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Halfords Group plc (LSE:HFD) Chief Executive Officer David Wild resigned from his post with immediate effect and also left the Board of the British leisure and car products retailer , the company said today.
After spending nearly four years with Halfords, Mr. Wild exited from the company following the first quarter results revealing 5.6% drop in the group’s like-for-like sales and 5.2% fallout in total revenue, brought about by the “unseasonal weather conditions” during summer.
Dennis Millard, the Non-Executive Chairman of the group, will assume the executive post and head the Executive Committee, until a new CEO is appointed.
Mr. Wild, who left behind some £645,399 per annum of compensation, said he felt “it is the appropriate time to step down and seek fresh challenges elsewhere”.
“I have enjoyed my time at Halfords and feel we have accomplished a great deal during my tenure as CEO.”
The Right Time
Chairman Millard said Mr. Wild’s departure from the company is at an opportune time “for a change of leadership in the Group to enable it to implement that strategy and maximise the opportunities that lie ahead”.
The decision was made the night prior to the release of Halfords’ 13-week trading performance ending 29th June 2012 that saw a drop of 9.6% in revenue from cycling and leisure products, including camping equipment and travel accessories.
The retail business was partially offset by the autocentre division, which gained 9.2% like-for-like sales and posted 14.5% increase in total revenue.
However, the group assumes a continuing downtrend in the retail LFL for the remainder of the first half of the year to a “flat to mid-single-digit negative” during the second half “given the uncertain trading environment”.
“Under these scenarios, FY13 Group Profit Before Tax for the year would range between GBP62m and GBP70m” , the group stated, about £48 – £56 million less than last year’s £118 million figure.
According to Mr. Millard, the company will be considering both internal and external candidates for the CEO post, who has to be experienced in both the retail and service sectors.
“The Board and I would like to thank David for his efforts and strategic insight over the past four years,” Interim Executive Chairman Millard said.
Company Spotlight
Halfords Group plc is a retailer of automotive and leisure products in the United Kingdom and Ireland and an independent operator in garage service and auto repair in the UK, with about £869.7 million revenue in 2011.
Despite the poor first quarter performance, Halfords’ shares were up 6.1% to 209.4 pence at 13:00 GMT, seen by Seymour Pierce analyst Kate Calvert as a positive response of the market on the departure of Mr. Wild, as quoted by the Wall Street Journal.
