Bicycle and car products retailer Halfords is forecasting 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 about £1.9 billion over the mid-term from £1.6 billion in its 2022-23 year.
Pretax profit are also expected to increase to £90-110m from £50-60m.
It plans annual capital expenditure of £50-60m and a return on capital of over 15%.
"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.
In the mid-to-long term, the group forecast sales to grow to about £2.2 billion and pretax profit to increase to £130-150m.
Halfords said this would be achieved by expanding into more areas of the motoring market, the servicing of electric cars, vans, scooters and bikes and growing its Autocentres garage business.
The group also said it would pay a total dividend of 10 pence a share for the 2022-23 year.
Halfords shares have fallen 30% over the last year.
