Interim Management Statement
Key Points for the Quarter
Retail
· A weak start to the quarter with revenue LfL of -12.4% for the first 8 weeks followed by an improvement in the following 5 weeks (LfL: +0.9%)
· A solid performance in Car Maintenance with 3Bs fitting penetration at 27.0% (Q1 FY12: 22.4%) contributing to a 26.9% growth in Retail service revenues
· Car Enhancement remains in decline but an encouraging positive LfL performance in Car Audio
· Cycling and other Leisure revenues materially impacted by the unseasonal weather conditions with Cycling revenues down 9.6%
· Good progress in online revenues (+13.0%) with the new fulfilment proposition enhancing the multi-channel offer
· Q1 gross margins and costs in line with our expectations
Autocentres
· Pleasing performance with further strong growth in revenue and market share
· Tyre fitting now represents in excess of 10% of Autocentre revenues
Group
· Further progress in delivering the long-term strategy; encouraging feedback from the 3 "laboratory" stores
· Group remains cash generative with a strong balance sheet
· The Board intends to declare at the time of the half-year results an unchanged interim dividend of 8p per share, payable in January 2013
· David Wild steps down as Group CEO. Dennis Millard becomes interim Executive Chairman. Search underway for replacement CEO (see separate announcement)
Guidance for the Full Year
Whilst still early in the year, given the uncertain trading environment our planning assumptions now reflect continuing negative Retail LfLs in the remainder of the first half, with second-half Retail LfLs likely to be flat to mid-single-digit negative. Previous guidance on Retail margins and costs and on Autocentres' profit growth is broadly unchanged. Under these scenarios, FY13 Group Profit Before Tax for the year would range between £62m and £70m and healthy underlying cash flows would continue to be generated whilst making progress implementing our strategic priorities.