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Fast food helps drive profits at Euro Garages

17 December, 2012
Page 7 

Growth in convenience retail and fast food sales boosted revenue at Top 50 Indie Euro Garages, according to its latest annual trading update.

Total sales for the Blackburn-based group rose to £314m (2011 £305m) in the 12 months to July 31, 2012.

It said sales at its Spar c-store network increased 2.5% while its fast food franchises, which include Starbucks, Subway and Burger King, were ahead by 10%. Combined, non-fuel revenue accounted for £55m of turnover (2011 £50m).

Euro Garages, which operates predominantly BP-branded forecourts, said fuel volumes were marginally behind last year, although they remained ahead of the overall market.

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.

Following its announcement of a five-year agreement with Starbucks to open 100 additional drive-thrus, Euro Garages said its roll-out plan was on track with 20 outlets already trading successfully.

The company has built a pipeline of site acquisition opportunities which it will be pursuing in the current financial year. Last year, it agreed a £110m lending facility with Lloyds Bank to accelerate its consolidation of the forecourt sector.