Bicycle and car products retailer Halfords on Tuesday forecast a jump in sales and profit over the mid-term as its core markets recover and it grows market share.
Ahead of a Capital Markets Day presentation, Halfords forecast annual sales to grow to £1.9 billion (€2.15 billion) over the mid-term from about £1.6 billion in its 2022-2023 year and pretax profit to grow to £90-£110 million from £50-£60 million .
It plans annual capital expenditure of £50-£60 million and a return on capital of over 15 per cent.
"We expect to deliver this growth through a combination of our core markets recovering from the current very challenging conditions, growing market share by leveraging the unique platform we have built, our acquisition synergies maturing, and using scaled and rich customer and vehicle data to drive customer lifetime value," Halfords said.
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In the mid-to-long term, the group forecast sales to grow to about £2.2 billion and pretax profit to grow to £130-£150 million .
Halfords’ shares have fallen 30 per cent over the last year. - Reuters
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