Investors knocked almost a tenth of the value of the shares of Halford after the bike and the seller of the car warned its revenues are unlikely to grow this year.
The retailer plans to invest more in your hand of service and a more efficient use of customer data, adding that this would keep profits in the coming year. He came, as it turned out, 6PC fall in profit before tax to £67.1 m for the 12 months to 30 March, which it blamed on unfavourable exchange rates.
The news sent shares down Halford 10pcs in 348p in morning trade.
The company also announced the appointment of veteran boss of British Airways Keith Williams as the chair. This signifies that recent changes in the higher ranks of the company after Graham Stapleton was hired from Dixons Carphone as chief Executive officer earlier this year, chief financial officer johnny Mason showed that he was moving in the opposite direction to become the boss of Finance electricity retailer.
Mr. Stapleton, who began work in January and will be set out in a new strategy in September, said Halford you need to pay more attention to their services such as bike repair and installation of automotive bulbs and wiper blades to remain competitive, as “customers are becoming more demanding and new participants continue to disrupt the market.”
Graham Stapleton joined Halford from Dixon’s Carphone in January
The total revenues grew by 3.7 PC in the period to £1.1 billion due to higher sales of “travel solutions”, such as the roof box and camping equipment and car maintenance products. However, the car “improvements” such as satellite navigation system went in the opposite direction, despite the growth of sales of cameras monitoring.
Services related revenues that include charges for installation and repair, as well as of the parts themselves, has risen in the past year 14.2 PC.
Sales Cycling equipment rose by 2.9 PC on a like basis, higher prices more than made up for the drop in the number of bicycles sold, but Halford warned that do not expect that prices will rise again this year.
Halfods who buys a lot of products it sells abroad, on appeal from the falling value of the pound sterling in recent years, he said, has added about £ 25 million of additional costs during the year. Although this effect is not expected to repeat it warned that its hedging strategy, which is designed to protect against fluctuations in the value of the currency – all the same constrained profits.
Halford’s share price 1-year
Mr. Williams, who was CEO of BA for four years, until 2015, will take the baton from outgoing Chairman Dennis Millard in July.
The appointment process was led by David Adams, former Chairman of Conviviality, which is the senior independent Director in by halfords. He said that Mr. Williams was “one of the most respected business leaders in the UK with extensive experience and expertise in retail and other areas.”
Nicholas Hatton from Hargreaves lansdown Smoking said that investors were taken by surprise by the plans of Mr. Stapleton to increase spending“, but in the long term we still think that’s the right approach.”
He added: “halfords has to compete with online rivals, if it is a success, and the group’s ability to deliver face to face advice and service that sets it apart”.