Coffee fuels Euro Garages’ earnings

COFFEE and fast food is driving sales at petrol sation operator Euro Garages.

The Blackburn-based group said earnings before, interest, tax, depreciation and amortisation (EBITDA) were up by 8% to £13m in the year to July thanks to strong revenues from its Starbucks, Subway and Burger King franchises.

Sales from these outlets were up 10%, while its SPAR convenience store network increased income by 2.5%. In contrast fuel volumes were marginally down, although a figure was not given.

Total sales rose 3% from £305m to £314m with non-fuel sales accounting for £55m, up £5m on last year.

Last year Euro Garages struck a five-year agreement with Starbucks to open 100 outlets. Some 20 are now trading and this expansion has added a further 350 staff, taking the total to 1,150. It is continuing to look for new sites funded by a £110m package it agreed with Lloyds last year.

Managing director Moshin Issa said: “Retail and fast food continue to represent a significant growth opportunity for our business and have been a driving force behind the increase in sales and profit performance in the last financial year.

“This, combined with new innovations on the forecourt, remains a primary focus as we continue to expand the estate across the UK in 2013 and beyond.”