For the period52 weeks to
1 April
53 weeks to
3 April
Non-recurring operating expenses:
Organisational restructure costs (a)1.7
Lease guarantee provision (b)(0.2)
Onerous lease provision (c)(0.2)
Impairment of Property, Plant and Equipment (d)0.7
Non-recurring items before tax1.70.3
Tax on non-recurring items (e)(0.3)0.1
Non-recurring items after tax1.40.4
  1. In the current year organisational restructuring was undertaken across Autocentres and Retail, to better align resource to the requirements of the business. This resulted in a non-recurring redundancy expense of £1.7m.
  2. A non-recurring expense of £7.5m was incurred in 2011. This expense related to the creation of a provision for the potential liabilities arising from lease guarantees provided by Halfords prior to July 1989. 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 ownership of the Ward White Group. Focus DIY entered into administration in May 2011. In the prior year the continued settlement of the Group's guarantor obligations resulted in a release of £0.2m of the original amounts provided, which resulted in no further outstanding provision in relation to this issue.
  3. A charge was incurred in prior periods relating to stores where the present value of expected future cash flows was deemed to be insufficient to cover the lower of cost of exit or value in use. During the prior year a release of £0.2m occurred following the finalisation of an exit agreement for the Wembley store.
  4. Impairment charge in respect of property, plant and equipment, in respect of the Stores Fit To Shop initiative, where the carrying amount of these assets has been deemed to exceed the recoverable amount.
  5. The tax credit of £0.3m represents a tax rate of 20% applied to non-recurring items. The prior period represents a tax charge at 21% applied to non-recurring items after adjusting for the non-deductibility of the asset impairment charge and settlements to release Halfords from its guarantor obligations under the leases.