Growth in fast food sales and convenience retail boosted revenues at Euro Garages, one of the UK’s largest independent forecourt retailers – operating predominantly BP-branded forecourts.
Total sales for the Blackburn-based group rose to £314m (2011: £305m) in the 12 months to 31 July 2012. It said sales at its fast food franchises, which include Starbucks, Subway and Burger King, were ahead by 10% whilst its SPAR convenience store network increased 2.5%. Combined, non-fuel revenues were up 10% and accounted for £55m of turnover (2011: £50m).
Non-fuel sales + coffee
Non-fuel sales were also responsible for a rise in profit (EBITDA) to £13m in 2012 (2011: £12m) while the group’s continued expansion created 350 new jobs over the 12 months, taking its employee base to 1,150.
The business, which last year announced a five-year agreement with Starbucks to open 100 additional drive-thrus, also said its roll-out plan was firmly on track with 20 outlets already trading successfully.
Commenting on future expansion, it said it had built a significant pipeline of site acquisition opportunities which it would be pursuing in the current financial year. Last year, Euro Garages agreed a £110m lending facility with Lloyds Bank Wholesale Banking & Markets to accelerate its consolidation of the forecourt sector.
Zuber Issa, CEO of Euro Garages, said:
“Despite challenging conditions for retailers across the UK, we’ve continued to make excellent progress in growing sales from our existing estate and improving margins. This is testament to the quality of our forecourt offering, the strength of partnership brands, our value for money proposition and the standard of customer service delivered by our people on the front line.”
Moshin Issa, Managing Director of Euro Garages, added:
“Retail and fast food continue to represent a significant growth opportunity for our business and have been a driving force behind the increase in sales and profit performance in the last financial year. This, combined with new innovations on the forecourt, remains a primary focus as we continue to expand the estate across the UK in 2013 and beyond.”
