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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Applegreen Plc | LSE:APGN | London | Ordinary Share | IE00BXC8D038 | ORD EUR0.01 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 496.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAPGN
RNS Number : 4780B
Applegreen PLC
21 September 2018
Applegreen plc
Results for the six months ended 30 June 2018
Dublin, London, 21 September 2018: Applegreen plc ('Applegreen' or 'the Group'), a major service station retailer with operations in the Republic of Ireland, the United Kingdom and the United States announces its unaudited interim results for the six months ended 30 June 2018.
Financial highlights:
-- Group revenue increased by 27% on H1 2017 (EUR672.5m) to EUR854.9m (30% on a constant currency basis)
-- Adjusted EBITDA increased by 17% to EUR19.4m in H1 2018 from EUR16.6m in H1 2017 (18% on a constant currency basis)
-- Gross profit increased by 33% on H1 2017 (36% at constant currency) -- Like for like growth of 3.5% in non-fuel gross profit (food and store) at constant currency -- Continued investment in the network with capex for the period of EUR30.3m -- Net debt position at 30 June 2018 of EUR9.1m (31 December 2017: EUR10.2m) -- Interim dividend of 0.63 cent per share (H1 2017: 0.60 cent per share)
Operational highlights:
-- Grew the estate by 26 sites to 368 sites as at 30 June 2018 (31 December 2017: 342) -- Opened 14 new food outlets in the period to bring our total to 274 outlets
-- As previously indicated, severe weather in March disrupted activities in each of our three markets
-- Agreement to lease a network of 43 Petrol Filling Station sites in Florida from CrossAmerica Partners LP ("CAP"), expected to close in September 2018
Key figures:
30 June 2018 30 June Change 2017 Gross Profit (EURm) 109.2 82.2 32.8% Adjusted EBITDA* (EURm) 19.4 16.6 16.9% Adjusted Profit before Tax* (EURm) 10.1 10.1 0.0% Adjusted EPS 9.46 10.82 (12.6%) ----------------------------- ------------- -------- --------
*Adjusted for share based payments and non-recurring charges
Acquisition of a Majority Interest in Welcome Break:
The Group announced on 2 August 2018 (the "Acquisition Announcement"), that it had entered into contracts which, upon completion, would result in it holding a 50.01% stake in Welcome Break (the "Transaction"). Welcome Break is a leading UK Motorway Service Area operator with a portfolio of 24 MSAs, two TRSAs and 29 hotels across 35 locations in the United Kingdom. For further detail on the Transaction, which constitutes a reverse takeover under the ESM Rules for Companies and the AIM Rules for Companies, please see the Acquisition Announcement.
Management Comments:
Commenting on the results, Bob Etchingham, CEO said: "We are pleased with the performance of our business during 2018. Applegreen is entering an exciting phase of growth in the UK service area market with the recent announcement of the Welcome Break transaction. This will be transformational for Applegreen by giving us critical mass in a key market and is expected to close in Q4 2018."
"The business continued to expand in each of our three markets as we increased our estate by 26 sites to a total of 368 locations trading at the end of the period. We opened seven new sites in the Republic of Ireland, 15 in the UK and four in the US in H1 2018."
"Our financial performance for the first six months of 2018 has been robust notwithstanding the difficult trading conditions caused by the exceptional weather in March, especially in our Irish business. Apart from the impact of this one off event, the underlying business continues to perform well and we remain confident in the prospects for the business in 2018."
About Applegreen
Established in 1992, Applegreen is a major petrol forecourt retailer with operations in the Republic of Ireland, the United Kingdom and the USA. The Group is pursuing a growth strategy focused on acquiring and developing new Service Area and Petrol Filling Station sites in each of the three markets in which it operates. As at 30 June 2018, the business operated 368 forecourt sites and employed c5,300 people.
The Group offers a distinctive convenience retail offering with three key elements:
-- A "low fuel prices, always" price promise to drive footfall to the stores; -- A "Better Value Always" tailored retail offer; and
-- A strong food and beverage focus aiming to offer premium products and service to the customer.
Applegreen has a number of strategic partnerships with international brands including Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii and 7-Eleven. The business also has its own food offer through the Bakewell café brand.
Applegreen is the number one Motorway Service Area operator in the Republic of Ireland.
For further enquiries, please contact:
Applegreen
Bob Etchingham (CEO) +353 (0) 1 512 4800
Niall Dolan (CFO)
Drury Porter Novelli
Paddy Hughes +353 (0) 1 260 5000
Shore Capital
Stephane Auton +44 (0) 20 7408 4090
Patrick Castle
Goodbody
Joe Gill +353 (0) 1 667 0420
Siobhan Wall
Richard Tunney
Applegreen H1 2018 Performance Overview and Outlook
Growth in H1 2018 was driven by positive performance from the 2017 acquisitions and good like for like growth in food and store, notwithstanding the impact of severe weather during the period.
A strong economic backdrop, together with the full year impact of the 2017 site upgrade and rebranding activity, saw like for like food and store sales and gross profit grow by 3.5% on a constant currency basis.
During the period, we expanded our portfolio with 26 new sites, comprising seven in the ROI, 15 in the UK and four in the USA. Of the 26, three were dealer sites and 23 were company owned sites.
This development activity has resulted in 14 additional branded food offers being added to our estate in the period.
Republic of Ireland
In the period ended 30 June 2018, revenue in the Republic of Ireland increased by 5.8% and gross profit increased by 10.9%.
Total fuel gross profit increased by 9.1% compared to H1 2017 and increased by 3.7% on a like for like basis. This reflected the impact of additional contribution from the Joint Fuel Terminal acquisition in Dublin.
Like for like food and store sales increased year on year by 3.1% and related gross profit grew by 1.8%. This was against a backdrop of severe weather disruption in much of ROI in February and March which impacted food to go sales at Service Areas in particular.
Our dealer and fuel card volumes have continued to grow and now account for 31% of ROI fuel volumes on a combined basis.
During the period, we expanded our Republic of Ireland estate by seven sites which included two Service Area sites, two Petrol Filling Station sites and three dealer sites. 88% of the ROI estate is branded Applegreen (2017: 88%). There were a total of 184 sites trading at the end of the period.
United Kingdom
In the period ended 30 June 2018, revenue in the UK increased by 33.0% and gross profit by 26.5% largely due to the continued expansion of the estate (35.9% and 29.3%, respectively, on a constant currency basis).
Total fuel gross profit in the UK increased by 16.3% compared to H1 2017 and decreased by 6.6% on a like for like constant currency basis. The like for like performance was against a very strong comparative period in H1 2017 (where equivalent LFL growth was 18.6%) and reflects the competitive pricing pressures, weather disruption and rising oil commodity prices in H1 2018.
Conversely, the UK delivered a very strong performance in non-fuel where combined food and store sales and gross profit rose year on year by 32.5% and 36.6% respectively. On a like for like constant currency basis, these sales were 5.0% ahead of the same period last year while related gross profit grew by 9.8% reflecting good growth particularly in food.
The Group opened 15 new Petrol Filling Stations in the UK during the period. At 30 June 2018 there were 112 sites trading.
USA
During the period, the Group added four new sites in the USA, all of which were based in the North East, and had 72 sites trading in the USA at the end of the period.
Post period end, in August 2018, we completed the acquisition of a group of seven sites in Columbia, South Carolina which involved a leasehold arrangement with Getty Realty.
In June 2018 we announced an agreement to lease a network of 43 Petrol Filling Station sites located in Florida from CrossAmerica Partners LP ("CAP"). The sites have been taken over during September 2018.
Costs
Selling and distribution expenses, excluding rent and depreciation rose by 38.2% year on year due primarily to the site acquisitions in the US and UK in late 2017. In particular, the site additions in the US included a number of food offerings with associated payroll and utility costs which contributed to this increase.
Rent costs now incorporate lease rental for the South Carolina sites acquired in the Brandi transaction in Q4 2017.
Administrative expenses, excluding share based payment expense, non-recurring costs and depreciation grew by 27.6% driven by business growth, targeted marketing campaigns and further investment in management capacity.
Further Development Activities
We continue to develop our network in 2018 adding four new stand-alone sites since 30 June 2018 as well as completing the acquisitions of a seven site group based in South Carolina and a network of 43 Petrol Filling Station sites in Florida.
We have a good pipeline of further developments of both Service Area sites and Petrol Filling Stations across our markets.
Dividend
The Board has proposed a final dividend of 0.63 cent per share (H1 2017: 0.60 cent per share) which will be paid on 19 October 2018 to shareholders on the register as at 28 September 2018.
UNAUDITED CONSOLIDATED INCOME STATEMENT
PERIODED 30 JUNE 2018
6 months 6 months to 30 June to 30 June Notes 2018 2017 EUR000 EUR000 Revenue 854,932 672,511 Cost of sales 5 (745,749) (590,286) ------------ ------------ Gross profit 109,183 82,225 Selling and distribution costs 5 (82,595) (58,950) Administrative expenses 5 (18,265) (14,854) Other income 1,394 815 Finance costs 6 (819) (507) Finance income 6 232 184 Profit before income tax 9,130 8,913 Income tax expense 7 (1,385) (1,344) ------------ ------------ Profit for the financial period 7,745 7,569 ------------ ------------
Earnings per share from continuing operations attributable to the owners of the parent company during the period
Earnings per share - Basic 4 8.45c 9.39c Earnings per share - Diluted 4 8.34c 9.01c
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
PERIODED 30 JUNE 2018
6 months 6 months to 30 June to 30 June 2018 2017 EUR000 EUR000 Profit for the financial period 7,745 7,569 Other comprehensive income/(expense) Items that may be reclassified to profit or loss Currency translation differences on foreign operations 765 (1,495) ------------ ------------ Other comprehensive income/(expense) for the period, net of tax 765 (1,495) ------------ ------------ Total comprehensive income for the period 8,510 6,074 ------------ ------------
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
Assets Notes June 2018 Dec 2017 Non-current assets EUR000 EUR000 Intangible assets 8 20,283 16,150 Property, plant and equipment 9 317,160 299,574 Investment in joint venture 1,000 1,000 Trade and other receivables 11 407 422 Deferred income tax asset 6,528 5,718 ---------- --------- 345,378 322,864 ---------- --------- Current assets Inventories 10 39,966 35,228 Trade and other receivables 11 32,119 23,171 Current income tax receivables 88 88 Cash and cash equivalents 12 54,612 57,482 126,785 115,969 Total assets 472,163 438,833 ---------- --------- Equity and liabilities Equity attributable to owners of the parent Issued share capital 15 917 916 Share premium 190,630 190,464 Capital contribution 512 512 Merger reserve (65,537) (65,537) Currency translation reserve (6,053) (6,818) Share based payment reserve 9,100 8,181 Retained earnings 59,118 53,591 ---------- --------- Total equity 188,687 181,309 ---------- --------- Non-current liabilities Trade and other payables 14 5,347 5,534 Borrowings 13 55,171 63,132 Deferred income tax liabilities 7,701 7,854 ---------- --------- 68,219 76,520 ---------- --------- Current liabilities Trade and other payables 14 205,155 174,901 Borrowings 13 8,518 4,545 Current income tax liabilities 1,584 1,558 215,257 181,004 Total liabilities 283,476 257,524 ---------- --------- Total equity and liabilities 472,163 438,833 ---------- ---------
UNAUDITED Consolidated statement of changes in equity
AS AT 30 JUNE 2018
Capital Foreign Share contribution currency based Issued Share Merger translation payment Retained capital premium reserve reserve reserve earnings Total EUR000 EUR000 EUR000 EUR000 EUR000 EUR000 EUR000 EUR000 At 01 January 2017 805 140,268 512 (65,537) (4,049) 5,349 37,663 115,011 Profit for the period - - - - - - 7,569 7,569 Other comprehensive income - - - - (1,495) - - (1,495) ---------- ----------- -------------- ----------- ------------ ---------- ---------- -------- Total comprehensive income - - - - (1,495) - 7,569 6,074 Issue of ordinary share capital 3 347 - - - - - 350 Share based payments - - - - - 757 - 757 Dividends - - - - - - (1,009) (1,009) At 30 June 2017 808 140,615 512 (65,537) (5,544) 6,106 44,223 121,183 ---------- ----------- -------------- ----------- ------------ ---------- ---------- -------- At 01 January 2018 (as previously reported) 916 190,464 512 (65,537) (6,818) 8,181 53,591 181,309 Adjustment from adoption of IFRS 9 (note 2) - - - - - - (1,485) (1,485) ---------- ----------- -------------- ----------- ------------ ---------- ---------- -------- Adjusted balance at 01 January 2018 916 190,464 512 (65,537) (6,818) 8,181 52,106 179,824 Profit for the period - - - - - - 7,745 7,745 Other comprehensive income - - - - 765 - - 765 ---------- ----------- -------------- ----------- ------------ ---------- ---------- -------- Total comprehensive income - - - - 765 - 7,745 8,510 Issue of ordinary share capital (note 15) 1 166 - - - - - 167 Share based payments - - - - - 919 - 919 Dividends - - - - - - (733) (733) ---------- ----------- -------------- ----------- ------------ ---------- ---------- -------- At 30 June 2018 917 190,630 512 (65,537) (6,053) 9,100 59,118 188,687
---------- ----------- -------------- ----------- ------------ ---------- ---------- --------
UNAUDITED Consolidated statement of cash flows
PERIODED 30 JUNE 2018
Notes June 2018 June 2017 Cash flows from operating activities EUR000 EUR000 Profit before income tax 9,130 8,913 Adjustments for: Depreciation and amortisation 5 8,716 6,256 Finance income 6 (232) (184) Finance costs 6 819 507 Share based payment expense 5 349 757 Loss on the disposal of property, plant and equipment 5 8 255 ---------- 18,790 16,504 Increase in trade and other receivables (11,804) (2,657) (Increase)/decrease in inventories (4,587) 2,146 Increase in trade payables 30,636 4,362 ---------- ---------- Cash generated from operations 33,035 20,355 Income taxes paid (1,366) (583) ---------- Net cash from operating activities 31,669 19,772 ---------- Cash flows from investing activities Purchase of property, plant and equipment (27,232) (28,745) Purchase of intangibles (3,925) (2,388) Investment in joint venture - (1,000) Proceeds from sale of property, plant and equipment - 166 Interest received 300 - Net cash used in investing activities (30,857) (31,967) Cash flows from financing activities Proceeds from long-term borrowings 5,000 25,000 Proceeds from issue of ordinary share capital 167 350 Repayment of borrowings (11,520) (1,743) Payment of finance lease liabilities (374) (421) Interest paid (702) (770) Dividends paid - (1,009) Net cash (used in)/from financing activities (7,429) 21,407 Net (decrease)/increase in cash and cash equivalents (6,617) 9,212 Cash and cash equivalents at beginning of period 57,482 27,739 Exchange gains/(losses) 148 (311) Cash and cash equivalents at end of period 12 51,013 36,640 ---------- ----------
Notes to the unaudited consolidated financial information
1. General information and basis of preparation
Applegreen plc ('the Company') is a company incorporated in the Republic of Ireland. The Unaudited Consolidated Financial Information of the Company for the six months ended 30 June 2018 (the 'Financial Information') includes the Company and its subsidiaries (together referred to as the 'Group'). The Company is incorporated and tax resident in Ireland. The address of its registered office is Block 17, Joyce Way, Parkwest, Dublin 12.
The consolidated financial statements of the Group are prepared in accordance with Irish law and International Financial Reporting Standards ('IFRS') and their interpretations issued by the International Accounting Standards Board ('IASB') and adopted by the European Union ('EU'). The financial information in this report has been prepared in accordance with the Group's accounting policies. Full details of the accounting policies adopted by the Group are contained in the Consolidated Financial Statements included in the Group's annual report for the year ended 31 December 2017 which is available on the Group's website: http://applegreenstores.com.
The accounting policies and methods of computation and presentation adopted in the preparation of the Financial Information are consistent with those described and applied in the annual report for the financial year ended 31 December 2017 with the exception of the adoption of IFRS 9, Financial Instruments and IFRS 15, Revenue from Contracts with Customers which are described below. A number of other changes to IFRS became effective in 2018; however, they did not have a material effect on the condensed consolidated interim financial information included in this report.
The Interim Financial Statements do not constitute statutory financial statements. The statutory financial statements for the year ended 31 December 2017, extracts of which are included in these Interim Financial Statements, were prepared under IFRS as adopted by the EU and have been filed with the Companies Registration Office. The auditors' report on those financial statements was unqualified and did not contain an emphasis of matter paragraph.
The Financial Information is presented in Euro, rounded to the nearest thousand, which is the functional currency of the parent company and also the presentation currency of the Group.
The preparation of the Financial Information requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results could differ materially from these estimates. In preparing the Financial Information, the critical judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2017 as set out on pages 89 to 90 in those financial statements, with the addition of the following:
Impairment of financial assets:
The Group adopted IFRS 9 from 01 January 2018. IFRS 9 replaces the 'incurred loss' model in IAS 39 with an 'expected credit loss' (ECL) model. See below for further details. The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Group's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
Notes to the unaudited consolidated financial information
2. Significant accounting policies
The accounting policies applied in the Financial Information are consistent with those applied in the consolidated financial statements as at and for the year ended 31 December 2017, and are described in those financial statements on pages 79 to 88, except for the impact of the matters described below.
New standards adopted by the Group
The Group adopted IFRS 9, Financial Instruments, and IFRS 15, Revenue from Contracts with Customers, with effect from 01 January 2018.
IFRS 9 Financial Instruments
IFRS 9 replaces the provisions of IAS 39 Financial Instruments: Recognition and Measurement that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.
The adoption of IFRS 9 from 01 January 2018 resulted in changes in accounting policies and adjustments to the amounts recognised in the financial statements. The new accounting policies are set out in this note. In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated.
The total impact on the Group's retained earnings as at 01 January 2018 is as follows:
2018 EUR000 Opening retained earnings 01 January 2018 (before restatement for IFRS 9) 53,591 Gain from modification of financial liabilities (1) 877 Increase in provision for financial assets measured at amortised cost (2) (2,755) Increase in deferred tax relating to increase in provisions (2) 393 -------- Restated retained earnings 01 January 2018 (post restatement for IFRS 9) 52,106 --------
(1) The Group refinanced its borrowings during 2015. In accordance with IAS 39, the modification of the loan terms was not considered to result in an extinguishment of the initial borrowings. At the date of the modification no gain was recognised in profit or loss. Instead, the Group discounted the cash flows of the modified borrowings at a revised effective interest rate which meant that the impact of the changes in cash flows was recognised over the remaining modified term of the borrowings.
Under IFRS 9, the cash flows of the modified borrowings must be discounted at the original effective interest rate. This would have resulted in the recognition of an immediate gain in profit or loss at the date of the modification. As the Group has chosen not to restate comparatives in adopting IFRS 9, it has recognised an adjustment of EUR0.9 million to reduce non-current borrowings for the gain on 01 January 2018 with a corresponding impact on retained earnings. Any subsequent modification or extinguishment of financial liabilities will be recorded as a gain / loss in the Consolidated Income Statement.
(2) The adoption of IFRS 9 has fundamentally changed the Group's accounting for impairment losses for financial assets by replacing IAS 39's incurred loss approach with a forward-looking expected credit loss (ECL) approach. Under IFRS 9, credit losses are recognised earlier than they would be in IAS 39. IFRS 9 requires the Group to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through the profit and loss account.
Notes to the unaudited consolidated financial information
2. Significant accounting policies (continued)
ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. For trade and other receivables, the Group has applied the standard's simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group's historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
The Group considers a financial asset in default when contractual payment are 180 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. The adoption of the ECL requirements of IFRS 9 resulted in increases in impairment allowances for the Group's financial assets measured at amortised cost. The increase in allowance resulted in a EUR2.8 million impairment provision along with corresponding increase to deferred tax asset of EUR0.4m and a net adjustment to retained earnings of EUR2.4m at 01 January 2018.
IFRS 15 Revenue from Contracts with Customers
IFRS 15, Revenue from Contracts with Customers, replaces IAS 18, Revenue and IAS 11, Construction Contracts and related interpretations. IFRS 15 establishes a five-step model for reporting the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. IFRS 15 requires an entity to recognise revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to in exchange for transferring those goods or services to the customer. Revenue is recognised when an identified performance obligation has been met and the customer can direct the use of and obtain substantially all the remaining benefits from a good or service. The Group has adopted IFRS 15 from 01 January 2018, using the modified retrospective approach and has not restated comparatives for 2017.
The Group used the five-step model to develop an impact assessment framework to assess the impact of IFRS 15 on the Group's revenue transactions. The results of our IFRS 15 assessment indicated that the impact of applying IFRS 15 on our consolidated financial statements was not material for the Group and there was no adjustment to retained earnings on application of the new rules at 01 January 2018. The adoption of IFRS 15 has had no material impact on the principles applied by the Group for reporting the nature, amount and timing of revenue recognition. Contracts with customers can be readily identified throughout the Group and include a single performance obligation to sell fuel, food and shop products. Revenue is recognised when control of the goods are transferred to the customer, which for the Group is at a point in time when the Group sells a product to the customer.
Notes to the unaudited consolidated financial information
3. Segmental analysis
Applegreen plc is a forecourt retail business headquartered in Dublin, Ireland. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM has been identified as the Board of Executive Directors.
The board considers the business from both a geographic and product perspective. Geographically, management considers the performance in Ireland, the UK and the USA. From a product perspective, management separately considers retail activities in respect of the sale of fuel, food and other groceries within Ireland, the UK and in the USA.
The Group is organised into the following operating segments:
Retail Ireland - Involves the sale of fuel, food and store within the Republic of Ireland.
Retail UK - Involves the sale of fuel, food and store within the United Kingdom.
Retail USA - Involves the sale of fuel, food and store within the United States of America.
The CODM monitors Revenue and Gross Profit of segments separately in order to allocate resources between segments and to assess performance.
Information regarding the results of each reportable segment is included within this note. Segment performance measures are revenue and gross profit as included in the internal management reports that are reviewed by the executive directors. These measures are used to monitor performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. The CODM also reviews adjusted EBITDA on a consolidated basis. Assets and liabilities are reviewed by the CODM for the Group in its entirety and as such segment information is not provided for these items.
Analysis of Revenue and Gross Profit June 2018 IRL UK USA Total Revenue EUR000 EUR000 EUR000 EUR000 Fuel 301,506 314,844 65,712 682,062 Food 39,395 12,535 10,630 62,560 Store 65,419 29,483 15,408 110,310 -------- -------- ------- -------- 406,320 356,862 91,750 854,932 -------- -------- ------- -------- Gross Profit Fuel 19,682 13,035 6,013 38,730 Food 24,390 6,502 6,195 37,087 Store 19,255 9,073 5,038 33,366 -------- -------- ------- -------- 63,327 28,610 17,246 109,183 -------- -------- ------- --------
Notes to the unaudited consolidated financial information
3. Segmental analysis (continued)
Analysis of Revenue and Gross Profit June 2017 IRL UK USA Total Revenue EUR000 EUR000 EUR000 EUR000 Fuel 290,332 236,694 17,481 544,507 Food 35,951 9,658 39 45,648 -------- -------- ------- -------- Store 57,758 22,048 2,550 82,356 -------- -------- ------- -------- 384,041 268,400 20,070 672,511 -------- -------- ------- -------- Gross Profit Fuel 18,041 11,208 1,666 30,915 Food 22,325 4,830 18 27,173 -------- -------- ------- -------- Store 16,744 6,576 817 24,137 -------- -------- ------- -------- 57,110 22,614 2,501 82,225 -------- -------- ------- --------
At 01 January 2018, the Group updated its cost allocation model in relation to its distribution centre. Therefore, in order to show a true comparison, the 2017 figures have been reclassified in line with the updated methodology.
Reconciliation of profit before income tax to earnings before interest, tax, depreciation and amortisation (EBITDA), share based payments and other non-recurring charges (Adjusted EBITDA)
6 months 6 months to 30 June to 30 June Notes 2018 2017 EUR000 EUR000 Profit before income tax 9,130 8,913 Depreciation 5 8,287 6,096 Amortisation 5 429 160 Net finance cost 6 587 323 ------------ ------------ EBITDA 18,433 15,492 Share based payments 5 349 757 Non-recurring charges 5 571 398 Adjusted EBITDA 19,353 16,647 ------------ ------------
Notes to the unaudited consolidated financial information
4. Earnings per share
6 months 6 months to 30 June to 30 June Basic earnings per share 2018 2017 EUR000 EUR000 Profit from continuing operations attributable to the owners of the Company 7,745 7,569 Weighted average number of ordinary shares in issue for basic earnings per share 91,607 80,647 ------------ ------------ Earnings per share - Basic 8.45c 9.39c ------------ ------------
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.
6 months 6 months to 30 June to 30 June Diluted earnings per share 2018 2017 EUR000 EUR000 Profit from continuing operations attributable to the owners of the Company 7,745 7,569 Weighted average number of ordinary shares in issue 91,607 80,647 Adjusted for: Share options 1,273 3,328 ------------ ------------ Weighted average number of ordinary shares for diluted earnings per share 92,880 83,975 Earnings per share - Diluted 8.34c 9.01c ------------ ------------
5. Expenses
Profit before tax is stated after charging/(crediting):
6 months 6 months to 30 June to 30 June 2018 2017 EUR000 EUR000 Cost of inventory recognised as expense 731,053 577,907 Other external charges 14,696 12,379 Employee benefits 47,807 35,555 Operating lease payments 11,785 8,006 Amortisation of intangible assets 429 160 Depreciation of property, plant and equipment 8,287 6,096 Share based payment charge 349 757 Net foreign exchange loss/(gain) 8 (14) Loss on disposal of assets 8 255 Utilities 4,543 3,103 Rates 3,352 2,756 Non recurring charges (1) 571 398 Other operating charges 23,721 16,732 ------------ ------------ 846,609 664,090 ------------ ------------
Notes to the unaudited consolidated financial information
5. Expenses (continued)
Comparative figures for employee benefits have been reclassified to be consistent with the current period presentation.
(1) Non recurring charges relate to business combination acquisition costs on deals announced in 6 months to June 2018 and expected to close in the second half of the year and costs incurred in relation to the upgrade of our financial ERP system.
6. Finance costs and income
6 months 6 months to 30 June to 30 June 2018 2017 Finance costs EUR000 EUR000 Interest payable on amounts owed to credit institutions 881 762 Variance on translation of foreign borrowings * 12 (260) Lease finance charges and hire purchase interest 59 126 Borrowing costs capitalised (133) (121) 819 507 ------------ ------------ Finance income Interest income on loans to joint venture (232) (184) (232) (184) ------ ------ Net finance cost 587 323 ------ ------
* The variance on translation of foreign borrowings arises in respect of non-Euro denominated debt.
7. Taxation
6 months 6 months to 30 June to 30 June 2018 2017 Current tax EUR000 EUR000 Current tax expense 1,388 894 Total current tax 1,388 894 ------------ ------------ Deferred tax Origination and reversal of temporary differences (3) 450 Total deferred tax (3) 450 ------------ ------------ Total tax 1,385 1,344 ------------ ------------
Notes to the unaudited consolidated financial information
8. Intangible assets
Operating Assets under Goodwill Branding agreements Franchises Licences construction Total Cost EUR000 EUR000 EUR000 EUR000 EUR000 EUR000 EUR000 At 01 January 2018 3,691 429 597 5,521 1,607 5,414 17,259 Additions - - 142 115 257 3,930 4,444 Disposals - - - (5) - - (5) Translation adjustment 5 12 - 117 - - 134 --------- --------- ------------ ----------- --------- -------------- ------- At 30 June 2018 3,696 441 739 5,748 1,864 9,344 21,832 --------- --------- ------------ ----------- --------- -------------- ------- Amortisation At 01 January 2018 - 21 204 286 598 - 1,109 Disposals - - - (1) - - (1) Amortisation charge - 43 64 236 86 - 429 Translation adjustment - 2 - 10 - - 12 At 30 June 2018 - 66 268 531 684 - 1,549 --------- --------- ------------ ----------- --------- -------------- ------- Net book value --------- --------- ------------ ----------- --------- -------------- ------- 30 June 2018 3,696 375 471 5,217 1,180 9,344 20,283 --------- --------- ------------ ----------- --------- -------------- ------- 01 January 2018 3,691 408 393 5,235 1,009 5,414 16,150 --------- --------- ------------ ----------- --------- -------------- -------
Assets under construction as at 30 June 2018 relate to development costs incurred in the upgrade of the Group's financial ERP system.
Notes to the unaudited consolidated financial information
9. Property, plant and equipment
Fixtures, fittings Computer Land and Plant and and motor hardware Assets under Buildings equipment vehicles and software construction Total Cost EUR000 EUR000 EUR000 EUR000 EUR000 EUR000 At 01 January 2018 220,113 32,889 80,915 11,153 17,101 362,171 Additions 7,439 2,900 6,459 984 8,069 25,851 Disposals (119) (103) (402) (17) (4) (645) Reclassifications 1,413 88 99 26 (1,626) -
Translation adjustment 204 100 61 6 260 631 --------------- -------------- --------------- --------------- -------------- -------- At 30 June 2018 229,050 35,874 87,132 12,152 23,800 388,008 --------------- -------------- --------------- --------------- -------------- -------- Depreciation/impairment At 01 January 2018 34,319 3,585 20,142 4,551 - 62,597 Charge for the period 1,886 1,008 4,229 1,164 - 8,287 Disposals (2) (25) (27) (4) - (58) Translation adjustment 8 9 4 1 - 22 --------------- -------------- --------------- --------------- -------------- -------- At 30 June 2018 36,211 4,577 24,348 5,712 - 70,848 --------------- -------------- --------------- --------------- -------------- -------- Net book value --------------- -------------- --------------- --------------- -------------- -------- 30 June 2018 192,839 31,297 62,784 6,440 23,800 317,160 --------------- -------------- --------------- --------------- -------------- -------- 01 January 2018 185,794 29,304 60,773 6,602 17,101 299,574 --------------- -------------- --------------- --------------- -------------- --------
Assets under construction as at 30 June 2018 includes the following significant projects; eight service stations in the Republic of Ireland (EUR13.3m), six service stations in the US (EUR6.2m), one motorway service area in Northern Ireland (EUR0.7m) and three service stations in the UK (EUR0.2m). The remaining amounts relate to several other developments across all regions.
Notes to the unaudited consolidated financial information
10. Inventories
30 June 2018 31 Dec 2017 EUR000 EUR000 Raw materials and consumables 1,743 1,203 Finished goods 38,223 34,025 39,966 35,228 -------------- ------------
The cost of inventories recognised as an expense and included in 'cost of sales' amounted to EUR731m (June 2017: EUR578m).
11. Trade and other receivables
30 June 2018 31 Dec 2017 Current EUR000 EUR000 Trade receivables 16,255 9,485 Provision for impairment (899) (242) Deposits received from customers (50) (83) -------------- ------------ Net trade receivables 15,306 9,160 Accrued income 3,766 3,740 Prepayments 8,915 4,846 Other debtors 4,025 2,980 Withholding tax receivable 24 24 VAT receivable - 11 Amounts due from related companies 83 2,410 32,119 23,171 -------------- ------------ Non-current Other debtors 407 422 -------------- ------------ 407 422 -------------- ------------
Current trade and other receivables are non-interest bearing and are generally less than 30 day credit terms. Non-current debtors relate to loans advanced to our dealer network. The fair value of non-current trade and other receivables is equivalent to their carrying value. The fair value has been determined on the basis of discounted cash flows.
Following the adoption of IFRS 9 as of 01 January 2018, the Group recognised an additional expected credit loss of EUR2.8m. See note 2 for details.
Notes to the unaudited consolidated financial information
12. Cash and cash equivalents
Cash and cash equivalents included in the Unaudited Consolidated Statement of Financial Position and Unaudited Consolidated Statement of Cash Flows are analysed as follows:
30 June 2018 31 Dec 2017 EUR000 EUR000 Cash at bank 35,543 40,815 Cash in transit 19,069 16,667 Cash and cash equivalents (excluding bank overdrafts) 54,612 57,482 -------------- ------------
Cash and cash equivalents include the following for the purposes of the statement of cash flows:
30 June 2018 31 Dec 2017 30 June 2017 EUR000 EUR000 EUR000 Cash and cash equivalents 54,612 57,482 36,640 Bank overdrafts (note (3,599) - - 13) 51,013 57,482 36,640 ------------- ------------- -------------
13. Borrowings
30 June 2018 31 Dec 2017 Current EUR000 EUR000 Bank overdrafts 3,599 - Amounts owed to credit institutions 4,414 3,820 Finance leases 505 725 -------------- ------------ 8,518 4,545 -------------- ------------ Non-current Amounts owed to credit institutions 52,743 60,615 Finance leases 2,428 2,517 55,171 63,132 -------------- ------------ Total borrowings 63,689 67,677 -------------- ------------
Following the adoption of IFRS 9 as of 01 January 2018, the Group recognised a gain of EUR0.9m in opening reserves at that date arising from the refinancing of a borrowing performed during 2015. See note 2 for details.
Notes to the unaudited consolidated financial information
14. Trade and other payables
30 June 2018 31 Dec 2017 Current EUR000 EUR000 Trade payables and accruals 194,819 164,820 Other creditors 2,989 3,121 Deferred income 631 824 Value added tax payable 3,667 2,637 Other taxation and social security 2,537 3,140 Amounts due to related parties 512 359 205,155 174,901 -------------- ------------ Non-current Deferred income 5,347 5,534 -------------- ------------ 5,347 5,534 -------------- ------------
15. Share capital
Ordinary No. EUR Authorised Shares of EUR0.01 each At 31 December 2017 and 30 June 2018 1,000,000,000 10,000,000 Issued Shares of EUR0.01 each At 01 January 2018 91,558,158 915,581 Allotted 100,000 1,000 At 30 June 2018 91,658,158 916,581 -------------- -----------
100,000 share options with an exercise price of EUR1.67 were exercised during the period. Share premium of EUR166,000 was recorded on the issue of these shares.
Notes to the unaudited consolidated financial information
16. Post period end events
The Group announced on 02 August 2018, that it had entered into contracts which, upon completion, would result in it holding a 50.01% stake in Welcome Break. Welcome Break is a leading UK Motorway Service Area operator with a portfolio of 24 MSAs, two TRSAs and 29 hotels across 35 locations in the United Kingdom. This transaction is expected to complete in early Q4 2018.
In August 2018, the acquisition of seven sites in Columbia, South Carolina was completed which involved a leasehold arrangement with Getty Realty.
The Group has also agreed to lease a network of 43 petrol filling station sites located in Florida from Cross America Partners LP ("CAP"). These sites began trading in September 2018.
The Directors have proposed an interim dividend of 0.63 cent per ordinary share, EUR0.6m in total. This will be paid on 19 October 2018 to shareholders on the register on 28 September 2018.
Glossary of financial terms
The key non-IFRS financial terms used by the Group in this interim report are as follows:
Measure Description Constant currency Constant currency measures eliminate the effects of exchange rate fluctuations that occur when calculating financial performance numbers. EBITDA and EBITDA is defined as earnings before interest, adjusted tax, depreciation, amortisation and impairment EBITDA charges. Adjusted EBITDA refers to EBITDA adjusted for share based payments and non-recurring items. The adjusted EBITDA calculation can be found on page 15. Adjusted PBT Adjusted PBT is defined as profit before tax adjusted for share based payments and non-recurring items. Adjusted PBT is calculated as follows: 6 months 6 months to June 2018 to June 2017 EUR000 EUR000 Profit before tax 9,130 8,913 Share based payments 349 757 Non-recurring charges 571 398 -------------- -------------- Adjusted PBT 10,050 10,068 -------------- -------------- Adjusted EPS Adjusted EPS is defined as profit after tax adjusted for share based payments and non-recurring items divided by the weighted average number of ordinary shares in issues. Adjusted EPS is calculated as follows: 6 months 6 months to June 2018 to June 2017 EUR000 EUR000 Profit after tax 7,745 7,569 Share based payments 349 757 Non-recurring charges 571 398 -------------- -------------- Adjusted PBT 8,665 8,724 Number of shares (note 4) 91,607 80,647 -------------- -------------- Adjusted EPS 9.46c 10.82c -------------- -------------- Like for like Like for like statistics measure the performance of stores that were open at 01 January 2017 and excluding any stores that were closed or divested since that date. Net debt position Net debt position comprises current and non-current borrowings and cash and cash equivalents. ------------------- -------------------------------------------------------------------------------------------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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