Halfords Regulatory News (HFD)

8 January 2015

Halfords announces Matt Davies to step down as CEO

Halfords Group plc ("Halfords") announces that Matt Davies, Chief Executive Officer (CEO), has resigned to take up the position of UK and ROI CEO at Tesco plc. Matt will remain as CEO of Halfords until the end of May 2015, supported by Halfords' well-established management team.

The Board has commenced a process to appoint his successor.

Trading for the 13 weeks ended 26 December 2014 continued to be strong and was in line with management's expectations. As originally planned, a full trading update for the 15 weeks to 9 January 2015 will be provided on 21 January 2015.

Commenting on behalf of the Board, Dennis Millard said: "We would like to thank Matt for his outstanding contribution to the business. Our Getting Into Gear Strategy is well underway and we have set a clear direction, built significant momentum across the organisation and are making good progress. Halfords is a strong business with leading positions in a number of large and attractive retail and service markets, led by an excellent and well established management team."

Matt Davies said: "My decision to leave has been very difficult. I have really enjoyed my time at Halfords, working with a great team of people across the business, helping to create and deliver a clear service-focused strategy. I am fully committed to driving the business over the next few months before I depart, as we continue to implement the Getting Into Gear Strategy."

Enquiries:

Notes to Editors 

Summary of Matt Davies' remuneration arrangements on exit

Following his resignation, subject to his continued employment, Matt will receive his normal salary and associated benefits until his leaving date. 

Matt's long term incentive arrangements including his LTIPs, Co-Invest and SAYE schemes will lapse. 

In accordance with the Annual Bonus Scheme rules:

· In regard to his 2013 and 2014 Annual Bonus Deferred Share Awards, Matt will be entitled to exercise the option to receive 72,350 of shares within 6 months of his leaving date;

· Matt will not be eligible to receive any Annual Bonus relating to the financial year ended 3 April 2015.

About Halfords

www.halfords.com

www.halfordscompany.com

www.halfordsautocentres.com

Halfords is the UK's leading retailer of automotive, cycling and leisure products and, through Halfords Autocentres, also one of the UK's leading independent car servicing and repair operators. Halfords customers shop at 466 stores in the UK and Republic of Ireland, including a Halfords "Cycle Republic" shop in Central London, and at halfords.com for pick-up at their local store or direct home delivery. Halfords Autocentres operates from 301 sites nationally and offers motorists dealership-quality MOTs, repairs and car servicing at affordable prices.

The Halfords Group strategy is based on three pillars:

· Supporting Drivers Of Every Car

· Inspiring Cyclists Of Every Age

· Equipping Families For Their Leisure Time

The Getting Into Gear strategy for the Retail business is based on executing in five key areas in order to deliver a significantly-enhanced customer experience:

· Service Revolution

· The H Factor

· Stores Fit to Shop

· 21st Century Infrastructure

· Click with the Digital Future

Halfords employs approximately 11,000 colleagues and sells around 9,000 product lines in store, increasing to around 160,000 Retail products online. The Retail offering encompasses significant ranges in car parts, cycling products, in-car technology, child seats, roof boxes and camping equipment. Halfords' own cycling brands include Apollo, Carrera, Boardman and 13 cycles, augmented by a range of other brands of cycles and accessories, including Kona, Mongoose, Raleigh and Pinarello. In Auto, the Halfords Essentials and Halfords Advanced ranges are sold alongside brands such as Karcher, General Electric, Bosch, Garmin and TomTom. In Travel Solutions, Halfords sells a premium range of equipment including camping brands such as CampinGaz and Outwell. Halfords offers customers expert advice and a fitting service called 'wefit' for car parts, child seats, satellite navigation and in-car entertainment systems, and a 'werepair' service for cycles.