Halfords plans for some stores to stay open during coronavirus crisis

Halfords, a designated provider of essential services, has also stress-tested for a sales fall of 25% – about £300m – as a result of the coronavirus crisis and said it is confident it can operate within its existing debt facilities.

Halfords said that many key workers – including British Transport Police and Ministry of Defence staff – rely on it to keep their motor fleets running.

Halfords’ Autocentres and vans are still trading. Halfords said that its retail division is “working through a plan to provide partial store coverage from later this week”. The retailer said: “We are committed to playing our part, but only if we can ensure the health and safety of our colleagues and customers, and we are able to comply with government policy.”

The retailer reported that recent trading has been in line with expectations ”and, in fact, very strong in the last couple of weeks”. Profits this year could be at the lower end of, or slightly below, the current guidance range of £50m to £55m but “it is not possible to provide meaningful guidance on earnings” for the 2021 financial year.

Halfords chief executive Graham Stapleton said: “The health and safety of our colleagues and customers remain our top priority and we continue to take all appropriate action in line with government advice. 

”Halfords has an essential role to play in keeping the country moving, providing vital support to emergency workers, fleet operations, key workers and the general population as they travel for essential supplies and, where required, attend places of work.

”While significant uncertainty exists on the impact of Covid-19, we are taking immediate and significant measures to contain our costs and protect our financial position. We have a strong balance sheet, with significant liquidity headroom and low levels of financial debt.

”This is an unprecedented challenge for all of us, but I am confident that the actions we are taking to successfully navigate the current situation will put the business in a position of strength, enabling us, over the medium term, to refocus on our strategic transformation.”