Shore Capital Stockbrokers, which tracks Applegreen stock, has said that the forecourt retailer is in line to deliver ‘very strong’ EPS growth in the coming years, ‘augmented by high returns across its various formats’.
Shore Capital was commenting following the publication of Applegreen’s H1 interim results yesterday (14 Sept), which indicated a 35% increase in gross profit (30% in constant currency) since H1 2014, and total group sales up 16.3% to €517.5 million.
The group’s Irish business was an example of ‘excellent growth in the core’, Shore Capital said, adding that in Ireland, ‘it continued to generate strong growth, with total sales ahead by c12% €295.2m including a non-fuel LFL sales contribution of 5%. Total gross profit increased by 25% to €40.8m, with non-fuel LFL gross profit growth of 7%.’
Shore Capital added that ‘with the resource from the IPO proceeds freeing the group from historic capital constraints, we would expect the pace of new site development and sites upgrades to steadily build.’
On its much-discussed US entry, Shore Capital said that its trial period in Long Island ‘remains, sensibly in our view, a slow burn’, with around 10 sites expected to be open by 2016.
Overall, Shore Capital added that Applegreen posted an ‘encouraging performance’ that ‘underpins its medium to long-term potential’.
© 2015 - Checkout Magazine by Stephen Wynne-Jones
