Halfords

Halfords Group Plc Interim Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2019/0420
Period End: 
28 September 2018
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
5379 Specialty Retailers
Auditor: 
KPMG
Pronouncements
IFRS 15 Revenue from contracts with customers adopted from 31 March 2018.
Pronouncements
Disclosures included in respect of the future expected impacts of IFRS 16 Leases which is effective for accounting periods starting on or after 1 January 2019.
Change
Reconciliations of alternative performance measures to IFRS figures presented.
Change
Detailed disclosure of fair value measurements and the classification of financial instruments.

Intangible assets - disclosure of impairments

Businesses are currently facing a number of challenges, such as uncertainty surrounding Brexit and a sluggish economy. The retail sector in particular is experiencing a higher level of impairments (and, for some, going concern issues) as they contend with slow sales, high business rates and plenty of competition. Tougher economic conditions generally lead to increased risks of impairment, particularly for intangible assets such as goodwill. 

In the technical findings from the Financial Reporting Committee’s 2017/18 Corporate Reporting Review, published in October 2018 (FRC technical findings 2018), impairment was one area highlighted where additional information was often requested and disclosures did not always contain all the required information.

When writing this report the latest 2017 and 2018 financial statements of 20 UK listed companies were selected at random for review of the impairment-related disclosures, focussing on intangible assets. It was ensured that a variety of industries such as retail, IT services and tourism and leisure were included.

Halfords Group plc Monitor

Halfords Group plc Annual Report 2018
CR Monitor Issue: 
2019/0114
Company covered: 
Halfords Group plc
Period End: 
30 March, 2018
Report issued on 22 January 2019 covered the following practice issues:
Pronouncements
Early adoption of IFRS 9 “Financial Instruments”.
Pronouncements
Extended disclosure of the future expected impacts of IFRS 15 “Revenue from Contracts with Customers” and IFRS 16 "Leases".
Change
Disclosure of two new share-based payment plans.
Restatement
Recognition of a prior year restatement in respect of lease commitments and reclassification between intangible and tangible assets.

Risk and viability in the strategic report

In light of recent high-profile collapses such as Carillion, the reporting by companies of risks and long-term viability is once again in the spotlight. Investors and other stakeholders expect detailed, specific information in the annual report which clearly sets out the key risks facing the company and the potential impact of these risks on the company’s longer-term viability. This report analyses the consolidated financial statements of 20 UK listed companies to assess the quality of risk and viability reporting in the annual report.

Halfords Group plc Monitor

Halfords Group plc-Annual report-2017
CR Monitor Issue: 
2018/0109
Company covered: 
Halfords Group plc
Period End: 
31 March, 2017
Report issued on 16 January 2018 covered the following practice issues:
Change
Detailed disclosure of asset fair values recognised on acquisition including separate disclosure of intangible asset values.
Change
Presentation of audit report enhanced by inclusion of overview section and diagrams.
Change
Risk management disclosures enhanced by inclusion of risk matrix diagram and flow chart explaining risk management framework.
Change
Like for like sales identified as a new key performance indicator.
Change
Directors remuneration policy statement extended to explain impact of good leaver conditions on share based payment awards.

Earnings per share- Halfords Group plc

Period End: 
1 April, 2016
Period End Date: 
2016-04-01
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
5379 Specialty Retailers
Auditor: 
KPMG

Operating Lease disclosures under IFRS

This report sets out our findings in respect of a review of the operating lease disclosures when acting as lessee of 35 companies listed on the London stock exchange. We consider a number of points including the disclosure, as currently governed under IFRS by IAS 17 “Leases”, of total future minimum lease payments focusing on the assets identified and the time periods presented; disclosure of minimum sublease payments expected to be received; disclosure of lease and sublease payments recognised in the period; and disclosure of the general terms of significant leasing arrangements including contingent rent payable basis, the existence and terms of renewal or purchase options and escalation clauses and restrictions imposed by lease arrangements such as those concerning dividends, additional debt and further leasing. 

Halfords Group plc Monitor

Halfords Group plc Annual Report 2016
CR Monitor Issue: 
2017/0110
Company covered: 
Halfords Group plc
Period End: 
1 April, 2016
Report issued on 23 January 2017 covered the following practice issues:
Change
Discussion of business model altered to include reference to integrated approach to sustainable growth.
Change
Performance criteria for share based payments altered to reflect compound annual growth rate in EBITDA target over the vesting period.
Restatement
Total future minimum income receipts from sublet restated without explanation.
Restatement
Provision to carry inventories at fair value less costs to sell restated although there is no specific disclosure of the carrying value of inventories carried at fair value less costs to sell.
Change
Unsecured bank overdraft carried at amortised cost included in analysis of fair values.