Franchise deals fuel growth for Euro Garages

COFFEE and fast food continues to drive growth at petrol station operator Euro Garages.

The Blackburn group has franchise agreements with Starbucks and Subway and plans to have 45 of each brand open across its 120-strong portfolio by the end of the year.

Figures released by the company, ahead of a filing at Companies House, show total non-fuel sales in the year to the end of July were £73m, up 36%. This included an 83% rise in fast-food revenue.

Overall, sales grew 40% to £439m, helped by the acquisition in February of 45 Esso service stations. Earnings before interest, tax, depreciation and amortisation (ebitda) for the year increased 38% to £18m. A pre-tax profit figure was not available. Staff numbers grew by 650 to 1,800 and the company expects to hire a further 600 staff over the next two years.

Chief executive Zuber Issa said: “The fuel market remains a tough place to be, but we continue to outperform the sector with our best-in-class retail offering on all our forecourts and exemplary customer service. The acquisition and development of sites has been transformational, offering us an increased presence in key regions and a chance to strengthen our brand partners who share our forecourt convenience vision.
 
“Looking ahead, we continue to set ambitious targets and seek new locations for Euro Garages sites. By the end of 2014 we aim to have a portfolio of more than 210 forecourt locations supported by an ambitious capital expenditure programme.”