Yahoo Finance will soon be upgrading our Conversations message board platform to provide a better experience for our users. Only comments published since April 21, 2021 will be visible on Yahoo Finance after the upgrade. If you wish to download and save any of your older comments, please submit a request via the Privacy Dashboard by no later than Aug. 15, 2022.
Preliminary 2020 results show a £32.1m loss for net non underlying items, the majority of which related to the exit of Cycle Republic.
Halfords originally closed Bikehut and Cycle Republic stores in 2009 at a cost of £1.2m as it said that they did not deliver sufficient returns on their investment and then Halfords revived the Cycle Republic chain 5 years later.
In 2016 they had 10 stores, in 2017 they had 15 stores and in 2018 they had 20 Cycle Republic stores.
If Halfords recognises a £450m operating lease liability on the balance sheet on their upcoming annaul accounts it will also recognise a similar ~£450m asset on the balance sheet for future lease benefits.
It will more or less balance out, other than small shifts in fair value of the lease benefit.
The gradual adoptation of new IFRS by all listed businesses is a real good thing.
E.g. If you agreed the rent on your house for the next 1,000 years, you wouldn't recognise the liability of paying 1,000 years of rent without recognising the asset of having somewhere to live for the next 1,000 years.
https://www.fool.co.uk/investing/2019/10/01/a-share-price-warning-for-uk-retail-stocks/