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For a mass market operator Evans are streets ahead of Halfords. Bikes are now relatively small beer for Halfords but a big chunk of retail costs and footprint. My biggest issue with Halfords on bikes is that it has been very clear for a 3-4 years that they are doing a bad job and they haven't done anything to address it. Go check out their instore approach to bikes. They have assumed that a better website would reduce costs and drive sales. Their website is actually now pretty dated and pretty clunky.
Slipperman55, you lost all credibility when you described Evans a good bike retailer!
My post from 29/11. Hard to be optimistic on this one.
Institutions really don't like restatements. £10.6m revision is not insignificant. Also note the delay in releasing accounts which suggests some tooing and frooing with auditors. If you go into a Halfords store and look at what they are doing with bikes and then compare with a good bike retailer (Evans et al) it is very obvious why they are failing in this sector. They are dire. Their retail footprint dedicates so much space to an area where they are performing badly. I'm a big fan and customer of their auto centers. They haven't updated their advice on labour recruitment challenges so assume this is still a problem. Investors will look at this and wonder where they can increase margins. They can't rely on investors stumping up cash to buy market share when margins are looking so thin.
What was the recent bid speculation price? need to knock 1/3 off that then after todays update.
I know this business, so I couldn’t resist the drop this morning and took a fair chunk.
Over sold big time
Just makes it more appealing for a take over target
Fforest, I agree the drop is overdone for a couple of reasons , the warm wet winter is a one off rather than a structural problem with the business and it is likely that they have set the range low so as to ensure a 'beat' when actual results are out.
Never good news to have a profit warning but it's still going to make a profit, 25% drop and SP at £1.50, well over done. time to buy for me and have done so, back to £1.65 for a start.
25000 AT sell spotted
SP has now bounced off the bottom and lots of buys in coming
Are you sure its still EBIT positive currently?
25th Jan said EBIT £48m - £53m, after 3 quarters £36m YTD. Now expecting full year year to be £35m - £40m.
So that indicates at worse Q4 to be ebit neutral or small loss, assuming equal four periods. If christmas is the strongest period, then Q4 could be very ebit negative.
Need some positive news for Q1 2025 and onwards before this starts recovering
So much for all the broker buy recommendations....unless they feel a takeover is inevitable.
Can't trust the company to predict outcome ahead of time. confidence is gone. so need to factor that in.
125-136p area might be where this settles.
Well, when this bottoms out, I will be piling in.
Its the future that is important not the past and present.. They could not give any clarity on this, so this will drop and discount for the unceternity.. so PE at 11x, at earnings of £26m (after tax) for FY25, 283m marcket cap is sensible (for UK markets, which are always looking bearish for no good reason!!)
Hold your noses folks
Dipped in and out of this share a few times.
180 plus was too much
150 is fair price
140 AND IM IN
Halfords IS profitable, ok its going to miss targets, BUT 35MILL ?
I've got plenty companies in my portfolio that lost WAY more then that last year.
A profit is a PROFIT
GOOD risk / reward IMO - DYOR
Upside here only 175p so 20p from where sp is right now. so not much upside. could see a bounce up to 167p. but first a drop to 130s possible?
A takeover bid will definitely come in now , they will see todays drop as a bargain takeover bid
I'm in at 130p, no rush.....
It’s worth a punt at 130, but no higher.
Considering the positive sentiment around the Avayler software, maybe they need some of those employess looking at their internal finance reporting. They had over 3 weeks of January data when they gave their last T/U!
Time to buy more and top up
Well, that’s painful to watch.
Even for us who aren’t invested, all the best LTHs xxx
Key issue , is wet weather and warm winter a one off? I think so so sp will recover from the 150s over next few days imo. We shall see.