BLACKCIRCLES, the online tyre retailer, has seen half-year turnover increase by 30% to £5m putting it on course for a record year.

The firm, started by then 23-year-old Mike Welch in 2001, is now looking to expand further into Europe after successful trials of its service in France and Germany.

The Borders-based firm said it has 200,000 customers each year, and over the first half of the year visitors to Blackcircles.com increased by 55%.

Blackcircles customers buy online and have their tyres fitted at their local independent garage at no extra cost.

Welch, now managing director of Blackcircles.com, said: "The current credit crunch is going to be a wake-up call for many firms which have been charging consumers relatively high prices.

“Our business was launched with the aim of giving consumers the best deal. While competitors have been charging high prices, the structure of our business means we can offer a better deal.

“As the cost of living increases our proposition is now a much better match to current consumer sentiment. We are delighted with the surge in revenue which we expect to continue in the second half of the year,” he said.

Welch said the firm is now heading to provide a same day fitting service across the UK. “In some areas we can do this just now, but certainly within 24 hours. We can achieve this through a combination of investment in technology and logistics. We had a good proposition but needed to invest to make it even better.”

Blackcircles’ growth follows a number of partnership agreements that enabled the firm to introduce its brand to millions rather than tens of thousands of potential customers.

The firm launched into France and Germany earlier this year and Welch said more launches were in the planning process.

“Our focus is on developing a world-class UK business but the potential internationally is massive.

“We have been pleased with the contributions from foreign markets but we are only scratching the surface. Our focus is creating an international model that is scalable.”

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