1. During the year the Company received a dividend in-specie, being a receivable due from another group company, which is not expected to be settled in the near future. As a result the value of the Company's investment in the IreCo 1 company (wound up during the year) fell below the amount at which it was stated in the Company's accounting records. Schedule 1 to the Companies Act 2006, The Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008 No. 410) requires that the investment be written down accordingly and that the amount be charged as a loss in the Company's profit and loss account. However, the Directors consider that, as there has been no overall loss to the Company, it would fail to give a true and fair view to charge that diminution to the Company's profit and loss account for the year and the cost of the investment of £280.3m should instead be re-allocated to the carrying amount of the Company's receivable, so as to recognise in the Company's individual balance sheet the effective cost to the company of the receivable. Given that the receivable has a fair value of £328.3m, the company has recognised an unrealised gain of £48.0m through the Statement of Recognised Gains and Losses ('STRGL'). The effect of this departure is to increase the holding company's total recognised gains for the financial year and the carrying amount of the receivable in the holding company's balance sheet by £280.3m. The Group financial statements are not affected by this transfer.

During FY14 the Group began an exercise in order to restructure the underlying companies of the Group. During the year this exercise led to a distribution in-specie of discounted loan notes from Halfords Ireco 1 Limited to Halfords Group plc. The following subsidiaries have now been wound up: Halfords Holdings (Jersey) 1 Limited; Halfords Holdings (Jersey) 2 Limited; Halfords Holdings (Jersey) 3 Limited; Halfords Finco (Jersey) Limited; The Halfords Group plc Discretionary Trust; The Halfords Payment Services Limited Discretionary Trust; Halfords Ireco 1 Limited; and Halfords Ireco 2 Limited.

The investments represent shares in the following subsidiary undertakings as at 3 April 2015 and the fair value of share based compensation plans that are awarded to employees of the Company's subsidiary undertakings. The Company has taken advantage of Section 410(2) of the Companies Act 2006 to list only its principal subsidiary and associated undertakings at April 2015. All of these are wholly owned by the Company or its subsidiary undertakings, registered in England and Wales, and operate predominantly in the United Kingdom unless otherwise stated.

* Registered in England and Wales.

In the opinion of the Directors the value of the investments in the subsidiary undertakings is not less than the amount shown above.

Principal Subsidiary Undertakings

The principal subsidiary undertakings of the Company at 3 April 2015 are as follows:

* Shares held indirectly through subsidiary undertakings
**Wholly owned indirectly through subsidiary undertakings

All subsidiary undertakings are incorporated in Great Britain and registered in England and Wales. The only subsidiaries to trade during the year were Halfords Limited and Halfords Autocentres Limited.