They have seen a boost in cycle sales and maintenance but it’s too small a part of their business to offset the dip in car servicing and part sales.
They have a solid business strategy but this year will be tough for them. The dividend has been cut (expect it back late 2021 or start of 2022) but it’ll be back and hopefully higher than before. They are shedding parts of the business that don’t perform and trying to have a more “millennial” outlook on how they need to operate.
There is a lot to love, but this year is going to be tough for investors. Post COVID-19 and after the 2020 full year results (get posted in 13-14 months) we will hopefully see Halford’s doubling down on their service provider plan.
I’m optimistic, but it’s going to be painful this year.