(Alliance News) - Applegreen PLC on Friday said acquisitions and expansions boosted its earnings growth in 2019 and it is confident going forward despite the coronavirus outbreak.
The stock was 15% higher in London in late morning trade at 227.00 pence a share.
The Irish petrol forecourt retailer reported revenue growth of 53% in 2019 to EUR3.07 billion from EUR2.01 billion a year prior, pushing a pretax profit higher to EUR37.2 million from EUR15.4 million.
Applegreen reported like-for-like growth in fuel revenue of 11% and like-for-like growth in non-fuel - food and store - revenue of 4.9%.
"We are very pleased with our trading performance and the strategic development of the group in 2019 where we successfully integrated a number of important acquisitions, expanded our footprint in the US and significantly reduced our reliance on fuel by continuing a shift in focus to convenience retail and food on the go," said Chief Executive Bob Etchingham.
Applegreen has not proposed a final dividend payment for 2019 due to the unprecedented environment in light of Covid-19.
The company said it expects a "material" reduction in profitability for 2020.
Applegreen said it has traded "strongly" and in line with management expectations for the first ten weeks of 2020. However, footfall and volumes have been hurt in the last two weeks as governments and customers take increasing measures to contain the spread of the Covid-19 virus.
As of Friday last week, the company said it had consolidated net external debt of EUR545.5 million.
"Our absolute focus at present is navigating the various issues associated with Covid-19 and to ensure we are looking after our people whilst continuing to deliver the essential service we provide to our customers," said Etchingham.
"We are highly conscious of the considerable uncertainty created by the current Covid-19 crisis but are confident in the defensiveness of our business model and the strength of our balance sheet and liquidity."
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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