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I did ec like you I can see this over £4 by June, not sure about a dividend this time they may choose to pay back debt or even buy other garages either way this is a hold all day long
How’s pmo going for you carrot did you get out ? Halfords will take time , but I’m sure your right it will fly soon , would love to see a dividend for half year but I think graham may be focused on year end and off he goes ! On the plus side it’s one business Keith (ops director) can’t **** up!
I take your point, and your friend is probably correct for the small independents repair is the way forward I would imagine, I just feel Halfords is much bigger than this and as such the effects of a drop in repairs have very little impact. Especially as I say it happens every year so they have other irons in the fire.
With all due respect to the article, the mechanic set up in March ! Halfords has been going for over 100 years. The drop off is nothing to do with the government vouchers it’s a yearly trade pattern. People use their bikes more in summer, especially children and families through the summer holidays. In sept the demand falls, it happens every year just like Christmas and this year is no different! The difference this year is more people are buying new ones!! Halfords demand picks up on the motoring side through winter, dark nights (bulbs) rain (wipers) etc , it’s a seasonal balance as I say done for over 100 years.
I would imagine it’s hard to give an over positive result when you are taking money from the government, not paying a dividend, asking for rent reductions and more favourable buying terms, shutting shops and cutting staff. That said come year end all this will show exactly how well the company has done , investors with a longer term view will be rewarded come may imo
With just under 2 weeks to the update I can see a decent rise before the results but I think it might come next week. Graham has to be more positive in his next update or he will have a very tough AGM to attend, I’m positive the figures will be good and I understand some degree of caution however the forecasts last time were a joke.
Is that what they are doing? Looks like a geographical split to me, hopping people will travel to other local shops, bad move in my opinion why shut a profitable store in the hope that other stores will increase sales. In a service lead retailer this will hit bottom line. 93 shops shut since March nearly 20% of retail. I get cycle republic it was a loss making decision but all other store make a profit big or small. Yes Halfords have to plan for after Covid but this is another negative response from the board, they should be taking advantage of demand not planning for the worst ! Poor management
The news articles don’t help either showing a profit of 19m without explaining the full story. I Do think this is oversold, but unless done intensionally halfords need to be fat more up beat in their announcements, everyone he has done has always been very cautious he’s actually only marginally better than macdonnald, who’s ans to everything was bad weather!!
Agreed, it’s a bumpy road ahead but fundamentally the business is a solid one with loads of potential in the next few years, great first 13 weeks considering the climate, it was really only a collect and repair offer you couldn’t enter the shop! And availability issues started in May. 100k bikes in the next few weeks will set up nicely for summer trading. Right decision to hold off the divi, put more money into staffing to deliver those high margin services. I’ve invested in halfords for a long time, Matt Davis the CEO took this approach 7 years ago and it paid off massively. They have the chance to make some real progress this year. Good luck all