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Applegreen PLC  -  APGN   

Final Results

Released 07:00 14-Mar-2017

RNS Number : 3315Z
Applegreen PLC
14 March 2017
 

 

Applegreen plc

Preliminary Statement of Results for the year ended 31 December 2016

 

Dublin, London, 14 March 2017:   Applegreen plc ('Applegreen' or 'the Group'), a major petrol forecourt retailer in the Republic of Ireland with growing operations in the United Kingdom and the United States, announces its preliminary results for the year ended 31 December 2016.

 

Financial highlights:

·     16% increase in gross profit on FY 2016 (20% in constant currency)

·     Adjusted EBITDA increased by 11% from €28.9m in FY 2015 to €32.0m in FY 2016 (14% on a constant currency basis)

·     Like for like growth in non-fuel gross profit (food and store) at constant currency of 9%

·     Revenue up 9% to €1,178m

·     Net debt position at 31 December 2016 of €19.4m

·     Maiden final dividend proposed of 1.25 cent per share

 

Operational highlights:

·     Grew estate to 243 sites as at 31 December 2016 (2015: 200)

·     Continued investment in the development of the network with capex for the year of €60.3m

·     Opened 32 new food outlets including the launch of a new food offering - Freshii

·     Site expansion with Cross America and 7-Eleven franchise underpinning USA development

·     Continued like for like growth in food across the estate

·     Strong consumer sentiment in Ireland while UK volumes positive in H2

·     Announced the proposed acquisition of 50% of the Joint Fuels Terminal in Dublin port

 

Key figures: 

 

 

31 Dec 2016

31 Dec 2015

Change

Gross profit

€145.8m

€125.9m

15.8%

Adjusted EBITDA1

€32.0m

€28.9m

10.7%

Adjusted PBT1

€21.0m

€17.7m

18.6%

 1. Adjusted for share based payments and non-recurring charges. Refer to glossary of terms for further information.

 

Commenting on the results, Bob Etchingham, CEO said: "We are pleased to report another strong set of results for the business. Our food and store sales were particularly strong in the Republic of Ireland during the year while the UK had a good performance in the second six months. Fuel margin was impacted by the rising oil price and in Ireland by the rising proportion of fuel card of the total fuel volume. The UK's decision to exit the EU has resulted in a weaker sterling which has impacted on the consolidated euro results for the company. To date this decision has had no further impact on the business."

 

"The business maintained its rate of expansion during 2016 growing the network by 28 company owned sites and 15 dealer sites. Apart from dealer sites, the main area of network expansion has been the UK with fifteen additional sites including two service areas, one Motorway Service Area ('MSA') and one Trunk Road Service Area ('TRSA'). In addition, two Petrol Filling Stations ('PFSs') were upgraded to TRSAs. In Ireland, eight sites were added comprising three TRSAs and five PFSs while one PFS was disposed of and one PFS was upgraded to a TRSA. In the USA, an additional site was added in Long Island while five sites were taken over in New England as part of a nine site deal with CrossAmerica Partners. We also added Freshii and, in the USA, 7-Eleven as franchise partners during the year further enhancing our retail and food to go offer."

 

"We are delighted that the quality of our sites has received strong industry recognition during the year earning several awards including the prestigious NACS Insight 2016 International Convenience Retailer of the Year Award for our Lisburn site on the M1 south of Belfast." 

 

"We are pleased to announce the introduction of a maiden dividend of 1.25c per share subject to approval at our AGM. 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."

 

"We continue to see opportunities for growth across our markets and have added 12 sites since the start of the year. Our core Irish market is delivering good growth in non-fuel sales in particular while fuel margin experience has been in line with 2016.  The UK has also begun the year positively and whilst mindful of the uncertainties created by the Brexit process we expect to continue to grow our operations during the year."

About Applegreen

 

Established in 1992, Applegreen is a major petrol forecourt retailer in the Republic of Ireland with a significant and growing presence in the United Kingdom, and an evolving presence in the USA. As at 31 December 2016, the business employed c. 3,400 people, and operated 243 forecourt sites across the UK, Ireland and the USA. 

 

Applegreen is the number one Motorway Service Area operator in the Republic of Ireland while occupying a leading position in the Irish petrol forecourt sector. The Group offers a distinctive convenience retail offering in the forecourt space with three key elements:

·     A "low fuel prices, always" price promise to drive footfall to the stores

·     A "Better Value Always" tailored retail offer, and

·     A strong food and beverage focus aiming to offer premium products and service to the customer.

 

Applegreen has a number of strategic partnerships with international brands including Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii and 7-Eleven.  The business also has its own food offer through the aCafé and Bakewell café brands. 

 

Applegreen's growth strategy is focused on acquiring and developing new sites in the markets in which it operates and on upgrading and rebranding existing sites.

 

 

Conference call details - analysts and institutional investors

 

Applegreen plc will host a conference call for analysts and institutional investors today, 14 March, 2017 at 08.30 GMT.  Presentation will be available on www.applegreenstores.com.  Dial in details are as follows:

 

Ireland Telephone Number:                       +353 (0)1 2465621

UK Telephone Number:                               + 44 (0)330 336 9411

Passcode:                                                         9487979

 

For further enquiries, please contact:

 

Applegreen

Bob Etchingham, CEO / Paul Lynch CFO                                                 +353 (0) 1 512 4800

 

Drury Porter Novelli:

Paddy Hughes                                                                                               +353 (0) 1 260 5000

 

Shore Capital

Stephane Auton                                                                                            +44 (0) 20 7408 4090

Patrick Castle

 

Goodbody

Joe Gill                                                                                                             +353 (0) 1 667 0420

Siobhan Wall

 

 

 

 

Applegreen FY 2016 Performance Overview and Outlook

 

2016 was another successful year of growth for the Group driven by strong like for like growth in food and store and additional contribution from new sites across the Group's portfolio.

 

Our upgrade and rebranding activity, together with an improving economic backdrop, saw like for like food and store sales grow by 7.1% on a constant currency basis, with related gross profit up by 8.9%.

 

The increasing proportion of fuel cards of total fuel volume together with increasing oil prices throughout the period had a negative impact on fuel margin in Ireland although the fuel card volume would have been positive for the strong non-fuel sales.

 

During the period we expanded our portfolio with 43 new sites, including 22 in the ROI, 15 in the UK and six in the USA. 28 of these were company owned sites, including five Service Areas and 23 petrol filling stations and 15 were dealer sites. The dealer business provides fuel to independent operators.  The canopy and pumps on these dealer locations are branded Applegreen while the non-fuel revenue remains under the control of the operator of the site.

 

We continued our rebranding and upgrade programme with 19 sites completed in 2016, adding one or more new food outlets at each site. We also expanded our range of food outlets by 32 introducing a new food offer - Freshii as well as launching the 7-Eleven franchise in the USA. This added to our existing portfolio of own brands and international brands including Subway, Costa Coffee, Burger King, Lavazza, Chopstix and Greggs.

 

Republic of Ireland

 

In the twelve months to 31 December 2016, revenue in the Republic of Ireland increased by 11.4% and gross profit increased by 15.0%. Like for like food and store sales increased year on year by 9.3% and related gross profit grew by 10.2%. Total fuel gross profit increased by 8.0% compared to 2015 but on a like for like basis declined by 4.8%. This reflected the impact of the rising oil price throughout the year as well as the growth of fuel card volume, which has a lower margin than retail fuel. The rise in fuel card volume did help drive the strong non-fuel performance.

 

During the year, we expanded our Republic of Ireland estate by 22 including 15 dealer sites.

 

We opened four new TRSAs including the upgrade of an existing PFS in Birr, Co. Offaly. The other TRSAs were in Meath, Louth and Tullamore, Co. Offaly. We added 5 petrol filling stations, two in Dublin with the remainder in the southern half of the country.

 

The addition of 15 new dealer sites during the period brings our total dealer portfolio to 48 by the end of the year.  The dealer business now accounts for 16% of the total ROI fuel volumes.

 

During the year, 11 sites were rebranded and upgraded incorporating at least one new food offer in all cases. 70% of the ROI Company owned estate is now branded Applegreen.

 

Our fuel card volumes more than doubled and now account for 7% of ROI fuel volumes.

 

At the beginning of 2017, we entered into a conditional agreement to acquire a 50% share in the Joint Fuels Terminal in Dublin port from the Topaz Energy Group for a consideration of €15.7m. The acquisition is subject to the satisfaction of a number of conditions including the approval of the Competition and Consumer Protection Commission and is expected to complete in Q2 2017. This transaction should enhance the competitiveness of our supply and provide further scope for the development of our Irish fuel business.

 

United Kingdom

 

Revenue increased by 17.1% and gross profit by 28.8% on a constant currency basis largely due to the continued expansion of the UK estate. Combined food and store sales and gross profit rose year on year on a constant currency basis by 32.9% and 42.1% respectively. On a like for like constant currency basis non-fuel sales were flat while related gross profit grew by 3.9% reflecting strong growth in food and better margins in store.

 

Like for like (constant currency) fuel gross profit for the year was down 0.6% (-1.1% in H1) reflecting an improving competitive environment in the second half of the year.

 

There was a strong focus by the Group on expansion within the United Kingdom in 2016 with a total capex spend of €26.0m.

 

Four new Service Area sites were opened in the UK including a new MSA heading south of Belfast, a new TRSA in Ballymena Northern Ireland and the conversion of two of our existing PFSs to TRSAs. We were very pleased that our Lisburn forecourt, on the M1 South of Belfast, was awarded the prestigious NACS Insight 2016 International Convenience Retailer of the Year Award.

 

We are building a good pipeline of TRSAs and MSAs in the UK, which are at various stages of planning.  

 

We have also developed our relationship with Costa Coffee in the UK and opened our first Costa Coffee café as part of a site upgrade to TRSA in December 2016. The second such café opened in February 2017.

 

13 new PFSs were opened in the UK with a further seven existing stations being rebranded and expanded through the addition of new food offerings. 35% of our UK estate is now branded Applegreen.

 

USA

During the year the Group added 1 new forecourt in Long Island. We also signed an agreement with CrossAmerica Partners to lease nine sites in the New England area.  Five of these sites were taken over in 2016. This now brings the total number of trading forecourts in the USA to 11. In addition, we signed a franchise agreement with 7-Eleven. Our store in Hempstead, Long Island has been redeveloped in 2016 and is now trading as 7-Eleven.

We have confidence that the USA market represents a viable region for further development noting an ample supply of expansion opportunities and an under developed retail model in some regions.

We are continuing to invest in the USA with a capex spend of €1.0m in 2016 and are strengthening the organisational structure in the USA to ensure ongoing support for further growth and expansion.

 

Costs

 

Selling and distribution expenses rose by 20.8% year on year. This is broadly in line with the 43 site additions in the year which resulted in a 21.5% increase in total site numbers.  Administrative expenses, excluding share based payment expense, non-recurring costs and depreciation, grew by 8.7% reflecting an increase in development spend and increased resource in the UK market in particular.

 

Dividend

 

The Board has proposed a maiden final dividend, subject to approval at the Company's AGM, of 1.25 cent per share (€1.0m) which will be paid on 29 June 2017 to shareholders on the register on 9 June 2017.

 

Outlook

 

We continue to develop our network in 2017 adding 12 sites in the year to date.  In the Republic of Ireland we have opened a new service area in Waterford and added a petrol filling station in Dublin. In the UK we have opened a new MSA in Lisburn heading north to Belfast and have also added three petrol filling stations as well as converting another of our petrol filling stations to a TRSA.  In the US we acquired two further sites as well as adding four new dealer sites.

 

We have a strong pipeline of further developments of both Service Area sites and petrol filling stations across our markets.

 

We are confident of making further progress during 2017. Our core Irish market is delivering good growth in non-fuel sales in particular while fuel margin experience has been in line with 2016.  The UK has also begun the year positively and while aware of the uncertainties created by the Brexit process we expect to continue to experience growth across our operations during the year.

 

 

UNAUDITED CONSOLIDATED INCOME STATEMENT

YEAR ENDED 31 DECEMBER 2016

 

 

Notes

 2016

 

 2015

 

 

€000

 

€000

Revenue

 

1,177,642

 

1,081,494

Cost of sales

5

(1,031,865)

 

(955,595)

Gross Profit

 

145,777

 

125,899

 

 

 

 

 

Selling and distribution costs

5

(103,947)

 

(86,067)

Administrative expenses

5

(24,004)

 

(24,321)

Other income

 

1,166

 

953

Finance costs

6

197

 

(2,877)

Finance income

6

325

 

334

Profit before income tax

 

19,514

 

13,921

 

 

 

 

 

Income tax expense

7

(2,280)

 

(1,917)

Profit for the financial year

 

17,234

 

12,004

 

Earnings per share from continuing operations attributable to the owners of the parent company during the year

 

 

 

 

 

Earnings per share - Basic

4

21.52c

 

17.07c

Earnings per share - Diluted

4

20.63c

 

16.29c

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2016

 

 

 2016

 

2015

 

€000

 

€000

Profit for the financial year

17,234

 

12,004

Other comprehensive expense

 

 

 

Items that may be reclassified to profit or loss

 

 

 

Currency translation differences on foreign operations

(3,720)

 

(138)

Other comprehensive expense for the year, net of tax

(3,720)

 

(138)

Total comprehensive income for the year

13,514

 

11,866

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2016

 

Assets

Notes

2016

 

 2015

Non-current assets

 

€000

 

€000

Intangible assets

8

2,757

 

1,660

Property, plant and equipment

9

219,226

 

182,249

Investment in associates

 

-

 

-

Trade and other receivables

11

373

 

224

Deferred income tax asset

 

4,103

 

2,962

 

 

226,459

 

187,095

Current assets

 

 

 

 

Inventories

10

30,273

 

24,076

Trade and other receivables

11

19,726

 

15,270

Assets classified as held for sale

 

165

 

-

Current income tax receivables

 

80

 

180

Cash and cash equivalents

12

29,374

 

49,297

 

 

79,618

 

88,823

Total assets

 

306,077

 

275,918

 

 

 

 

 

Equity and Liabilities

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

Issued share capital

15

805

 

796

Share premium

 

140,268

 

139,427

Capital contribution

 

512

 

512

Merger reserve

 

(65,537)

 

(65,537)

Currency translation reserve

 

(4,049)

 

(329)

Share based payment reserve

 

5,349

 

2,991

Retained earnings

 

37,663

 

20,429

Total equity

 

115,011

 

98,289

 

 

 

 

 

Non-current liabilities

 

 

 

 

Trade and other payables

14

5,704

 

5,624

Borrowings

13

42,950

 

47,766

Deferred income tax liabilities

 

5,123

 

4,692

 

 

53,777

 

58,082

Current liabilities

 

 

 

 

Trade and other payables

14

130,948

 

113,246

Borrowings

13

5,849

 

6,214

Current income tax liabilities

 

492

 

87

 

 

137,289

 

119,547

Total liabilities

 

191,066

 

177,629

 

 

 

 

 

Total equity and liabilities

 

306,077

 

275,918

 

 

UNAUDITED Consolidated statement of changes in equity

AS AT 31 DECEMBER 2016

 

 

Issued capital

Share premium

 

 

Capital Contribution

Merger reserve

Foreign currency translation reserve

Share based payment reserve

Retained earnings

Total

 

€000

€000

€000

€000

€000

€000

€000

€000

 

 

 

 

 

 

 

 

 

At 01 January 2015

600

67,574

-

(65,537)

(191)

332

14,877

17,655

Profit for the year

-

-

-

-

-

-

12,004

12,004

Other comprehensive income

-

-

-

-

(138)

-

-

(138)

Share based payments

-

-

-

-

-

2,659

-

2,659

Issue of ordinary share capital

196

71,853

-

-

-

-

(4,578)

67,471

Redemption of ordinary share capital

-

-

-

-

-

-

(1,874)

(1,874)

Capital Contribution

-

-

512

-

-

-

-

512

At 01 January 2016

796

139,427

512

(65,537)

(329)

2,991

20,429

98,289

Profit for the year

-

-

-

-

-

-

17,234

17,234

Other comprehensive income

-

-

-

-

(3,720)

-

-

(3,720)

Share based payments

-

-

-

-

-

2,358

-

2,358

Issue of ordinary share capital (note 15)

9

841

-

-

-

-

-

850

At 31 December 2016

805

140,268

512

(65,537)

(4,049)

5,349

37,663

115,011

 

 

UNAUDITED Consolidated statement of cash flows

YEAR ENDED 31 DECEMBER 2016

 

Notes

2016

 

2015

Cash flows from operating activities

 

€000

 

€000

Profit before income tax

 

19,514

 

13,921

Adjustments for:

 

 

 

 

Depreciation and amortisation

5

11,162

 

8,663

Finance income

6

(325)

 

(334)

Finance costs

6

(197)

 

2,877

Net impairment of non current assets

5

368

 

(15)

Share based payment expense

5

1,441

 

2,667

Loss on the sale of property, plant and equipment

5

327

 

509

 

 

32,290

 

28,288

 

 

 

 

 

Increase in trade and other receivables

 

(4,734)

 

(4,642)

Increase in inventories

 

(7,386)

 

(4,526)

Increase in trade payables

 

28,923

 

17,672

Cash generated from operations

 

49,093

 

36,792

Income taxes paid

 

(1,404)

 

(2,941)

Net cash from operating activities

 

47,689

 

33,851

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(60,763)

 

(53,950)

Purchase of intangibles

 

(1,371)

 

(867)

Proceeds from sale of property, plant and equipment

 

423

 

48

Interest received

 

190

 

200

Net cash used in investing activities

 

(61,521)

 

(54,569)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from long-term borrowings

 

-

 

9,563

Redemption of share capital

 

-

 

(1,874)

Proceeds from issue of ordinary share capital

 

850

 

67,471

Contributions from shareholders

 

-

 

512

Repayment of borrowings

 

(3,305)

 

(16,600)

Payment of finance lease liabilities

 

(1,028)

 

(1,298)

Interest paid

 

(1,907)

 

(2,347)

Net cash used in financing activities

 

(5,390)

 

55,427

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

(19,222)

 

34,709

Cash and cash equivalents at beginning of year

 

47,245

 

12,266

Exchange gains

 

(284)

 

270

Cash and cash equivalents at end of year

12

27,739

 

47,245

 

 

 

 

 

 

Notes to the unaudited consolidated financial information

 

1.    General information and basis of preparation

Applegreen plc ('the Company') is a company incorporated in the Republic of Ireland. The Unaudited Consolidated Financial Information of the Company for the year ended 31 December 2016 (the 'Financial Information') include the Company and its subsidiaries (together referred to as the 'Group'). The company is incorporated and tax resident in Ireland. The address of its registered office is Block 17, Joyce Way, Parkwest, Dublin 12.

 

The Consolidated Financial Statements of the Group are prepared in accordance with Irish law and International Financial Reporting Standards ('IFRS') and their interpretations issued by the International Accounting Standards Board ('IASB') and adopted by the European Union ('EU'). The financial information in this report has been prepared in accordance with the Group's accounting policies. Full details of the accounting policies adopted by the Group are contained in the Consolidated Financial Statements included in the Group's annual report for the year ended 31 December 2015 which is available on the Group's website; http://applegreenstores.com.

 

The accounting policies and methods of computation and presentation adopted in the preparation of the Financial Information are consistent with those described and applied in the annual report for the year ended 31 December 2015 except as explained in Note 2 below. There are no new IFRSs or interpretations effective from 01 January 2016 which have had a material effect on the financial information included in this report.

 

The financial information presented in this report does not represent full statutory accounts. The preliminary release was approved by the Board of Directors. The annual report and accounts will be approved by the Board of Directors and reported on by the auditors in due course. Accordingly, the financial information is unaudited. Full statutory accounts for the year ended 31 December 2015 have been filed with the Irish Registrar of Companies. The audit report on those statutory accounts was unqualified.

 

The Financial Information is presented in Euro, rounded to the nearest thousand, which is the functional currency of the parent company and also the presentation currency of the Group.

 

The preparation of the Financial Information requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results could differ materially from these estimates. In preparing the Financial Information, the critical judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2015 as set out on pages 59 to 67 in those financial statements.

 

 

 

Notes to the unaudited consolidated financial information

 

2. Significant accounting policies

The accounting policies applied in the Financial Information are consistent with those applied in the consolidated financial statements as at and for the year ended 31 December 2015, and are described in those financial statements on pages 59 to 66, except for the impact of the standard described below.

 

Following a review of the intercompany balances within the Group, a number of loans were identified as an extension of Applegreen plc's net investment in foreign operations. As there was and continues to be no intention for these loans to be repaid in the foreseeable future, these loans were considered quasi equity.

 

In accordance with IAS 21, foreign exchange gains and losses arising on the retranslation of 'quasi equity' loans are recorded in the Consolidated Statement of Comprehensive Income rather than the Consolidated Income Statement. This has increased the charge in the Consolidated Statement of Comprehensive Income by €3.2m for the year ended 31 December 2016.

 

3. Segmental analysis

Applegreen plc is a forecourt retail business headquartered in Dublin, Ireland. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM has been identified as the Board of Executive Directors.

 

The board considers the business from both a geographic and product perspective. Geographically, management considers the performance in Ireland, the UK and the USA. From a product perspective, management separately considers retail activities in respect of the sale of fuel, food and other groceries within Ireland and the UK and fuel and other grocery in the USA.

 

The Group is organised into the following operating segments:

Retail Ireland - Involves the sale of fuel, food and store within the Republic of Ireland.

Retail UK - Involves the sale of fuel, food and store within the United Kingdom.

Retail USA - Involves the sale of fuel and store within the United States of America.

 

The CODM monitors Revenue and Gross Profit of segments separately in order to allocate resources between segments and to assess performance.

 

Information regarding the results of each reportable segment is included within this note. Segment performance measures are revenue and gross profit as included in the internal management reports that are reviewed by the executive directors. These measures are used to monitor performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. The CODM also reviews adjusted EBITDA on a consolidated basis. Assets and liabilities are reviewed by the CODM for the Group in its entirety and as such segment information is not provided for these items.

 

 

 

 

Notes to the unaudited consolidated financial information

 

3. Segmental analysis (continued)

 

Analysis of Revenue and Gross Profit

2016

IRL

UK

USA

Total

Revenue

€000

€000

€000

€000

Fuel

515,762

405,517

16,240

937,519

Food

68,019

17,223

4

85,246

Store

109,652

42,332

2,893

154,877

 

693,433

465,072

19,137

1,177,642

Gross Profit

 

 

 

 

Fuel

32,405

18,699

1,892

52,996

Food

39,444

8,640

-

48,084

Store

31,525

12,208

964

44,697

 

103,374

39,547

2,856

145,777

 

 

 

 

 

 

Analysis of Revenue and Gross Profit

2015

IRL

UK

USA

Total

Revenue

€000

€000

€000

€000

Fuel

472,345

397,874

9,081

879,300

Food

55,835

11,661

-

67,496

Store

94,332

38,946

1,420

134,698

 

622,512

448,481

10,501

1,081,494

Gross Profit

 

 

 

 

Fuel

29,994

18,094

947

49,035

Food

32,484

5,380

-

37,864

Store

27,387

11,186

427

39,000

 

89,865

34,660

1,374

125,899

 

Reconciliation of profit before income tax to earnings before interest, tax, depreciation and amortisation (EBITDA), share based payments and other non-recurring charges (Adjusted EBITDA)

 

 

Notes

2016

 

2015

 

 

€000

 

€000

Profit before income tax

 

19,514

 

13,921

Depreciation

5

10,890

 

8,484

Amortisation

5

272

 

179

Net impairment charge

5

368

 

(15)

Net finance cost

6

(522)

 

2,543

EBITDA

 

30,522

 

25,112

Share based payments

5

1,441

 

2,667

Non-recurring charges

5

-

 

1,118

Adjusted EBITDA

 

31,963

 

28,897

 

 

 

 

Notes to the unaudited consolidated financial information

 

4. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year.

 

Basic earnings per share

 2016

 

 2015

Profit from continuing operations attributable to the owners of the Company (€'000)

17,234

 

12,004

Weighted average number of ordinary shares in issue for basic earnings per share ('000)

80,077

 

70,339

Earnings per share - Basic (cent)

21.52

 

17.07

 

 

 

 

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares which comprise share options issued under the share incentive plan.

 

Diluted earnings per share

2016

 

2015

Profit from continuing operations attributable to the owners of the Company (€'000)

17,234

 

12,004

Weighted average number of ordinary shares in issue for basic earnings per share ('000)

80,077

 

70,339

Adjusted for:

 

 

 

Share options ('000)

3,471

 

3,339

Weighted average number of ordinary shares for diluted earnings per share ('000)

83,548

 

73,678

Earnings per share - Diluted (cent)

20.63

 

16.29

 

 

 

Notes to the unaudited consolidated financial information

 

5. Expenses

Profit before tax is stated after charging/(crediting):

 

2016

 

2015

 

€000

 

€000

Cost of inventory recognised as expense

1,011,203

 

941,089

Other external charges

20,662

 

14,506

Employee benefits

63,994

 

38,829

Licensee payroll costs (1)

-

 

12,394

Share based payment charge (2)

1,441

 

2,667

Operating leases

13,912

 

12,568

Amortisation of intangible assets

272

 

179

Depreciation of property, plant and equipment

10,890

 

8,484

Net foreign exchange loss

381

 

146

Impairment charge

1,510

 

654

Impairment reversal

(1,142)

 

(669)

Loss on disposal of assets

327

 

509

Utilities

5,560

 

5,247

Rates

4,818

 

4,309

Non recurring charges (3)

-

 

1,118

Other operating charges

25,988

 

23,953

 

1,159,816

 

1,065,983

 

(1) From 01 January 2016, licensee staff have become employees of the Group. As a result their payroll costs have included in employee benefits above.

 

(2) Included in the charge of €1.4m for share based payments is a charge of €0.5m in respect of share options granted during the year under a new share option scheme.

 

(3) Non-recurring charges for the year ended 31 December 2015 comprise provision in respect of uncertain payroll tax positions with Revenue authorities and a one off payment made by the Group's principal shareholders to employees subsequent to the Group's IPO.

 

6. Finance costs and income

 

2016

 

2015

Finance costs

€000

 

€000

Bank loans and overdrafts

1,485

 

2,266

Variance on translation of foreign borrowings *

(1,724)

 

585

Lease finance charges and hire purchase interest

308

 

434

Borrowing costs capitalised

(266)

 

(408)

Finance costs

(197)

 

2,877

 

Finance income

 

 

 

Interest income on loans to associate

(321)

 

(321)

Interest income on loans to directors

-

 

(13)

Interest income on loans to staff

(4)

 

-

Finance income

(325)

 

(334)

Net finance (income)/cost

(522)

 

2,543

 

* The foreign exchange gains of €1.7m arises primarily in respect of non-Euro denominated debt.

 

Notes to the unaudited consolidated financial information

 

7. Taxation

 

2016

 

2015

Current tax

€000

 

€000

Current tax expense - Ireland

834

 

1,022

Current tax expense - overseas

860

 

370

Adjustments in respect of previous periods

216

 

40

Total current tax

1,910

 

1,432

Deferred tax

 

 

 

Origination and reversal of temporary differences

333

 

485

Changes in overseas tax rates

37

 

-

Total deferred tax

370

 

485

Total tax

2,280

 

1,917

 

The total tax expense can be reconciled to accounting profit as follows:

 

 

2016

 

2015

 

€000

 

€000

Profit before tax from continuing operations

19,514

 

13,921

Income tax at 12.5%

2,439

 

1,740

 

 

 

 

Non tax deductible expenses

342

 

975

Non-taxable income

(1,039)

 

(991)

Income taxable at higher rates

322

 

153

Adjustments in respect of previous periods

216

 

40

Total current tax expense

2,280

 

1,917

 

8. Intangible assets

 

Operating agreements

Franchises

Licences

Assets under construction

Total

Cost

€000

€000

€000

€000

€000

At 01 January 2016

235

755

1,344

-

2,334

Translation adjustment

-

(12)

(7)

-

(19)

Additions

295

414

185

512

1,406

Disposals

(12)

-

(9)

-

(21)

At 31 December 2016

518

1,157

1,513

512

3,700

 

 

 

 

 

 

Amortisation

 

 

 

 

 

At 01 January 2016

24

175

475

-

674

Translation adjustment

-

(1)

(1)

-

(2)

Disposals

(1)

-

-

-

(1)

Amortisation charge

75

55

142

-

272

At 31 December 2016

98

229

616

-

943

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

31 December 2016

420

928

897

512

2,757

01 January 2016

211

580

869

-

1,660

 

Notes to the unaudited consolidated financial information

 

9. Property, plant and equipment

 

Land and Buildings

Plant and equipment

Fixtures, fittings and motor vehicles

Computer hardware and software

Assets under construction

Total

Cost

€000

€000

€000

€000

€000

€000

At 01 January 2016

141,596

11,927

53,428

8,079

19,920

234,950

Translation adjustment

(6,054)

(353)

(2,462)

(267)

(1,512)

(10,648)

Additions

23,459

4,725

18,587

2,999

9,126

58,896

Disposals

(1,482)

(144)

(681)

(101)

(392)

(2,800)

Reclassifications

8,897

144

444

13

(9,498)

-

At 31 December 2016

166,416

16,299

69,316

10,723

17,644

280,398

 

 

 

 

 

 

 

Depreciation/Impairment

 

 

 

 

 

 

At 01 January 2016

31,788

1,912

16,161

2,840

-

52,701

Translation adjustment

(905)

(27)

(520)

(95)

-

(1,547)

Charge for the year

2,518

754

5,920

1,698

-

10,890

Disposals

(946)

(41)

(217)

(36)

-

(1,240)

Impairment charge

1,049

151

254

22

-

1,476

Impairment reversal

(1,014)

(6)

(88)

-

-

(1,108)

At 31 December 2016

32,490

2,743

21,510

4,429

-

61,172

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

31 December 2016

133,926

13,556

47,806

6,294

17,644

219,226

01 January 2016

109,808

10,015

37,267

5,239

19,920

182,249

 

Assets under construction as at 31 December 2016 includes the following significant projects; five service stations in the Republic of Ireland (€8.4m), two motorway services areas in Northern Ireland (€6.3m) and one service station in the UK (€0.5m). The remaining amounts relate to several other developments across all regions.

 

Notes to the unaudited consolidated financial information

 

10. Inventories

 

2016

 

2015

 

€000

 

€000

Raw materials and consumables

981

 

885

Finished goods

29,292

 

23,191

 

30,273

 

24,076

 

The cost of inventories recognised as an expense and included in 'cost of sales' amounted to €1,011m (2015: €941m).

 

11. Trade and other receivables

 

2016

 

2015

Current

€000

 

€000

Trade receivables

4,834

 

3,058

Provision for impairment

(265)

 

(221)

Deposits received from customers

(45)

 

(42)

Net trade receivables

4,524

 

2,795

Accrued income

2,561

 

1,697

Prepayments

3,455

 

3,687

Other debtors

5,161

 

3,903

Withholding tax receivable

24

 

325

VAT receivable

1,355

 

1,613

Amounts due from related companies

2,646

 

1,250

 

19,726

 

15,270

Non-current

 

 

 

Other debtors

373

 

224

 

373

 

224

 

Current trade and other receivables are non-interest bearing and are generally less than 30 day credit terms. Non-current debtors relates to loans advanced to our dealer network. The fair values of non-current trade and other receivables is equivalent to their carrying value. The fair value has been determined on the basis of discounted cash flows.

 

 

Notes to the unaudited consolidated financial information

 

12. Cash and cash equivalents

Cash and cash equivalents included in the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows are analysed as follows:

 

 

2016

 

2015

 

€000

 

€000

Cash at bank

21,002

 

44,766

Cash in transit

8,372

 

4,531

Cash and cash equivalents (excluding bank overdrafts)

29,374

 

49,297

 

Cash and cash equivalents include the following for the purposes of the statement of cash flows:

 

 

2016

 

2015

 

€000

 

€000

Cash and cash equivalents

29,374

 

49,297

Bank overdrafts (note 13)

(1,635)

 

(2,052)

 

27,739

 

47,245

 

13. Borrowings

 

2016

 

2015

Current

€000

 

€000

Bank overdrafts

1,635

 

2,052

Bank loans

3,465

 

3,194

Finance leases

749

 

968

 

5,849

 

6,214

Non-current

 

 

 

Bank loans

39,723

 

44,903

Finance leases

3,227

 

2,863

 

42,950

 

47,766

Total borrowings

48,799

 

53,980

 

In March 2015, the Group entered into new banking arrangements with its senior lenders, Allied Irish Bank plc and Ulster Bank Ireland. These new agreements extend the maturity of the Group's debt and make additional facilities available to the Group.

 

 

 

Notes to the unaudited consolidated financial information

 

14. Trade and other payables

 

 

2016

 

2015

Current

€000

 

€000

Trade payables and accruals

126,105

 

107,641

Other creditors

1,073

 

618

Deferred income

1,045

 

879

Value added tax payable

396

 

278

Other taxation and social security

1,910

 

1,717

Amounts due to licensees

-

 

1,886

Amounts due to related parties

419

 

227

 

130,948

 

113,246

 

Deferred income

5,704

 

5,624

 

5,704

 

5,624

 

15. Share capital

 

Ordinary

 

No.

 

Authorised Shares of €0.01 each

 

 

 

At 31 December 2015

100,000,000

 

1,000,000

At 31 December 2016

100,000,000

 

1,000,000

 

 

 

 

Issued Shares of €0.01 each

 

 

 

At 01 January 2016

79,621,053

 

796,210

Allotted

850,000

 

8,500

At 31 December 2016

80,471,053

 

804,710

 

850,000 share options with an exercise price of €1.00 were exercised. Share premium of €841,500 was recorded on these shares.

 

16. Post period end events

Since the year end, the Group has added one new service area, one petrol filling station and four new dealer sites in the Republic of Ireland, one new service area in Northern Ireland, three petrol filling stations in the UK and two in the USA. The Group will continue to pursue new developments to enhance shareholder value, through a combination of organic growth, acquisitions and development opportunities.

 

The Group also entered into a conditional agreement to acquire a 50% share in the Joint Fuels Terminal in Dublin port from the Topaz Energy Group for a consideration of approximately €15.7m which will be funded from existing resources. The acquisition is subject to the satisfaction of a number of conditions including the approval of the Competition and Consumer Protection Commission.

 

The Directors have proposed a dividend in respect of the 2016 financial year of 1.25 cent per ordinary share, €1m in total. This dividend has not been provided for in the Group balance sheet as there was no present obligation to pay the dividend at the year end. The final dividend is subject to approval by the Company's shareholders at the Annual General Meeting.

 

Glossary of financial terms

The key financial terms used by the Group in this report are as follows:

 

Measure

 

Description

Constant currency

 

Constant currency measures eliminates the effects of exchange rate fluctuations that occur when calculating financial performance numbers. 

 

EBITDA and adjusted EBITDA

 

EBITDA is defined as earnings before interest, tax, depreciation, amortisation and impairment charges.

 

Adjusted EBITDA refers to EBITDA adjusted for share based payments and non-recurring items.

 

The adjusted EBITDA calculation can be found on page 14.

 

Adjusted PBT

Adjusted PBT is defined as profit before tax adjusted for share based payments and non-recurring items.

 

Adjusted PBT is calculated as follows:

 

2016

 

2015

 

€000

 

€000

Profit before tax

19,514

 

13,921

Share based payments

1,441

 

2,667

Non-recurring charges

-

 

1,118

Adjusted PBT

20,955

 

17,706

 

Like for like

 

Like for like statistics measures the performance of stores that were open at 01 January 2015 and excluding any stores that were closed or divested since that date.

 

Net debt position

 

Net debt position comprises current and non-current borrowings and cash and cash equivalents.

 

 

 


This information is provided by RNS
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