Investors will hope customers at Halfords PLC (LON:HFD) have spent the summer on their bikes ahead of a trading update tomorrow.
Numis Securities reckons the cycle and car accessory chain should report a strong, potentially double-digit performance from the cycling arm, which also may have benefited from increased popularity of the sport during the Olympics.
This would help to make up for a lacklustre showing from the bike business during the spring, which took a hit from the late timing of Easter and wet and cold weather in April and June.
The group’s car maintenance business should have turned in a relatively steady performance, while sales of car enhancement products are likely to have softened given some tough comparisons with a year ago.
“Halfords remains a mature retailer with a somewhat defensible position but limited growth opportunities – we see a discount multiple to the sector as appropriate,” Numis analysts said in a note.
Meanwhile, housebuilders will be in focus with Berkeley Group Holdings PLC (LON:BKG) and Redrow plc (LON:RDW) updating the market.
Analysts will be keen to hear how Berkeley is faring amid the uncertainty in the London property market following the EU referendum.
Broker Peel Hunt said in a note: “Of all the regional housing markets in the UK, the London market remains the most uncertain due to the variety of factors impacting it including overseas buyers (and the FX impact), financial market uncertainty post-Brexit, expensive house prices and, of course, the impact of the bigger London Help-to-Buy product.”
Redrow may also update the market alongside its annual general meeting.
Peel Hunt said: “The strong trading update at the year-end led to upgrades as the group had been trading ahead of expectations, so there might still be some small positive surprises in the actual figures.
“We continue to believe the price/net asset value ratio looks too low given the strong return on equity performance.
"As a result, Redrow remains one of our key picks in the sector.”