
DJ Halfords Group PLC: Annual Financial Report
Halfords Group PLC (HFD) Halfords Group PLC: Annual Financial Report 29-Jul-2021 / 07:10 GMT/BST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- Halfords Group plc Annual Report and Accounts for period ended 2 April 2021 including the Notice of Annual General Meeting ("AGM") - convened for 8 September 2021 The Company announces that the Annual Report and Accounts for the period ended 2 April 2021 and Notice of Annual General meeting of the Company, have been posted or otherwise made available to shareholders and published on its website www.halfordscompany.com. The Company's 2021 AGM will be held at Halfords Group plc, Support Centre, Icknield Street Drive, Washford West, Redditch, B98 0DE on Wednesday 8 September commencing at 3:00pm. As detailed in the Notice of AGM, in light of the ongoing coronavirus pandemic and current government guidance, it is expected that the 2021 AGM will be held in a streamlined manner similar to last year. The health and well-being of our colleagues, shareholders and the wider community in which the Company operates is, and will continue to be, of paramount importance to us. As the social distancing requirements have now been lifted in England, the Board is optimistic that shareholders will be able to attend the AGM in person. However due to the uncertainty with regards to the coronavirus pandemic there is still a possibility that the UK Government's restrictions and/or guidance on indoor public gatherings are reinstated prior to the AGM, because of this the Board recommends to shareholders that they cast their votes through the use of a proxy. Details of how to do this can be found in the Notice of AGM. The Board is committed to ensuring that shareholders can exercise their right to ask questions. Shareholders will be able to submit questions to the Directors in advance of the AGM via email to the Company Secretary (tim.ogorman@halfords.co.uk). Written answers to all questions received will be sent directly to shareholders by email and answers to frequently asked questions will, to the fullest extent practicable, be published on the Company's website ahead of the meeting or, to the extent that has not been possible, will be addressed at the meeting itself. In accordance with Listing Rule 9.6.1, a copy of the Annual Report and Accounts and the Notice of Annual General Meeting of the Company have been uploaded to the National Storage Mechanism and will be available for viewing shortly at https://data.fca.org.uk/#/nsm/nationalstoragemechanism Tim O'Gorman Company Secretary Halfords Group plc The Appendix to this announcement is a supplement to our preliminary statement of Financial Results made on 17 June 2021 (the "Final Results Announcement"). It contains the information required pursuant to Disclosure Guidance and Transparency Rule 6.3.5 that is in addition to the information communicated in the Final Results Announcement and should be read together with the Final Results Announcement. This information is not a substitute for reading the full Annual Report and Accounts for the year ended 2 April 2021. Appendix The Chief Financial Officer's Report in the preliminary statement of the Final Results Announcement issued on 17 June 2021 includes a commentary on the principal commercial and financial risks and uncertainties to achieving the Group's objectives. Further details of other principal risks and uncertainties relating to the Halfords Group are set out on pages 66 to 72 of the 2021 Annual Report and Accounts. Specific financial risks (e.g. credit risk, foreign currency) are detailed in note 22 to the Financial Statements on pages 181 to 185 of the 2021 Annual Report and Accounts. The following is extracted in full and unedited form from the 2021 Annual Report and Accounts. Our Principal Risks and Uncertainties Capability and Capacity to Effect Change If we do not have sufficient capacity and capability (in terms of our people, processes, and systems) to successfully implement the changes necessary across the business, we will not realise the expected benefits of our strategy and the business will not be sustainable. Current Mitigation Focus in 2022 * Continue to align our Transformation Plan with the key objectives of our * The appointment of a Transformation Director and a strengthened team with corporate strategy emphasis on project management enabled progress to be maintained during a challenging period for capital investment. The successful acquisition of The Universal Tyre Company (Deptford) Limited ("Universal") in March 2021 demonstrated our intent and ability to grow our services business. * Closely monitor progress on individual programmes, realigning resources where necessary. * The continued advancement of our change programme is managed through a Transformation Board, providing the necessary governance for delivery of the strategy. The Transformation Board ensures there is a robust approval process * Specifically, within the technology for each project, allocates resource and monitors progress. Project managers are and digital teams, address operating in place within the business model shortcomings to enable faster to whom projects can be assigned and this has been supplemented by specialist execution. resource to boost capability. In affecting change, Halfords is requiring all contributing colleagues to observe the principles of Responsible, Accountable, Consulted, and Informed ("RACI"). * Complete organisational design changes to align with the strategic focus of the business.
Stakeholder Support
If we fail to maintain stakeholder confidence in our strategy, they may withdraw their support.
Current Mitigation Focus in 2022 * Maintain progress on the delivery of our strategic * Throughout the year, we demonstrated progress in the execution of our strategy, objectives. building confidence in external and internal stakeholders. Our share price responded positively, Customer NPS improved, and our internal engagement scores remained high despite the disruption caused by COVID-19 * Address colleague engagement challenges through a regular cycle of survey and review * Engagement continued throughout the year with customers, investors, and colleagues, keeping them informed of progress against our strategic plans, changing customer propositions as well as the challenges presented by the pandemic * Proactive investor relations programme of events and communication.
Value Proposition
Customers are not persuaded by our value proposition and we lose market share to online retailers and discounters. Purely competing on price leads to a diminution of financial returns.
Current Mitigation Focus in 2022 * To differentiate ourselves in a competitive retail market, our vision is to consolidate Halfords as a super specialist in motoring and cycling. Our strategy emphasises the importance of creating value for the customer by * Launch of a Halfords Motoring loyalty delivering services alongside the sale of a product. Progress continued through programme, designed to reward loyal the development of new services and greater accessibility through the growth of customers and inspire a greater our Cycle-to-Work programme, financial products, and Halfords Mobile Expert proportion to shop across the Group. business. * Further investment in pricing of * Optimisation of our Group website with payment online functionality was motoring products to deliver greater further enhanced by investment in our fulfilment proposition and enablement of value for customers. cross-shop opportunities, aligned with more targeted promotions, designed to appeal to customers.
Brand Appeal and Market Share
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