HFD4 Oct 2012 10:07
On the corporate front, Halfords, the bicycles and car parts seller, issues an interim management statement covering the second quarter of its financial year, less than three months after the abrupt departure of Chief Executive Officer (CEO) David Wild.
Peel Hunt expects the retailer will have received a boost from a Briton winning the Tour de France and from Britain's success on two-wheels in the Olympics.
The consensus is for first half like-for-like retail sales to be down 5.7% year-on-year but Peel Hunt is a bit more pessimistic, going for a 6.0% decline. The broker reckons half-year profit before tax will £36.4m, slightly ahedd of the market consensus forecast of £35.8m.
"Management plans to invest in marketing and staffing in order to drive H2 [second half] fitting revenues and gross margin. Halfords remains overspaced and in terms of both store numbers and footprint, with only 130 lease expiries over the next 5 years leaving limited flexibility," Peel Hunt opined.
"The board remains committed to the interim DPS [dividend per share] of 8p, although we see full year DPS cuts likely," Peel Hunt said.
Just a broker view then,I took the profit reinvested in first group second tranche after yesterday's buy.