Fuel forecourt and service station operator Applegreen has reported higher profits and revenues for the year to the end of December, but cautioned that it expects a material reduction in profitability for the current financial year due to the outbreak of Covid-19.
Applegreen said its group revenue for 2019 jumped by 53% to €3.1 billion, while its group adjusted EBITDA soared by 141% to €140.4m.
The company reported like for like growth in fuel revenue of 10.8% and fuel gross profit of 7.4% at a constant currency basis.
During the year Applegreen continued its expansion and finished with 556 sites trading at the end of December.
As noted in Applegreen’s trading update earlier this week, the company had traded strongly and in line with management expectations for the first 10 weeks of 2020.
However, it said that footfall and volumes have been impacted in the last two weeks as governments and customers take increasing measures to contain the spread of the Covid-19 virus.
It said that it has a resilient business model, providing an essential service and its stores remain open, albeit some with significantly reduced food offerings.
The company said it was working hard to protect the health and safety of its employees and customers and as a result, it has implemented an extensive range of measures to safeguard both its staff and customers in each of the three countries in which it operates – Ireland, the UK and the US.
Applegreen today announced a range of short term measures to conserve cash. These include temporarily reducing its headcount by over 4,800 employees in both Ireland and UK, from a current total of 11,500 employees, under the respective government job retention schemes.
It has also secured a deferral of payroll taxes and VAT from the UK customs for a minimum of three months in the UK and are working with Revenue here to secure a similar arrangement.