Davy Stockbrokers has given a thumbs up to forecourt retailer Applegreen's forward strategy, saying its 'retail-led business model, focused on driving footfall into its sites, is working'.
Davy analyst Robert Stokes made the comments following positive results from the forecourt retailer, with gross profit of €125.9 million, well ahead of Davy's forecast of €112.8 million.
'Food and store sales were responsible for almost 65% of this growth, as food margins expanded across the group, and by over 900bps in the UK to 46.1%,' Stokes added.
Fuel now accounts for less than 40% of gross profit, Davy noted, down from close to 70% in 2012.
Goodbody Stockbrokers' Patrick Higgins described the retailer's performance as 'strong', adding that its 'results and the positive start to 2016 reaffirms our positive stance on Applegreen'.
Shore Capital Stockbrokers, which also follows Applegreen, described the group's FY2015 results as 'outstanding' and 'more than delivering on expectations'.
"We believe Applegreen has more than delivered on the strategy and expectations set out at its June IPO," said Shore Capital analyst Darren Shirley.
"Looking into FY2016, we expect capital investment to step-up to €65m, though after its c€66m (net) fund raise, management has the resource to fund its short-medium growth ambitions."
© 2016 - Checkout Magazine by Stephen Wynne-Jones