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Halfords: Strategic Financial Management

554 Words3 Pages

Strategic Financial Management Halfords is a FSTE250 retailer. The company has been trading for hundred and twenty four years. During that time it has a number a number of different owners and was eventually floated on the London Stock Exchange in 2004. Its latest financial accounts are up to the 03/04/2015, at which date its shares were trading at 470p giving a total market capitalisation of The firm currently operates in three main markets Although it is incorporated as a single legal entity it is structured as three separate businesses. Halfords also has a number of different brands.

Halfords board publish a considerable amount of information about their strategy. These report detail Halfords board approach to risk management, their foreign exchange hedging policy, intended major investments and dividend policy.

Note about information source used for calculations, reference EMT

Cost of Debt
Halfords report do not explicitly state the cost of debt. This has been calculated by taking the annual Net Interest charge divided by the total non-current liabilities. This gives values of 3.47% and 3.77% for FY15 & FY14 respectively. I will use 3.47% as the cost of debt wherever this might be required.

Equity Shares …show more content…

This report will assume that there this will not change. A number of sources of financial information about Halfords financial performance have been compared. Only minor differences have been found. In addition to this Halfords shares are frequently traded (insert number per day). These conditions are in line with the assumptions of Efficient Market Theory (EMT). This report therefore assumes that Halfords share price does represent its market

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