For the period | 52 weeks to 29 March 2019 £m | 52 weeks to 30 March 2018 £m |
---|
Non-underlying operating expenses: | | |
Organisational restructure costs (a) | 6.8 | 4.3 |
Group-wide strategic review (b) | 2.4 | – |
One-off royalty income (c) | (1.6) | – |
Acquisition and investment-related fees (d) | 0.2 | 0.2 |
Autocentres operational review (e) | – | 0.6 |
Operating lease obligation (f) | – | (0.3) |
Non-underlying operating expenditure | 7.8 | 4.8 |
Acquisition-related interest charge (g) | – | (0.3) |
Non-underlying items before tax | 7.8 | 4.5 |
Tax on non-underlying items (h) | (1.4) | (0.8) |
Non-underlying items after tax | 6.4 | 3.7 |
- In the current and prior period separate and unrelated organisational restructuring activities were undertaken.
Current period costs comprised:
- Redundancy costs of £1.5m relating to roles which will not be replaced; and
- £5.3m of asset write-offs, principally resulting from the strategic decision to re-platform the Retail and Autocentres websites.
Costs in the prior period comprised:
- Redundancy costs of £0.7m relating to roles which will not be replaced;
- £1.0m provision for compensation to the new CEO on joining for foregoing entitlements from a previous employer, as outlined at the time of announcement of his appointment;
- £1.5m in relation to a restructure of the Boardman business. Boardman has stopped selling directly to customers through the Boardman website. The website will be maintained as a 'brand' website, with customers being directed to purchase bikes predominantly through Cycle Republic; and
- £1.1m in relation to asset write-offs, principally resulting from the strategic decision to close the marketplace offer on Halfords.com.
- Costs of £2.4m were incurred in the period in relation to the costs of preparing the new Group strategy, which comprised of the following:
- £2.0m of external consultant costs; and
- £0.4m warehouse and distribution costs in order to align our network with the new strategy.
- A one-off royalty income of £1.6m was received in the current period in relation to the use of a software licence.
- £0.2m of costs were incurred in the current period in relation to the investment in Tyres On The Drive and costs relating to a potential acquisition which did not progress. In the prior period £0.2m of costs were incurred relating to the investment in Tyres On The Drive.
- Prior period costs of £0.6m were incurred in relation to the review of the operating model of the Autocentres business.
- The operating lease obligation in the prior period related to a provision release of £0.3m from amounts originally provided for the Group's guarantor obligations arising from historically held lease guarantees.
- There was a £0.3m credit in FY18 from the release of the remaining portion of interest charge due on the contingent consideration for Tredz, which was paid in May 2017.
- The tax credit of £1.4m represents a tax rate of 18.0% applied to non-underlying items. The prior period represents a tax credit at 19.0% applied to non-underlying items.