Halfords Group PLC (LSE:HFD) will be hoping to post its last interims outside of the FTSE 350 on Wednesday after data showed it's on track to return to the mid-cap index.
Shares in the bike and motoring retailer have risen 9.5% year-to-date, and, barring a substantial drop between now and next Tuesday, it should be returning to the FTSE 250.
A 20-week trading update in September revealed a 7.8% uptick in revenues, nearly half of which came from its servicing and repair division Autocentres.
“Halford’s shift towards more reliable service-based revenue is one that investors applaud and, so far, this year it has looked to be paying off,” said Aarin Chiekrie, an analyst at Hargreaves Lansdown.
A £1.4 billion merger bid by van rental firm Redde Northgate was turned down by the high-street retailer on Monday, according to the Telegraph.
One City source said Redde Northgate had proposed a nil-premium merger, but the discussions were abandoned because of disagreements over price.
Full-year underlying profits were initially set at between £48 and £58 million, but analysts are hoping management will tighten the range next week.
Chiekrie said: “A further slowdown in the more discretionary pockets of Halford’s business, like cycling and car cleaning, could put the brakes on reaching profit targets. As could the current lack of skilled labour in its Autocentres business, which makes it more difficult to service demand.”
Shares in Halfords are up almost 1% on Thursday, having opened at 236p.