Halfords has upgraded its full-year profits guidance amid rising revenues for the rebounding company.
The motoring and cycling retail giant £80-90m in full-year profits before tax, a hefty increase on previous estimates of £75m.
The company has enjoyed a 19.2 per cent growth in revenues over the first half of the financial year.
This has been driven by increased demand at its autocentres, which have benefitted from an 88.8 per cent upturn in revenues compared to the full year of 2020.
Cycling revenues also went up a gear, with growth reported at 8.8 per cent despite the sector being plagued by supply issues.
Halford’s shares soared 19.81 per cent after the results, reaching 333.80 on the FTSE All-Share at close of play.
Despite the upturn in performance, the group has reported a net debt of £232.7m, with the company admitting working capital is abnormally low.
It is also preparing for an electric revolution with sales of e-bikes, e-scooters and accessories have exploded, increasing by 140 per cent compared to two years ago.
Nevertheless, Graham Stapleton, chief executive officer, is confident Halfords can navigate supply chain issues and inflationary pressures as the economy continues to recover.
He said: “There is good momentum in our existing business, the strategically important area of motoring services continues to grow strongly, and our recent acquisitions are all performing well. As a result, despite the challenging trading environment, I am very excited about our future growth prospects.”