five reasons to invest

Market-leading business

We are the UK's largest retailer of motoring and cycling products and services, allowing us to drive benefits in procurement, innovation and customer offering. In car servicing, the market is highly fragmented with no clear leader – with 2% share we have significant opportunity for growth.

Value-creating opportunities

Our strategy will see us develop into areas with good long-term growth prospects such as motoring services, B2B and electric mobility. We also have opportunities to significantly improve return on invested capital.

Building a service-focused business

In the medium-term, half of our business will be in Services – which are essential in their nature – meaning we are a more resilient business with higher customer retention, a lower risk profile and stronger and more sustainable returns on capital.

Strong balance sheet and cash generative

The Group has always maintained a strong balance sheet and benefits from a cash generative business model, with good Free Cash Flow enabling investment in our plan.

Dividend returns

Until the COVID-19 pandemic we have consistently paid a dividend, supported by strong levels of Free Cash Flow. In normal times, we remain committed to returning cash to shareholders through an ordinary dividend.

Our Strengths

Unique and differentiated products and services

We offer a wide range of unique and differentiated products, with exclusive ranges and customer-led innovative products. Much of our Services proposition is also unique, including, for example, on-demand fitting.

Unique, technology-driven proposition in our physical estate

We utilise market-leading and unique proprietary technology in our stores, garages and mobile vans, enabling our colleagues to deliver a best-in-class proposition.

Convenient services proposition delivered in c.900 locations

We are the only business in the UK able to offer Motoring Services in a retail store, a garage, at home or at work, providing customers with unparalleled choice and convenience.

Omnichannel customer proposition

Our business has a strong omnichannel customer proposition with high levels of Click & Collect driving footfall into stores, giving us a unique advantage over online competitors.

Super-specialist expertise that cannot be replicated

As a super-specialist, we have unmatched product and services expertise across both motoring and cycling, creating a significant barrier to entry for our generalist competitors, both on and offline.

Post-COVID-19 Benefits

Our strategy and investment case remain valid, but we believe COVID-19 is likely to lead to some further long-term benefits.

Increase in cycling and motoring journeys

Continued avoidance of public transport will result in a larger number of consumers resorting to individual journeys by bike, car or scooter. The ongoing benefit of higher levels of ownership are accelerated by lockdown, particularly bikes.

An ageing UK car parc

A recessionary environment will lead to consumers holding on to cars for longer. Combining this with an aversion to public transport, demand for car servicing for cars over three years old will increase.

Opportunity to accelerate reduction of property debt

Growth in online, Click & Collect, and home and work delivery will accelerate reshaping of our store portfolio, reducing our expensive retail estate.

Healthy living and climate change

An increased focus on healthy living and a greater conviction to tackle climate change will drive higher demand in bikes and electric modes of transport. Fears of travel abroad and lower discretionary spend will mean a rise in staycations.

Further consolidation of our competitor set

With the financial challenges many businesses have been confronted with as a result of COVID-19, it is possible that there will be further consolidation of our competitor set.