Halfords bosses miss out on bonuses after profits dive

Halfords bosses lost out on bonuses last year as the company’s annual profits missed targets.

The retailer’s chief executive, Graham Stapleton, and chief financial officer, Loraine Woodhouse, were awarded no extra payouts after pre-tax profits failed to meet a set threshold, according to the company’s annual report.

Underlying profit before tax for the year to March 29 dropped 17.9% to £58.8 million, falling well short of a £69 million goal.

It marks a significant cut in earnings for Mr Stapleton, who last year took home a bonus as well as several payouts to compensate for rewards he missed out on by leaving Dixons Carphone.

His total award this year is £642,117, less than half the £1.82 million he collected last year.

Last month Halfords warned that its new strategy would taker longer than planned to implement, due to a weaker consumer environment.

Capital investment for the current year is now likely to be £35 million, below previous targets of between £40 million and £60 million.

It was a turbulent year for the company, with last summer’s warm weather hitting demand for weather-related products in its motoring division.

Rivals have also been hit by the weaker environment, with Evans Cycles forced to sell up to Mike Ashley’s Sports Direct and close a handful of stores.

Halfords has also experienced two years of turnover in its management team, with Ms Woodhouse joining from Waitrose last year to replace outgoing finance boss Jonny Mason.

This came just a year after Mr Stapleton came on board to replace Jill McDonald, whose tenure as chief executive ended when she joined Marks & Spencer as head of the non-food business.