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Halfords Group plc
  • Overview
    • Overview
    • A Year of Focus and Momentum
    • Group Highlights
    • Investment Case
    • Group at a Glance
    • Chairman's Statement
    • Chief Executive's Statement
  • Strategic Report
    • Strategic Report
    • Our Purpose, Values, Strategy and Culture
    • Our Marketplace
      • Our Marketplace
      • Overview
      • Motoring Market
      • Cycling Market
    • How We Create Value
    • Our Strategy
      • Our Strategy
      • Accelerating Our Strategy
      • Inspire
      • Support
      • Lifetime
    • Our Key Performance Indicators
    • Our ESG Strategy
      • Our ESG Strategy
      • Overview
      • Inspire
      • Support
      • Lifetime
      • Our people
      • Diversity
      • Our community
      • Responsible trading
    • s172(1) Statement
    • Chief Financial Officer's Report
    • Our Principal Risks and Uncertainties
    • Viability Statement
  • Our Governance
    • Our Governance
    • Board of Directors
    • Directors' Report
    • Corporate Governance Report
      • Corporate Governance Report
      • Chairman's Letter
      • Company Purpose
      • Division and Responsibilities
      • Board Leadership
      • Stakeholder Engagement
      • Remuneration
    • Nomination Committee Report
    • Environmental, Social and Governance ("ESG") Committee Report
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      • Remuneration Committee Report
      • Chair's Letter
      • Directors' Remuneration Policy
      • Directors' Remuneration Report
    • Directors' Responsibilities
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    • Consolidated Statement of Comprehensive Income
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    • Consolidated Statement of Cash Flows
    • Note to Consolidated Statement of Cash Flows
    • Accounting Policies - Group
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    • Company Balance Sheet
    • Company Statement of Changes in Shareholders' Equity
    • Accounting Policies - Company
    • Notes to the Financial Statements - Company
  • Shareholder Information
    • Shareholder Information
    • Five Year Record
    • Glossary of Alternative Performance Measures
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  • Annual Report 2020

Annual Report and Accounts for the Year Ended 3 April 2020

Fixing Bike Wheel

Corporate Governance Report Company Purpose

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Our purpose is to Inspire and Support a Lifetime of motoring and cycling

Establishing Our Purpose

We know that the long-term success of our Company is founded on having a clear purpose, supported by a strategy which considers the views and needs of our many stakeholders. One such key stakeholder group is our customers who we help meet their motoring and cycling needs. This may be for their daily commute or their leisure activities, such as holidays or staycations. Many 'first' purchases are made at Halfords, be that first car seat, first kids' scooter, or first children's bike and our role is to support customers through these stages of their life's journey. As society seeks to reduce carbon and find more sustainable ways for us to live our lives, we see the emergence of an 'electric nation' as a positive opportunity that fits perfectly with our overall corporate purpose.

Read more about how our Purpose Aligns with Our Culture.

Ensuring our Long-Term Sustainable Success

Whilst all members of our Board have a solid understanding of the retail industry in general, and of customer service businesses in particular, we have set out below the specific experiences of each Non-Executive Director and how their skills support the different aspects of our operations in a complementary way.

How we are working towards our vision: being a super-specialist in motoring and cycling, trusted by the nation:

Dynamic to the Market Needs

Our Group operates in a market in which customer needs and expectations are ever-changing. We need to be able to evaluate these external trends so that we can make the best strategic choices.

Skills our Board has

Retail industry-specific knowledge in relation to both our core businesses and in those areas of increased focus under our new Strategy (i.e. car services and offering financial products that provide more convenient ways for customers to pay).

Board members

  • Jill Caseberry
  • David Adams

Engagement With Our Stakeholders

Engagement with our stakeholders to maintain trust and enhance understanding of our business.

Skills our Board has

Experience in stakeholder engagement activities, such as our 'employee voice' initiative and the shareholder consultation in relation our new Remuneration Policy.

Board members

  • Helen Jones
  • Jill Caseberry

Commitment to Delivering Financial Value

Commitment to delivering financial value to shareholders.

Skills our Board has

Experience in setting and delivering financial KPIs in challenging retail markets.

Board members

  • Keith Williams
  • David Adams
  • Helen Jones
  • Jill Caseberry

Sustainable Operations

Commitment to operating in a responsible way so that we are a Company that people want to work for and invest in.

Skills our Board has

Experience of the setting and delivery of ESG commitments, including recycling, energy usage and sustainable electric cars and bikes.

Board members

  • Helen Jones
  • Jill Caseberry

Read more about the Skills of the Board in the Corporate Governance Report.

Key Statement of Halfords Culture

Our Culture Journey

The Board recognises the importance of its role in ensuring the culture of the organisation is aligned to its business strategy and ambition to become a market-leading services business. In support of this, a full cultural review has been completed this year in readiness for the refresh of its colleague values and behaviours in Q1 of 2021.

The Board monitors culture on an ongoing basis both formally, and informally, through the outputs of colleague engagement surveys, including the Times Top 25 Big Companies survey, in which Halfords was, once again, placed in 2020; and through regular listening groups held across all areas of the business.

The voice of our colleagues is represented in Board meetings by Non-Executive Director, Helen Jones.

The table below outlines the key culture and engagement activities undertaken this year:

2018/19

Q4

Listening groups are held throughout the year. These enable colleagues to provide feedback about the business to members of the senior management team and on occasion, these meetings are also attended by Helen Jones and the Executive Directors. Outputs and actions are monitored by the Board.

Appointed Helen Jones as the Non-Executive Director with accountability for Employee Voice.

Listening group programme established for new financial year to include Board members.

2019/20

Q1

Annual colleague engagement survey conducted.

Engagement action planning undertaken.

Bonusable engagement targets set for Executive Directors and the Executive Committee and approved by the Board.

Listening groups are held throughout the year.

Q2

Times Top 25 Big Companies survey conducted.

Full cultural review commenced, to include a review of stores, symbols, structures, control systems and rituals and routines.

Listening groups are held throughout the year.

Q3

Times Top 25 Big Companies accreditation obtained.

Board review and input into culture review.

Sunday Times 25 Best Companies Badge

Project established to refresh colleague values and behaviours.

Listening groups are held throughout the year.

Q4

1,300 colleagues engaged in defining colleague values and behaviour framework.

Values and behaviour framework agreed with the Board.

Listening groups are held throughout the year.

Aligning Our Purpose with Culture

Our colleagues and culture underpin our business Strategy and are critical to ensuring our ability to become a market-leading services business.

We know that we will only be successful in wowing our customers through engaging the hearts and minds of our colleagues, ensuring they go above and beyond to meet their needs.

Aligning our values diagram

During the course of the year, we reviewed the culture of our business to ensure alignment with our Strategy and ambition to become a market-leading services business, and our associated plans. This review resulted in the refresh of our colleague values and behavioural frameworks which builds on the strength of our existing leadership and 'hands on' colleague behaviours. Our aim is to create a 'One Halfords' team approach and unite all parts of our business, old and new. We engaged over1,300 colleagues in building these values and behaviours, through a combination of both face-to-face workshops and questionnaire completion.

Due to the COVID-19 pandemic we took the decision to delay the roll-out until the first half of FY21 to ensure that it will have the full attention of our colleagues across the Group, this was led by senior leaders who had training sessions which commenced prior to the onset of the pandemic. We look forward to sharing our colleague values with you following our internal roll-out.

Directors and senior leaders, across the business, are already measured on the level of colleague engagement in their respective areas of the business through bonusable objectives that are set by the Board on an annual basis. The integration of behaviours into our performance management framework from the start of the new financial year will see this measurement extend further into the organisation.

Culture and values diagram

Workforce Engagement

Halfords has long established practices of inviting feedback from colleagues across all areas of the business, including holding regular listening groups, appointing and meeting with local colleague engagement champions, and conducting regular colleague surveys, including the Times Top 25 Big Companies survey, in which we were placed again this year for the seventh consecutive year.

This year we held a total of 111 listening groups across the Group as a whole. Outputs and associated actions are reviewed by the Board and are incorporated into Executive Directors' and Executive Committee functional engagement plans. As discussed above, colleague engagement is a bonusable objective for Executive Directors and members of the Executive Committee.

Under Helen Jones' direction, our focus this year has been to ensure consistency of our engagement approach and action planning across the Group.

In addition to the above, the Group has long established grievance and whistleblowing policies that facilitate colleagues' ability to raise any matters of concern more formally, and in total confidence, should the need arise. The Board reviews reports relating to whistleblowing cases and the process is outlined in the Audit Committee Report. We know from the calls received and the data obtained that a large proportion of the whistleblowing calls received via the helpline are from store colleagues seeking clarification on HR or safety issues, this shows that the process works well as an adjunct to our normal HR processes and ensures we provide the best support we can to our colleagues.

Monitoring Culture

The Board plays an active role in monitoring the culture of the business through its regular facilitation of listening groups and site visits. The Board reviews the results of the annual colleague engagement survey and sets engagement targets for Executive Directors and Executive Committee members. The outputs of listening groups and associated action plans are reviewed by the Board and key actions are incorporated into functional engagement plans.

Our more holistic review of the culture of the business undertaken earlier this year, in the context of our strategy and plans, told us that Halfords is a great, collaborative place to work, is engaging and is values led with knowledgeable friendly colleagues that go the extra mile to serve our customers. It also enabled us to identify opportunities for us to improve our rituals and routines, control systems and structures that will enable us to improve our customer centricity through a 'One Halfords' team approach which will embed, throughout our business, through the roll-out of the colleague values and behaviours refresh.

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