Business Highlights
A solid service-led Retail sales performance. Market share in Motoring and Cycling grew overall. Cycling was impacted by the weaker market conditions over the last year, Motoring and Autocentres continued to be robust.
Moving Up A Gear strategy launched in November 2015 with good progress to date.
Customer metrics and Retail colleague retention further improved.
Launch of extended motorbike range and bulbs and battery fitting service, the world's first 130% brighter bulb and new windscreen chip services.
New ranges: Wiggins kids bikes, Boardman Performance and Orla Kiely cycling and leisure.
Exclusive collaboration with Olympic cyclist Laura Trott to create a range of limited edition performance bikes for women under the Trott brand.
Refurbishment of 25 Retail stores and 24 Autocentres, opening of 11 Autocentres and 6 Cycle Republic stores.
Acquisition of Tredz and Wheelies post year end adds capabilities in online sales of premium bikes and PACs.
Financial Highlights FY16
Group LFL +1.5%, Retail LFL +1.3%, Autocentres LFL +2.5%
Group Underlying EBITDA up 4.3%
Basic earnings per share up 1.5%
Proposed full-year dividend per share of 17.0p up 3.0%
Net Debt reduced to £47.9m, 0.4x EBITDA
Net Debt of 1x EBITDA to be targeted over time, with flexibility to 1.5x for appropriate M&A
Jill McDonald, Chief Executive, commented:
"This was a solid performance and we gained market share in both our motoring and cycling divisions. We also saw strong growth in our service-led offerings, including our 3Bs fitting in motoring, which is now complemented by a similar motorbike service. In cycling our sales improved in the second half of the year and cycle repair delivered good growth. The recent acquisition of Tredz alongside the continued expansion of Cycle Republic and the launch of our new Laura Trott range demonstrates the strength and breadth of our cycling proposition. In Autocentres, like-for-like sales grew for the 10th consecutive quarter and customer service measures improved. I am pleased with our progress. The Moving Up A Gearstrategy aimed at driving sustainable long-term growth is developing well, including a step change in customer data, the introduction of new services, product innovation and exciting collaborations."
