20th Jul 2020 09:54
(Alliance News) - Applegreen PLC on Monday confirmed its trading was ahead of expectations in the second quarter, and it has stayed profitable.
The Irish filling station company said business has been pushed along by strong store sales in local service stations, good fuel margins and extensive cost saving measures.
As of June 30, consolidated net external debt was EUR550 million, compared to EUR525 million on December 31. The net debt position represented EUR660 million in debt, offset by EUR110 million cash.
Of the gross debt, EUR400 million is owed by Applegreen subsidiary Welcome Break, which still has liquidity and covenant headroom for the next 12 months, the company said. However, another extended UK national lockdown would likely result in a breach of Welcome Break's revised banking covenants, Applegreen warned.
The Dublin-based company bought a majority stake in motorway service station operator Welcome Break back in 2018.
"Having considered a number of factors including current trading performance, the outcomes of comprehensive forecasting, a range of possible future trading impacts, existing liquidity and amended covenant structures, the board is confident that the group is now well positioned with the recovery continuing in each of our markets," the company said.
Applegreen scheduled its annual general meeting for September 1.
Shares were down 1.0% at 331.50 pence each on Monday morning in London.
By Greg Roxburgh; [email protected]
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