Business
Non-recurring charge relating to lease guarantees
Non-recurring charge relating to lease guarantees.
About this update from Halfords Group Plc
[{"type":"text","content":"\n \nRNS Number : 7966H Halfords Group PLC 03 June 2011 \n \n\n3 June 2011\n \nHalfords Group plc\n Non-recurring charge relating to lease guarantees\n \nHalfords Group plc, the UK's leading retailer of automotive and leisure products and leading operator in garage servicing and auto repair, announces that;\n \nFollowing the decision by Focus DIY to enter into administration and the subsequent announcement of the closure of stores, Halfords will recognise a non-recurring expense of £7.5m in the year ended 1 April 2011. This non-recurring expense relates to the creation of a provision for the potential liabilities arising from guarantees provided by Halfords prior to July 1989. An estimate of the potential liability relating to these guarantees was previously disclosed as a contingent liability. The guarantees were provided to landlords of properties leased by Payless DIY (now part of Focus DIY) when both Halfords and Payless DIY were under the ownership of the Ward White Group. It is anticipated that the cash outflow relating to the guarantees will be incurred over the next three years. The Group is taking mitigating actions to reduce these liabilities.\n \n \nEnquiries:\n \nAnalysts:\nHalfords Group plc\nAndrew Findlay, Finance Director \nLouise Richardson, Investor Relations +44 (0) 1527 513113 \nMedia:\nMaitland\nNeil Bennett +44 (0) 207 379 5151\nBrian Hudspith &nbs...