/12/2023 14:28

another Dir Buy today £55,800 at 186p

[wynmck] 06/12/2023 14:27

2 Dir.Buys now £31k and £55,800

[dudishes] 03/12/2023 15:07

Tks W.

Will monitor now.

cheers

[tonybaloni] 01/12/2023 09:39

Very constructive Mr Nackersacki

[21ant] 30/11/2023 17:23

Totally agree - yes the Divi is also in the equation so gives more support to the uncertainty.
Today was ok so lets see if it can hold or even rise a bit tomorrow. If it's going to pull back it will do it pretty soon. I'd look at topping up if it dropped enough but obviously I'd rather it continued upwards now.

[argylerich] 30/11/2023 15:23

I think you're right 21ant, anything below £2 is lower risk. I'm playing a similar book, originally holding 10k @197, topping 4k @ 228 and now buying them back @185.

Happy to play that for a while to see where things go and pick up a few divis along the way.

[21ant] 30/11/2023 12:34

Thanks Maximus57 and ArgyleRich
Well I decided to dip my toe in for some today. This will inevitably be higher than this at some point and I'd be happy for 10% tbh. The business is robust and even the odd rumour of a takeover could bump it up quickly. I'm prepared it may go lower in the short term but I'm not about trying to call a bottom. Anything below £2 should be a safe bet. Just my opinion.

[blueball] 30/11/2023 08:29

Hurry 30% off Sale.

[waldron] 30/11/2023 07:00

Why Halfords shares just crashed 20%

Having recently traded at a one-year high, shares in this bikes-to-car parts retailer have plunged in spectacular fashion. City writer Graeme Evans explains what's gone wrong and what the analysts think.

29th November 2023 15:44

by Graeme Evans from interactive investor



HFD

19.07%

A setback for Halfords Group HFD due to tougher conditions in cycling and tyre markets today failed to dent City optimism that the retail and car servicing business is on the right track.

The shares skidded 43.2p to 185.4p, wiping out this month’s strong rebound as interim results tightened full-year guidance towards the lower end of the previous range.

Invest with ii: Top UK Shares | Free Regular Investing | Open an investment Account

Broker Peel Hunt told clients that the share price weakness should be used as an opportunity as it reiterated a target price of 275p. It said: “In our view, management is doing pretty much everything right to control the controllables and the market will turn in time.”

Counterparts at Singer Capital had a similar message after seeing Halfords grow market share across its four segments of retail motoring, cycling, consumer tyres and car servicing.

It also said that the shift to needs-driven services is gaining traction, acting as a buffer to the current pressure on discretionary spending.

While half-year profits rose in line with expectations by 15.8% to £21.3 million and the dividend for payment on 19 January is unchanged at 3p, the outlook has been clouded by weaker big ticket spending and subdued growth in the consumer tyre market.

Singer said: “This should prove to be a bump in the road as real incomes recover, fuel prices reduce and consumer confidence thaws. A cold snap is also imminent. For this reason we are not changing our target price and would buy on weakness.”

Halfords now sees profits for the financial year in the range of £48 million to £53 million, equating to a 5%-6% downgrade on the City consensus. However, the company remains confident in its mid-term plan for £90-£110 million profits as long as conditions stabilise.


Chief executive Graham Stapleton is particularly encouraged by the strong performance of Autocentres, where significantly improved returns have prompted the company to accelerate capital investment in the garage services operating model.

The group is on track to deliver £30 million of cost savings in this financial year, although the City expects April 2024’s National Living Wage will add £5 million to future assumptions.

Investec Securities cut its 2024/25 forecast by 20% today but has maintained its “buy” recommendation with a lower price target of 235p.

The broker said management had a credible long-term vision to become a one-stop-shop for all vehicle ownership, having set out its plans at a capital markets day in April.

Investec added that delivery of these targets would drive higher profitability, implying a sustainable double-digit earnings per share growth story.

It said: “Neither this longer-term growth opportunity nor the strength of its cash generation is reflected in current valuation, in our view, with the market more focused on the short-term weak macro backdrop and need for better visibility on a market recovery.”

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website.

[waldron] 30/11/2023 06:48

Upcoming events on Halfords Group plc


12/June/2024 Q4 2024 Earnings Release (Projected)

[waldron] 30/11/2023 06:39

Mean consensus
OUTPERFORM

Number of Analysts
6

Last Close Price
1.850GBP

Average target price
2.142GBP
Spread / Average Target
+15.77%

High Price Target
2.750GBP
Spread / Highest target
+48.65%

Low Price Target
1.500GBP
Spread / Lowest Target
-18.92%

[waldron] 30/11/2023 06:35

today and tomorrow should tell all as to whether it will continue to trend down








Summary

The company has strong fundamentals.

More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

The company presents an interesting fundamental situation from a short-term investment perspective.

Strengths

The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.48 for the 2024 fiscal year.

The company's share price in relation to its net book value makes it look relatively cheap.

The company is one of the best yield companies with high dividend expectations.

Over the last twelve months, the sales forecast has been frequently revised upwards.

Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

Over the past twelve months, analysts' opinions have been strongly revised upwards.

Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

Weaknesses

The company sustains low margins.

The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.




ABOVE SUBJECT TO CHANGE ME THINKS

[fenners66] 29/11/2023 13:58

Also says the "audit" so called as GRNI are one of the first checks - was not worth the time of day.
Heads should be rolling there too.

[fuji99] 29/11/2023 13:51

"... which decrease the stated profit before tax by GBP10.6m" - Anybody responsible for such a blatant stupidity must be sacked on the spot. It's not pennies, it's £10.6 million of profit !!!! Amazing how companies still have amateurs to look after their accounts ! Was it initially a lie just corrected now ... just in case the FSA & market realise in the future ? I cannot trust such accountants at all. It happened with WAND, playing with numbers lately. Their share price lost an arm and a leg and plus any trust.