Interim Management Statement
Key Points for the Second Quarter
Retail
· Cycling: strong performance fuelled by active trading, better weather and Tour de France & Olympic successes
· Car Maintenance: solid performance across all main categories and a further increase in 3Bs fitting penetration
· Car Enhancement: growth in Audio and Car Cleaning partially offset the Sat Nav decline
· Travel Solutions: reduced Camping demand and a focus on maximising cash margins in Child Travel
· Enhanced multichannel offer and customer fulfilment delivered a 30.0% uplift in online sales
Autocentres
· Strongest LfL performance since acquisition in February 2010
· Better-than-expected increase in tyre participation
· Good pipeline of new centres for opening this year
Group & Outlook
· Group profit before tax for the first half is expected to be £40m-£42m reflecting the strong Q2 sales performance and an acceleration of operating-cost investment
· First-half net debt is expected to be c.£115m, reflecting robust working capital and cash management
· Full-year guidance and second-half planning assumptions of flat to mid-single-digit negative Retail LfLs remain unchanged; however, given the Q2 performance, FY13 PBT would now be in the upper half of the previously-stated range of £62-70m
· As previously indicated, the intention is to declare an unchanged interim dividend of 8p per share, payable in Jan 2013
· Matt Davies is appointed Chief Executive with immediate effect; see separate announcement