Source - RNS
RNS Number : 0117J
Applegreen PLC
06 September 2016
 

 

Applegreen plc

Financial results for the six months ended 30 June, 2016

 

Dublin, London, 6 September 2016:  Applegreen plc ('Applegreen' or 'the Group'), a major petrol forecourt retailer in the Republic of Ireland with growing presence in the United Kingdom and United States, announces its half year results for the six months ended 30 June 2016.

 

Financial highlights:

·     20.4% increase in gross profit on H1 2015 (22.4% in constant currency)

·     Adjusted EBITDA increased by 15.0% from €11.3m in H1 2015 to €13.0m in H1 2016 (24.2% before FX gains and losses)

·     Like for like growth in gross profit at constant currency of 5.5% - mainly driven by 13.4% increase in like for like food sales at constant currency

·     Revenue up 7.4% to €556.0m

·     Net debt position at 30 June 2016 of €24.0m

 

Operational highlights:

·     Robust like for like growth in the Republic of Ireland in particular

·     Grew estate from 200 sites as at 31 December 2015 to 220 as at 30 June 2016

·     Strong pipeline of new sites particularly in UK

·     Lisburn MSA site awarded prestigious NACS Insight 2016 International Convenience Retailer of the Year Award

·     Opened 17 new food outlets including the launch of a new food offering - Freshii

·     Franchise agreement signed with 7-Eleven which can support our development in the US

 

Key figures:

 

30 June 2016

30 June 2015

Change

Gross profit

€68.5m

€56.9m

20.4%

Adjusted EBITDA1

€13.0m

€11.3m2

15.0%

Adjusted PBT1

€8.0m

€5.8m

37.9%

 

1 Adjusted for share based payments and non-recurring charges

2 In 2015 the H1 Adjusted EBITDA was reported as €10.7m as it was stated before FX gains and losses

 

Commenting on the results, Bob Etchingham, CEO said: "We are pleased to report another strong set of results reflecting our performance in the first half of 2016. Growth was particularly strong in the Republic of Ireland where our Service Areas and recent upgrades are well positioned to capture the demand from positive consumer sentiment. In the UK, a more competitive environment impacted growth in the early part of the year and while this abated, we also noted a more cautious consumer in advance of the Brexit vote."

 

"We continued to expand our business in the six months opening two new Service Area sites and adding three petrol filling stations in the Republic of Ireland. We also expanded our network of dealer sites by nine during the period. In the UK, our site numbers increased by seven comprising five petrol filling stations and two Service Areas including our award winning Motorway Service Area on the M1 South of Belfast.  We also launched our new Freshii food offer, offering an attractive healthy alternative, and increased the number of our food outlets by 17 across the estate."

 

"The decision by the UK public to exit the EU took place in late June so had no significant impact on the figures for the six months. Looking to the future, the lower Sterling:Euro exchange rate will obviously impact on our consolidated figures but otherwise it is too early to assess what impact the decision will have on our business."

 

"Trading since the end of June has been positive and has shown improvement particularly in the UK. Apart from the impact of the weaker Sterling on the translation of our earnings, we expect our full year performance to be in line with expectations."

 

About Applegreen

 

Established in 1992, Applegreen is a major petrol forecourt retailer in the Republic of Ireland with a significant and growing presence in the United Kingdom, and small presence in the US. The business employs c. 3,300 people, and operates 220 forecourt sites across the UK, Ireland and the US. 

 

Applegreen is the number one Motorway Service Area operator in the Republic of Ireland and holds a share of c.15% of the Irish motor fuel market. The Group operates a distinctive retail led business model focused on offering "low fuel prices always" to drive footfall to its sites and aims to provide a premium food and hot beverage offering in all its sites.

 

Applegreen has a number of strategic partnerships with international brands including Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix and Freshii.  The business also has its own food offer through the aCafe and Bakewell café brands. 

 

Applegreen's growth strategy is focused on acquiring and developing new sites in the markets in which it operates and on upgrading and rebranding existing sites.

 

Conference call details - analysts and institutional investors

 

Applegreen plc will host a conference call for analysts and institutional investors today, 6 September, 2016 at 08.30 GMT.  Presentation will be available on www.applegreenstores.com.  Dial in details are as follows:

 

Ireland Telephone Number:                       +353 (0)1 2465621           

UK Telephone Number:                               +44 (0)20 7026 5967

Passcode:                                                            2107888

 

For further enquiries, please contact:

 

Applegreen

Bob Etchingham, CEO / Paul Lynch CFO                                                 +353 (0) 1 512 4800

 

Drury Porter Novelli:

Paddy Hughes                                                                                                   +353 (0) 1 260 5000

 

Shore Capital

Stephane Auton                                                                                               +44 (0) 20 7408 4090

Patrick Castle

 

Goodbody

Siobhan Wall                                                                                                     +353 (0) 1 667 0420

 

 

 

Applegreen H1 2016 Performance Overview

 

The financial results for first half of 2016 show good growth over 2015. This was driven by strong like for like growth particularly in food and store, additional contribution from new sites across the Group's portfolio and continued investment and development of our food and store offerings. 

 

Our upgrade and rebranding activity, together with an improving economic backdrop, saw like for like food and store sales at constant currency grow by 6.0%, with related gross profit up by 6.7%.

 

Republic of Ireland

 

In the six months to 30 June 2016, revenue in the Republic of Ireland increased by 12.7% and gross profit increased by 20.3%. Like for like food and store sales and gross margin both increased by 8.5%. Fuel gross profit increased by 20.5% year on year including a like for like increase of 6.9%.

 

During the period, we expanded our Republic of Ireland estate with 12 new outlets.  Four new company owned sites were added, one Service Area and three petrol filling stations, while one site was divested. The new Service Area located in Trim, Co. Meath includes Subway and Bakewell food offerings. In addition our Birr petrol filling station was upgraded to a Service Area following a knock down and rebuild process. The three new petrol filling stations opened during the period are located in the east and south of the country further expanding our network.

 

The Group also added nine dealer sites during the period bringing our total portfolio of such sites to 42 by the end of June.  The dealer business is focused on providing fuel to independent operators.  In these sites the canopy and pumps on the forecourt are branded Applegreen while the non-fuel revenue remains under the control of the operator of the site.

 

During the period five sites were rebranded and upgraded incorporating at least one new food offer in all cases.

 

United Kingdom

 

Revenue has remained flat during H1 2016 compared to H1 2015 reflecting the impact of lower fuel prices and weaker Sterling while gross profit increased from €15.6m in H1 2015 to €18.4m in H1 2016. Like for like fuel gross profit fell by 1.1% reflecting an increased competitive environment in the early part of the year. Food sales and gross profit performed very well on a like for like constant currency basis reporting a 13.6% and 15.9% increase respectively reflecting our focus on this area and the impact of rebrands. Store sales declined 4.7% on a like for like basis (constant currency) compared to H1 2015 with a similar decline in related gross profit. This was in part a consequence of the more competitive fuel environment and also, we believe, a more cautious consumer in advance of the Brexit vote. We have noted an improvement in the UK performance in July and August.

 

There was a strong focus by the Group on expansion within the United Kingdom in H1 2016. Two new Service Areas were opened in Northern Ireland including our second Motorway Service Area in Northern Ireland. We were very pleased that this site, on the M1 South of Belfast, was awarded the prestigious NACS International Convenience Retailer of the Year Award. We also have a number of Service Areas that are in various stages of the planning process.  Five new petrol filling stations were opened in the UK with a further four existing stations being rebranded and expanded through the addition of new food offerings.

 

 

USA

During the period we added an additional site in Long Island and signed an agreement with Cross America Partners to take over nine sites in the Massachusetts area on a leasehold basis.  Four of these sites were taken over since 30 June. In addition, we signed an agreement with 7-Eleven to convert and operate our Hempstead, Long Island store as a 7-Eleven franchisee. We expect the conversion work to be complete during Q4 2016.

 

Costs

 

The rate of increase in selling and distribution costs was slightly ahead of the growth in number of sites, reflecting the increase in number of larger scale sites added.  Administrative expenses show an increase of €2.2m on the same period in 2015 (excluding the impact of the share based payment expense) of which €0.9m relates to the movement on FX gains and losses between the two periods. 

 

Outlook

 

Since 30 June we have continued to develop our estate.  In the UK, seven petrol filling stations have been added while in the Republic of Ireland a new Service Area was opened in Tullamore, Co. Offaly. We have a good pipeline of petrol filling stations in the Republic of Ireland for the remainder of 2016 and have added three new dealers since the period end. 

 

Trading in July and August was strong particularly in our Irish Service Areas and the UK sites also enjoyed a positive sales performance in the aftermath of the Brexit vote. The weaker Sterling:Euro exchange rate will have an impact on earnings but apart from that, we expect the financial performance for the full year to be in line with expectations.

 

 

 

Applegreen plc Unaudited Condensed

Consolidated Interim Financial Statements

For the six months ended 30 June 2016

 

CONTENTS

 

 

Page

Unaudited condensed consolidated income statement

 

7

Unaudited condensed consolidated statement of comprehensive income

 

8

Unaudited condensed consolidated statement of financial position

 

9

Unaudited condensed consolidated statement of changes in equity

 

10

Unaudited condensed consolidated statement of cash flows

 

11

Notes to the unaudited condensed consolidated financial statements

 

12-22

 

 

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT

PERIOD ENDED 30 JUNE 2016

 

 

Notes

June 2016

 

June 2015

 

 

€000

 

€000

Revenue

 

555,964

 

517,523

Cost of Sales

5

(487,505)

 

(460,653)

Gross Profit

 

68,459

 

56,870

 

 

 

 

 

Selling and distribution costs

5

(50,648)

 

(40,962)

Administrative expenses

5

(11,703)

 

(11,360)

Other income

 

511

 

388

Finance costs

6

729

 

(2,091)

Finance income

6

160

 

171

Profit before income tax

 

7,508

 

3,016

 

 

 

 

 

Income tax expense

7

(1,017)

 

(314)

Profit for the period

 

6,491

 

2,702

 

Earnings per share from continuing operations attributable to the owners of the parent company during the period

 

 

 

 

 

Earnings per share - Basic

4

8.12c

 

4.41c

Earnings per share - Diluted

4

7.78c

 

4.27c

 

 

 

 

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

PERIOD ENDED 30 JUNE 2016

 

 

June 2016

 

June 2015

 

€000

 

€000

Profit for the period

6,491

 

2,702

Other comprehensive expense

 

 

 

Items that may be reclassified to profit or loss

 

 

 

Currency translation differences on foreign operations

(3,032)

 

(99)

Other comprehensive expense for the period, net of tax

(3,032)

 

(99)

Total comprehensive income for the period

3,459

 

2,603

 

 

 

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

 

Assets

Notes

June 2016

 

Dec 2015

Non-current assets

 

€000

 

€000

Intangible assets

8

1,822

 

1,660

Property, plant and equipment

9

200,834

 

182,249

Investment in associates

 

-

 

-

Trade and other receivables

11

289

 

224

Deferred income tax asset

 

2,872

 

2,962

 

 

205,817

 

187,095

Current assets

 

 

 

 

Inventories

10

23,971

 

24,076

Trade and other receivables

11

21,480

 

15,270

Assets classified as held for sale

 

165

 

-

Current income tax receivables

 

85

 

180

Cash and cash equivalents

12

25,608

 

49,297

 

 

71,309

 

88,823

Total assets

 

277,126

 

275,918

 

 

 

 

 

Equity and liabilities

 

 

 

 

Equity attributable to owners of the parent

 

 

 

Issued share capital

16

802

 

796

Share premium

 

140,021

 

139,427

Capital contribution

 

512

 

512

Merger reserve

 

(65,537)

 

(65,537)

Currency translation reserve

 

(3,361)

 

(329)

Share based payment reserve

 

3,486

 

2,991

Retained earnings

 

26,920

 

20,429

Total equity

 

102,843

 

98,289

 

 

 

 

 

Non-current liabilities

 

 

 

 

Trade and other payables

14

5,444

 

5,624

Borrowings

13

44,535

 

47,766

Deferred income tax liabilities

 

4,718

 

4,692

 

 

54,697

 

58,082

Current liabilities

 

 

 

 

Trade and other payables

14

113,978

 

111,927

Borrowings

13

5,071

 

6,214

Current income tax liabilities

 

107

 

87

Provisions for other liabilities and charges

15

430

 

1,319

 

 

119,586

 

119,547

Total liabilities

 

174,283

 

177,629

 

 

 

 

 

Total equity and liabilities

 

277,126

 

275,918

           

 

UNAUDITED CONDENSED Consolidated statement of changes in equity

AS AT 30 JUNE 2016

 

 

Issued capital

Share premium

Capital contribution

Merger reserve

Foreign currency translation reserve

Share based payment reserve

Retained earnings

Total

 

€000

€000

€000

€000

€000

€000

€000

€000

At 01 January 2016

796

139,427

512

(65,537)

(329)

2,991

20,429

98,289

Profit for the period

-

-

-

-

-

-

6,491

6,491

Other comprehensive income

-

-

-

-

(3,032)

-

-

(3,032)

Share based payments

-

-

-

-

-

495

-

495

Issue of ordinary share capital (note 16)

6

594

-

-

-

-

-

600

At 30 June 2016

802

140,021

512

(65,537)

(3,361)

3,486

26,920

102,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 01 January 2015

600

67,574

-

(65,537)

(191)

332

14,877

17,655

Profit for the period

-

-

-

-

-

-

2,702

2,702

Other comprehensive income

-

-

-

-

(99)

-

-

(99)

Share based payments

-

-

-

-

-

2,163

-

2,163

Issue of ordinary share capital

189

66,315

-

-

-

-

-

66,504

Redemption of ordinary share capital

-

-

-

-

-

-

(1,874)

(1,874)

At 30 June 2015

789

133,889

-

(65,537)

(290)

2,495

15,705

87,051

 

 

 

UNAUDITED CONDENSED Consolidated statement of cash flows

PERIOD ENDED 30 JUNE 2016

 

 

Notes

June 2016

 

June 2015

Cash flows from operating activities

 

€000

 

€000

Profit before taxation

 

7,508

 

3,016

Adjustments for:

 

 

 

 

Depreciation and amortisation

5

5,687

 

3,625

Finance income

6

(160)

 

(171)

Finance costs

6

(729)

 

2,091

Share based payment expense

 

495

 

2,163

Net impairment of non current assets

 

146

 

-

Loss on the sale of property, plant and equipment

5

245

 

103

 

 

13,192

 

10,827

 

 

 

 

 

Increase in trade and other receivables

 

(6,312)

 

(2,049)

Increase in inventories

 

(780)

 

(1,284)

Increase in trade payables

 

11,695

 

17,186

(Decrease)/increase in provisions

 

(890)

 

574

Cash generated from operations

 

16,905

 

25,254

Income taxes paid

 

(662)

 

(1,367)

Net cash from operating activities

 

16,243

 

23,887

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(33,994)

 

(29,514)

Purchase of intangibles

 

(322)

 

(304)

Proceeds from sale of property, plant and equipment

 

281

 

-

Interest received

 

-

 

210

Net cash used in investing activities

 

(34,035)

 

(29,608)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from long-term borrowings

 

-

 

9,563

Proceeds from finance leases

 

-

 

414

Redemption of share capital

 

-

 

(1,874)

Proceeds from issue of ordinary share capital

 

600

 

69,281

Repayment of borrowings

 

(1,568)

 

-

Payment of finance lease liabilities

 

(603)

 

(915)

Interest paid

 

(965)

 

(1,603)

Net cash used in financing activities

 

(2,536)

 

74,866

 

 

 

 

 

Net increase in cash and cash equivalents

 

(20,328)

 

69,145

Cash and cash equivalents at beginning of period

 

47,245

 

12,266

Exchange gains

 

(2,249)

 

238

Cash and cash equivalents at end of period

12

24,668

 

81,649

              

 

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

1. General information and basis of preparation

Applegreen plc ('the Company') is a company incorporated in the Republic of Ireland. The unaudited condensed consolidated interim financial statements of the Company for the 6 months ended 30 June 2016 (the 'Interim Financial Statements') include the Company and its subsidiaries (together referred to as the 'Group'). The Interim Financial Statements were authorised for issue by the directors on 31 August 2016.

 

The Interim Financial Statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2015.

 

The Interim Financial Statements are presented in Euro (€) which is the Group's functional currency and all values are rounded to the nearest thousand (€000), except where otherwise stated.

 

The preparation of the Interim Financial Statements 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 these Interim Financial Statements, 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 2015 as set out on pages 59 to 67 in those financial statements. These financial statements are available on the Group's website; http://applegreenstores.com.

 

On 27 May 2015 Petrogas Global Limited converted to a public limited company and changed its name to Applegreen plc. On 19 June 2015, Applegreen plc successfully completed an initial public offering on the Alternative Investment Market (AIM) of the London Stock Exchange and the Enterprise Securities Market (ESM) of the Irish Stock Exchange.

 

The Interim Financial Statements do not constitute statutory financial statements. The statutory financial statements for the year ended 31 December 2015, 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.

 

2. Significant accounting policies

The accounting policies applied in these financial statements are consistent with those applied in the consolidated financial statements as at and for the year ended 31 December 2015, and are described in those financial statements on pages 59 to 66, except for the impact of the standard described below.

 

Following a review of the intercompany balances within the Group, a number of loans were identified as an extension of Applegreen plc's net investment in foreign operations. As there was and continues to be no intention for these loans to be repaid in the foreseeable future, these loans were considered quasi equity.

 

In accordance with IAS 21, foreign exchange gains and losses arising on the retranslation of 'quasi equity' loans are recorded in the Consolidated Statement of Comprehensive Income rather than the Consolidated Income Statement. This has increased the charge in the Consolidated Statement of Comprehensive Income by €2.7m for the period ended 30 June 2016.

 

Notes to the unaudited condensed consolidated interim financial statements

 

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 and the UK and fuel and other grocery 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 and store within the United States of America.

 

Food revenues are generally higher in the second half of the year due to the increased volumes on the motorways during the summer months. Generally this means that operating profits are higher in the second half of the year.

 

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

2016

IRL

UK

USA

Total

Revenue

€000

€000

€000

€000

Fuel

248,344

188,798

5,100

442,242

Food

31,745

8,302

-

40,047

Store

52,594

20,056

1,025

73,675

 

332,683

217,156

6,125

555,964

Gross Profit

 

 

 

 

Fuel

15,167

8,635

653

24,455

Food

17,977

3,989

-

21,966

Store

15,905

5,799

334

22,038

 

49,049

18,423

987

68,459

 

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

3. Segmental analysis (continued)

 

Analysis of Revenue and Gross Profit

2015

IRL

UK

USA

Total

Revenue

€000

€000

€000

€000

Fuel

224,619

195,069

3,816

423,504

Food

25,466

4,724

-

30,190

Store

45,122

18,188

519

63,829

 

295,207

217,981

4,335

517,523

Gross Profit

 

 

 

 

Fuel

12,583

8,174

342

21,099

Food

14,734

2,075

-

16,809

Store

13,468

5,326

168

18,962

 

40,785

15,575

510

56,870

 

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)

 

 

Notes

2016

 

2015

 

 

€000

 

€000

Profit before income tax

 

7,508

 

3,016

Depreciation

5

5,562

 

3,553

Amortisation

5

125

 

72

Impairment charge

5

146

 

-

Net finance cost

6

(889)

 

1,920

EBITDA

 

12,452

 

8,561

Share based payments

 

518

 

2,163

Non-recurring charges

5

-

 

580

Adjusted EBITDA

 

12,970

 

11,304

 

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

4. Earnings per share

 

Basic earnings per share

 

6 months to 30 June 2016

 

6 months to 30 June 2015

 

 

€000

 

€000

Profit from continuing operations attributable to the owners of the Company

 

6,491

 

2,702

Weighted average number of ordinary shares in issue for basic earnings per share

 

79,907

 

61,252

Earnings per share - Basic

 

8.12c

 

4.41c

 

 

 

 

 

 

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.

 

Diluted earnings per share

 

6 months to 30 June 2016

 

6 months to 30 June 2015

 

 

€000

 

€000

Profit from continuing operations attributable to the owners of the Company

 

6,491

 

2,702

Weighted average number of ordinary shares in issue

 

79,907

 

61,252

Adjusted for:

 

 

 

 

Share options

 

3,551

 

2,077

Weighted average number of ordinary shares for diluted earnings per share

 

83,458

 

63,329

Earnings per share - Diluted

 

7.78c

 

4.27c

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

5. Expenses

Profit before tax is stated after charging/(crediting):

 

 

6 months to 30 June 2016

 

6 months to 30 June 2015

 

€000

 

€000

Cost of inventory recognised as expense

477,698

 

454,451

Other external charges

9,807

 

6,202

Employee benefits

29,241

 

18,093

Operating lease payments

6,833

 

6,441

Amortisation of intangible assets

125

 

72

Depreciation of property, plant and equipment

5,562

 

3,553

Share based payment charge

495

 

2,163

Net foreign exchange loss/(gain)

310

 

(577)

Impairment charge

146

 

-

Loss on disposal of assets

245

 

103

Utilities

2,854

 

2,696

Rates

2,328

 

2,024

Non recurring charges *

-

 

580

Other operating charges

14,212

 

17,174

 

549,856

 

512,975

 

*Non-recurring charges incurred for the 6 months to 30 June 2015 comprise provision in respect of uncertain tax positions with Revenue authorities and one off payment made to directors of the Group for past service.

 

6. Finance costs/(income)

 

6 months to 30 June 2016

 

6 months to 30 June 2015

Finance costs

€000

 

€000

Bank loans and overdrafts

730

 

1,204

Variance on translation of foreign borrowings

(1,430)

 

1,007

Lease finance charges and hire purchase interest

113

 

153

Borrowing costs capitalised

(142)

 

(273)

Finance costs

(729)

 

2,091

 

Finance income

 

 

 

Interest income on loans to associate

(160)

 

(161)

Interest income on loans to directors

-

 

(10)

Finance income

(160)

 

(171)

Net finance (income)/cost

(889)

 

1,920

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

7. Taxation

 

6 months to 30 June 2016

 

6 months to 30 June 2015

Current tax

€000

 

€000

Current tax expense - Ireland

462

 

124

Current tax expense - Overseas

319

 

244

Adjustments in respect of previous periods

-

 

74

Total current tax

781

 

442

Deferred tax

 

 

 

Origination and reversal of temporary differences

236

 

(128)

Total deferred tax

236

 

(128)

Total tax

1,017

 

314

 

8. Intangible assets

 

 

 

Operating agreements

 

Franchises

 

Licences

 

Total

Cost

 

€000

 

€000

 

€000

 

€000

At 01 January 2016

 

235

 

755

 

1,344

 

2,334

Translation adjustment

 

-

 

(11)

 

(4)

 

(15)

Additions

 

166

 

55

 

87

 

308

Disposals

 

-

 

-

 

(9)

 

(9)

At 30 June 2016

 

401

 

799

 

1,418

 

2,618

 

 

 

 

 

 

 

 

 

Amortisation

 

 

 

 

 

 

 

 

At 01 January 2016

 

24

 

175

 

475

 

674

Translation adjustment

 

-

 

(1)

 

(1)

 

(2)

Disposals

 

-

 

-

 

(1)

 

(1)

Amortisation charge

 

32

 

24

 

69

 

125

At 30 June 2016

 

56

 

198

 

542

 

796

 

 

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

 

 

At 30 June 2016

 

345

 

601

 

876

 

1,822

At 01 January 2016

 

211

 

580

 

869

 

1,660

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

9. Property, plant and equipment

 

 

Land and buildings

Plant and equipment

Fixtures, fittings and motor vehicles

Computer hardware and software

Assets under construction

Total

Cost

€000

€000

€000

€000

€000

€000

At 01 January 2016

141,596

11,927

53,428

8,079

19,920

234,950

Translation adjustment

(5,020)

(326)

(1,970)

(208)

(798)

(8,322)

Additions

14,465

2,125

11,937

2,272

1,823

32,622

Reclassifications

9,108

124

573

15

(9,820)

-

Disposals

(1,064)

(75)

(527)

(72)

(338)

(2,076)

At 30 June 2016

159,085

13,775

63,441

10,086

10,787

257,174

 

 

 

 

 

 

 

Depreciation/Impairment

 

 

 

 

 

 

At 01 January 2016

31,788

1,912

16,161

2,840

-

52,701

Translation adjustment

(720)

(23)

(400)

(74)

-

(1,217)

Charge for the period

1,371

391

2,942

858

-

5,562

Disposals

(635)

(41)

(147)

(29)

-

(852)

Impairment charge

55

36

43

12

-

146

At 30 June 2016

31,859

2,275

18,599

3,607

-

56,340

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

At 30 June 2016

127,226

11,500

44,842

6,479

10,787

200,834

At 01 January 2016

109,808

10,015

37,267

5,239

19,920

182,249

 

Assets under construction as at 30 June 2016 includes the following significant projects; two service stations in the Republic of Ireland (€6.5m), two motorway services area in Northern Ireland (€2.6m), and one service station in the UK (€1m). The remaining amounts relate to several other developments in all three regions.

 

Notes to the unaudited condensed consolidated interim financial statements

 

10. Inventories

 

30 June

2016

 

31 December 2015

 

€000

 

€000

Raw materials and consumables

867

 

885

Finished goods

23,104

 

23,191

 

23,971

 

24,076

 

The cost of inventories recognised as an expense and included in 'cost of sales' amounted to €478m (June 2015: €454m).

 

11. Trade and other receivables

 

30 June

2016

 

31 December 2015

Current

€000

 

€000

Trade receivables

6,172

 

3,913

Provision for impairment

(305)

 

(221)

Deposits received from customers

(50)

 

(42)

Net trade receivables

5,817

 

3,650

Accrued income

1,556

 

1,697

Prepayments

7,533

 

3,687

Other debtors

4,618

 

3,998

Withholding tax receivable

24

 

325

VAT receivable

1,661

 

1,613

Amounts due from related companies (note 17)

271

 

300

 

21,480

 

15,270

 

Non-current

 

 

 

Other debtors

289

 

224

 

289

 

224

 

Current trade and other receivables are non-interest bearing and are generally on 30 day credit terms. Non-current debtors relates to loans advanced to our dealer network. The fair values 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.

 

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

12. Cash and cash equivalents

Cash and cash equivalents are included in the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows and, are analysed as follows:

 

30 June

2016

 

31 December 2015

 

€000

 

€000

Cash at bank

20,042

 

44,766

Cash in transit

5,566

 

4,531

Cash and cash equivalents (excluding bank overdrafts)

25,608

 

49,297

 

Cash and cash equivalents include the following for the purposes of the statement of cash flows:

 

 

30 June

2016

 

 

31 December 2015

 

30 June

2015

 

€000

 

€000

 

€000

Cash and cash equivalents

25,608

 

49,297

 

81,649

Bank overdrafts (note 13)

(940)

 

(2,052)

 

-

 

24,668

 

47,245

 

81,649

 

13. Borrowings

 

30 June

2016

 

31 December 2015

Current

€000

 

€000

Bank overdrafts

940

 

2,052

Bank loans

3,361

 

3,194

Finance leases

770

 

968

 

5,071

 

6,214

Non-current

 

 

 

Bank loans

41,845

 

44,903

Finance leases

2,690

 

2,863

 

44,535

 

47,766

Total borrowings

49,606

 

53,980

 

In March 2015, the Group entered into new banking arrangements with its senior lenders, Allied Irish Bank plc and Ulster Bank Ireland. These new agreements extend the maturity of the Group's debt and make additional facilities available to the Group.

 

 

Notes to the unaudited condensed consolidated interim financial statements

 

14. Trade and other payables

 

30 June

2016

 

31 December 2015

Current

€000

 

€000

Trade payables and accruals

107,407

 

107,054

Other creditors

2,135

 

2,504

Deferred income

146

 

281

Value added tax payable

1,772

 

278

Other taxation and social security

2,491

 

1,717

Amounts due to related parties

27

 

93

 

113,978

 

111,927

 

Non-current

 

 

 

Deferred income

5,444

 

5,624

 

5,444

 

5,624

 

Trade and other payables are non-interest bearing and are generally on 30 day credit terms. The fair values of current trade and other payables is equivalent to their carrying value.

 

15. Provisions

 

30 June

2016

 

31 December 2015

 

€000

 

€000

At 1 January

1,319

 

1,708

Used during the period

(740)

 

(1,538)

Additional provisions

-

 

1,149

Provisions released

(149)

 

-

At 31 December

430

 

1,319

 

Provisions comprise the Group's best estimate to settle management bonuses.

 

16. Share capital

 

Ordinary

 

No.

 

Authorised Shares of €0.01 each

 

 

 

At 31 December 2015 and 30 June 2016

100,000,000

 

1,000,000

 

 

 

 

Issued Shares of €0.01 each

 

 

 

At 01 January 2016

79,621,053

 

796,210

Allotted

600,000

 

6,000

At 30 June 2016

80,221,053

 

802,210

 

600,000 share options with an exercise price of €1.00 were exercised. Share premium of €594,000 was recorded on these shares.

 

Notes to the unaudited condensed consolidated interim financial statements

17. Related Party Transactions

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation.

 

There have been no related party transactions in the half year ended 30 June 2016 that materially affected the financial position or the performance of the Group during that period. There were no material changes in the nature of related party transactions described in the 31 December 2015 audited Financial Statements.

 

18. Comparative figures

Certain comparative figures have been restated where necessary to conform with current period presentation.

 

19. Post period end events

Since the year end, the Group has added a new service area and three new dealer sites in the Republic of Ireland, seven petrol filling stations in the UK and four in the USA. The Group will continue to pursue new developments to enhance shareholder value, through a combination of organic growth, acquisitions and development opportunities.

 

Glossary of Financial Terms

The key financial terms used by the Group in this interim report are as follows:

 

Measure

 

Description

Constant currency

 

Constant currency measures eliminates the effects of exchange rate fluctuations that occur when calculating financial performance numbers. 

 

EBITDA and adjusted EBITDA

 

EBITDA is defined as earnings before interest, tax, depreciation, amortisation and impairment charges.

 

Adjusted EBITDA refers to normalised trading EBITDA, being EBITDA adjusted for share based payments and non-recurring items.

 

The adjusted EBITDA calculation can be found on page 9 of unaudited condensed consolidated interim financial statements.

 

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 to 30 June 2016

 

6 months to 30 June 2015

 

 

 

 

Profit before tax

7,508

 

3,016

Share based payments

518

 

2,163

Non-recurring charges

-

 

580

Adjusted PBT

8,026

 

5,759

 

Like for like

 

Like for like statistics measures the performance of stores that were open at 1 January 2015 and excluding any stores that were closed or divested since that date.

 

Net debt position

 

Net debt comprises current and non-current borrowings and cash and cash equivalents.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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