Aim newcomer Applegreen (APGN) is battling for the euros and pounds of the 'transumer' - a portmanteau of 'travelling consumer' that we suspect will not catch on. The forecourt retailer, which grew its number of sites from 152 at the end of December to 175 at the end of June, is focused on how much food it can get down the gullet of motorists across Ireland and the UK. More cash in the pocket of the average traveller, coupled with a growing list of food partners - now including pasty and sandwich purveyors Greggs (GRG) - lifted adjusted cash profits by 42 per cent to €10.7m (£7.9m) in the first half.
The numbers illustrate the strategy. In Ireland, revenue from food increased from €18.4m to €25.5m. Applegreen made a 58 per cent gross profit margin here, compared with a paltry 6 per cent on fuel. In the UK, where the fuel margin is even tighter, food revenue increased from €2.0m to €4.7m. It opened three service areas across the British Isles over the period - meaning a pit stop with food on a motorway or other major road - and a further two after the period-end. Meanwhile, its foray into the US market provided decent growth in fuel sales.
Analysts at Davy expect pre-tax profits of €18.3m for the full 2015 calendar year, giving adjusted EPS of 18.3¢, up from €14.9m and 20.6¢ in 2014.
| APPLEGREEN (APGN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 350p | MARKET VALUE: | £276m | |
| TOUCH: | 346-353p | 12-MONTH HIGH: | 362p | LOW: 277p |
| DIVIDEND YIELD: | na | PE RATIO: | 23 | |
| NET ASSET VALUE: | 110¢ | NET CASH: | €11.6m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 445 | 3.21 | 4.16 | nil |
| 2015 | 518 | 3.02 | 4.41 | nil |
| % change | +16 | -6 | +6 | - |
Ex-div: na Payment: na £1=€1.36 | ||||
