Halfords boss quits as profits tumble

HALFORDs boss David Wild was told to get on his bike after posting another profit warning following a string of problems that has seen the firm’s value halve since 2010.

the bicycles and car parts retailer said the time was right for a change at the top and Wild, a former tesco veteran, was axed with immediate effect.

investors welcomed the news sending the shares up 12pc at one point – the stock has fallen 45pc over the past year.

Chairman Dennis Millard will stand in as executive chairman until a replacement chief executive is found.

the firm is seeking a new boss with experience of the service industry having seen strong growth in its autocentre car servicing business.

While Millard, a former finance director of Cookson, is committed to the 470- strong Halfords store chain, it has been hit hard as consumers cut back spending on all but essential items.

Millard said: ‘After careful deliberation it is felt that now is the right time for a change of leadership in the group to enable it to implement that strategy and maximise the opportunities that lie ahead.

‘We believe that this is the time for change.

‘We need somebody with different skills than David to help coalesce the team and drive it forward.’

Wild will receive no pay off other than the 12-month notice period to which he is entitled.

He receives an annual salary of £517,650 together with the provision of a company car, life and medical insurance benefits worth a total of £50,101 per annum and an annual pension contribution of £77,648 which takes the total to £645,399. this will be paid in 12 monthly instalments and will cease should he receive income from a new job.

the shares ended the day up 8.4p to 205.8p as most analysts suggested the problems at the firm were linked to management and not strategy.

philip Dorgan, an analyst at broker panmure Gordon, said: ‘Halford’s first quarter statement is poor as expected. ‘Many regard Halford’s problems as being in execution rather than structural and this could be right.’

the firm posted a worse than expected 7.5pc fall in underlying sales for the 13-weeks to June 29 blaming the wet weather on hurting camping and bicycle sales.

it guided a new range for annual pre-tax profit of between £62m and £70m and pledged to keep the interim dividend.