Applegreen dispenses positive start to year

Ireland-focussed petrol forecourt retailer Applegreen updated the market on its current trading at its annual general meeting on Monday, confirming that it had a “positive start” to the 2017 financial year - both in terms of trading, and in the development of the business.

The AIM-traded company said its business in Ireland was delivering “strong growth” in non-fuel sales in particular, while its fuel margin experience had been in line with 2016.

Its board said it also continued to enjoy “good growth” in UK food sales as it expanded its branded food offering.

“Overall the trading performance of the business for the first four months of the year has been in line with the board's expectations,” its statement read.

Since 31 December, Applegreen added 16 sites to the estate.

“In the Republic of Ireland we have added four new petrol filling stations (PFS), one new service area and five dealer sites.

“In the UK we have opened three new PFS as well as our latest motorway service area in Lisburn, Northern Ireland,” the board said.

“Our pipeline of new PFS continues to be strong in both the Republic of Ireland and the UK.”

Applegreen also opened two new PFS sites in the New England area of the US, and said it made “very good progress” in generating further opportunities to grow in that region.

“We have added to our management team to cater for the growth planned in that region.”

The company completed six rebrands and upgrades so far this year, including two former PFS sites in Great Britain that it upgraded to trunk road service areas.

It claimed the pipeline of service areas continued to develop in both Ireland and the UK, with a “significant number” of prospects in both core markets at various stages of the planning process.

The board said it was confident of further expanding its businesses in each territory.

“Subject to shareholder approval, we intend to pay a maiden dividend of 1.25c per share in June 2017.

“We committed to a prudent dividend policy at the time of our IPO and our financial performance since then warrants this move to deliver further shareholder value.”

Applegreen’s board said it wa “very satisfied” with the progress and performance of the business for the first four months of the year.

“This gives us confidence in our ability to meet our growth targets for 2017.”

All of the resolutions proposed at the annual general meeting were duly passed, the board confirmed.