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Halfords Group PLC Annual Report and Accounts for the period ended 3 April 2015

Notes to the Financial Statements

1. Operating SegmentsThe Group has two reportable segments, Retail and Car Servicing, which are the Group's strategic business units. Car Servicing became a reporting segment of the Group as a result of the acquisition of Nationwide Autocentres on 17 February 2010. The s…
2. Operating ExpensesFor the period53 weeks to3 April2015£m52 weeks to28 March2014£mSelling and distribution costs385.5359.1385.5359.1Administrative expenses, before non-recurring items73.267.3Non-recurring administrative expenses0.30.273.567.5459.0426.6
3. Operating ProfitFor the period53 weeks to3 April 2015£m52 weeks to28 March2014£mOperating profit is arrived at after charging/(crediting) the following expenses/(income) as categorised by nature:Operating lease rentals:— plant and machinery2.61.8— property rents91.6…
4. Staff CostsFor the period53 weeks to3 April 2015£m52 weeks to28 March2014£mThe aggregated remuneration of all employees including Directors comprised:Wages and salaries183.7173.0Social security costs12.911.6Equity settled share-based payment transactions (note …
5. Non-recurring ItemsFor the period53 weeks to3 April2015£m52 weeks to28 March2014£mNon-recurring operating expenses:Lease guarantee provision (a)(0.2)(0.2)Onerous lease provision (b)(0.2)—Impairment of Property, Plant and Equipment (c)0.70.4Non-recurring items before ta…
6. Finance Income and CostsRecognised in profit or loss for the period53 weeks to3 April2015£m52 weeks to28 March2014£mFinance costs:Bank borrowings(1.3)(1.3)Amortisation of issue costs on loans(0.6)(1.0)Commitment and guarantee fees(0.8)(1.1)Costs of forward foreign exchange …
7. TaxationFor the period53 weeks to3 April 2015£m52 weeks to28 March2014£mCurrent taxationUK corporation tax charge for the period20.920.1Adjustment in respect of prior periods(1.8)(0.7)19.119.4Deferred taxationOrigination and reversal of temporary differences…
8. DividendsFor the period53 weeks to3 April2015£m52 weeks to28 March2014£mEquity — ordinary sharesFinal for the 52 weeks to 28 March 2014 — paid 9.10p per share (2014: 9.10p)17.717.6Interim for the 53 weeks to 3 April 2015 — paid 5.50p per share (2014: 5.20p)10…
9. Earnings Per ShareBasic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period. The weighted average number of shares excludes shares held by an Employ…
10. Acquisition of SubsidiaryOn 4 June 2014 the Group acquired 100% of the issued share capital of Boardman Bikes Limited and Boardman International Limited for cash consideration of £14.7m (excluding transaction costs). The two Boardman companies retail cycles and cycle accesso…
11. Intangible AssetsBrandnames and trademarks£mCustomerrelationships£mFavourableleases£mComputersoftware£mGoodwill£mTotal£mCostAt 29 March 20131.114.92.315.5344.5378.3Additions———5.3—5.3Disposals———(1.9)—(1.9)At 28 March 20141.114.92.318.9344.5381.7Additions3.1——7.510.7…
12. Tangible AssetsLand andbuildings£mFixtures,fittingsandequipment£mPayments onaccount andassets incourse ofconstruction£mTotal£mCostAt 29 March 201359.2246.11.0306.3Additions4.519.41.225.1Disposals(0.7)(100.3)—(101.0)Reclassifications—0.7(0.7)—At 28 March 201463.0165…
13. Inventories2015£m2014£mFinished goods for resale149.3150.2Finished goods inventories include £22.4m (2014: £19.6m) of provisions to carry inventories at fair value less costs to sell where such value is lower than cost. The Group did not reverse any unutilised …
14. Trade and Other Receivables2015£m2014£mFalling due within one year:Trade receivables15.916.5Less: provision for impairment of receivables(0.4)(0.2)Trade receivables — net15.516.3Other receivables7.95.6Prepayments and accrued income32.430.955.852.8During the period the Group ch…
15. Cash and Cash Equivalents2015£m2014£mCash at bank and in hand22.45.3The Group's banking arrangements are subject to a netting facility whereby credit balances may be offset against the indebtedness of certain other Group companies.
16. BorrowingsCurrent2015£m2014£mUnsecured bank overdraft22.310.0Finance lease liabilities0.60.322.910.3Non-currentUnsecured bank loan and other borrowings150.784.0Finance lease liabilities10.610.661.394.6The above borrowings are stated net of unamortised issue co…
17. Trade and Other Payables2015£m2014£mCurrent liabilitiesTrade payables107.879.4Other taxation and social security payable15.713.4Other payables9.715.0Deferred income — lease incentives3.93.7Accruals and other deferred income44.348.0181.4159.5Non-current liabilitiesDeferred i…
18. ProvisionsPropertyrelated£mOthertrading£mTotal£mAt 28 March 20149.78.618.3Charged during the period2.35.98.2Utilised during the period(1.1)(5.6)(6.7)Released during the period(0.7)(0.3)(1.0)At 3 April 201510.28.618.8Analysed as:Current liabilities7.63.010.6Non…
19. Deferred TaxThe following are the major deferred tax assets and liabilities recognised by the Group and movements thereon in the current and prior reporting periods.Propertyrelated items£mShort termtimingdifferences£mShare-basedpayments£mIntangibleassets£mTotal£…
20. Financial Instruments and Related DisclosuresTreasury PolicyThe Group's treasury department's main responsibilities are to:Ensure adequate funding and liquidity for the Group;Manage the interest risk of the Group's debt;Invest surplus cash;Manage the clearing bank operations of the Group, andMa…
21. Capital and ReservesOrdinary shares of 1p each:2015Number of shares2015£0002014Number ofshares2014£000Allotted, called up and fully paid199,063,2221,991199,063,2221,991The holders of ordinary shares are entitled to receive dividends as declared from time to time and are…
22. Share Based PaymentsThe Group has four share award plans, all of which are equity-settled schemes:1. Halfords Company Share Option Scheme ('CSOS')The CSOS was introduced in June 2004 and the Company has made annual grants since. Options are granted with a fixed exercise…
23. Commitments2015£m2014£mCapital expenditure: Contracted but not provided0.90.4At 3 April 2015, the Group was committed to making payments in respect of non-cancellable operating leases in the following periods:Land andbuildings2015£mOtherassets2015£mLand andbuil…
24. PensionsEmployees are offered membership of the Halfords Pension, which is a contract based plan, where each member has their own individual pension policy, which they monitor independently. The costs of contributions to the scheme are charged to the income …
25. Contingent LiabilitiesThe Group's banking arrangements include the facility for the bank to provide a number of guarantees in respect of liabilities owed by the Group during the course of its trading. In the event of any amount being immediately payable under the guarante…
26. Related Party TransactionsSubsidiary UndertakingsThe Groups ultimate parent company is Halfords Group plc. A listing of all principal trading subsidiary undertakings is shown within the Company Balance Sheet, Reconciliation of Movements in Total Shareholders' Funds, Accountin…
27. Off Balance Sheet ArrangementsThe Group has no off balance sheet arrangements to disclose as required by S410A of the Companies Act 2006.
28. Post Balance Sheet EventsOn the 13 April 2015 the Group announced the resignation of its Chief Financial Officer, Andrew Findlay, with a leaving date of the end of October 2015.