Share boost for Applegreen but Brexit fears loom

Shares in fuel retailer Applegreen rose more that 4% yesterday as it reported a 20% increase in profits for the year to the end of June, compared to the same period last year.

Chief executive Bob Etchingham warned that customers in the UK, an increasingly key market along with Ireland and the US, have become “nervous” because of Brexit.

Applegreen said it will continue to look at potential acquisitions in Ireland, the UK, and US, adding that an upturn in construction has been a boon to its foodcourt offering in the Republic, where it has a market share of around 15%.

Gross profits for the first half of the year were €82m, while revenue was up 21% to €672.5m. Earnings before interest, taxes, depreciation, and amortisation increased 28% to €16.6m.

Some 32 sites have been added to Applegreen’s stock in 2017, making 275 in total.

The firm said its Irish food offering had improved due to a rise in construction, while its UK profits improved due to a rebound in fuel margins.

Mr Etchingham said the firm would continue to “identify opportunities for growth across our three markets”.

He added: “We now have a good platform for growth in each of our three markets and are well positioned for the seasonally important second half of the year.”

In January, Applegreen paid €15.7m for a 50% stake in the Joint Fuels Terminal in Dublin Port, which it says will allow it to import fuel directly from refineries.

In July, Applegreen leased 42 sites in or close to the city of Columbia, South Carolina, including 34 petrol stations with 11 Burger King outlets. The company has stations in Long Island, New York, as well as New England.

Last month, it bought seven sites along the A1 motorway in the UK.

Related Articles

May: UK will not wait to take back control of defence and foreign policy

Theresa May: Do whatever it takes to protect the security of Europe post-Brexit

Exports shrug off Brexit fears in record year

Hard border a possibility after Brexit, Taoiseach acknowledges

More in this Section

Pharma lifts the Trump blues for Ireland

We should cheer, not fear, rising interest rates

Ireland in firing line as Trump talks up US trade

Procurement model is failing the State


Breaking Stories

Fraudsters 'preying on people's emotions to steal their cash'

Wall Street stocks stretch winning streak to six days

Irish pensions still ‘vulnerable’ despite rebound

Air France takes on Ryanair

Lifestyle

The biggest cancer killer will take your breath away

Hopefully she had an idea...

Power of the press: Meryl Streep and Tom Hanks discuss 'The Post'

More From The Irish Examiner