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Euro Garages confirms 38% boost in profits

13 January, 2014
Page 7 

A boost in profits of nearly 40% has been confirmed by Forecourt Trader of the Year winner Euro Garages, which attributes its success to a combination of strategic site acquisitions and the ongoing success of brand partnerships with Starbucks, Subway and Greggs. Reporting results for the year to July 31, 2013, the Blackburn-based company also revealed a similar increase in turnover of 40% to 439m (2012: 314m).

The Top 50 Indie said sales were boosted by strong organic growth across the core estate alongside the acquisition in February of 45 Esso service stations, which expanded its presence across the North West, North East, Yorkshire and North Wales.

Total non-fuel sales for the year were 73m, a rise of 36% year-on-year (2012: 54m). This included an 83% rise in fast-food revenue, with the underlying fast-food business showing double-digit growth.

Profit (EBITDA) increased to 18m, a rise of 38% on 2012's total of 13m.

During the year, Euro Garages' portfolio of forecourts increased to 120. The company rolled out 32 on-site Starbucks and 34 Subways.

All this growth has seen the headcount at Euro Garages rise by 650 to 1,800.

The company expects to sustain this growth and investment in people, with 600 new jobs planned in the next two years.