Friday 23 August 2019

Applegreen trading 'in line with expectations' despite 'challenging' UK market

Ellie Donnelly

Ellie Donnelly

Forecourt giant Applegreen has said trading for the first five months of 2019 is "in line with expectations."

In the UK, the performance of Welcome Break has been "satisfactory".

This is despite more "challenging trading conditions in 2019 as ongoing uncertainty surrounding Brexit has impacted on consumer sentiment," Daniel Kitchen, chairman of Applegreen, said in a statement ahead of the group’s AGM today.

He added that the management team has successfully integrated this business, and the group continues to progress with the delivery of synergy benefits.

Last year the Irish forecourt retailer agreed to buy a 55.02pc stake in Welcome Break – which has a portfolio of 24 motorway service stations, two trunk road service areas, and 29 travel hotels under the Ramada and Days Inn brands.

Elsewhere, and the company said its legacy Applegreen business is performing “strongly” year-on-year.

“We are pleased with the performance of the business in Ireland where trading conditions remain good,” Mr Kitchen said.

Meanwhile, the group’s US business is performing “well”.

“We continue to explore new opportunities in this market,” Mr Kitchen added.

Subject to shareholder approval, the group intends to pay a final dividend of 0.91c per share later this month.

This will bring the total dividend for the financial year 2018 to 1.54c per share.

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