in half-year profits doubling hope

Chief executive Mike Welch. Picture: Jane Barlow
Chief executive Mike Welch. Picture: Jane Barlow
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ONLINE tyre company is expected to see its half-year profits double as it prepares to unveil the next phase of its expansion.

The Peebles-based “click-to-fit” company will report revenues of £13.6 million, against £10.5m last year.

It is expecting full-year revenue in excess of £35m against £23.2m last year as the second half is normally busier and is likely to be boosted by additional income from a new partnership deal.

Mike Welch, chief executive, said the company was benefiting from a combination of factors including television advertising for its tie-up with Tesco and an uplift in repeat business from 30 per cent to 40 per cent.

“We are ahead of our plan,” said Welch, who is targeting £100m of revenue by 2016.

He said the firm was hoping to take its model to Europe and is talking to two other partnerships.

Blackcircles employs 38 staff and has deals with 1,400 ­garages around Britain.

“We are here to change the way the industry works and I am confident we will become a substantial brand in this 
market,” he said.

The company estimates that the UK tyre market contracted by 13 per cent during the last year – a decline that has continued for two years while consumers have kept their cars running on old tyres so they don’t have to splash out on new ones.

Welch has been adding further functional aspects to the business, including financing to lure people into buying winter tyres.