Forecourt investment driving growth at Euro Garages

• Fuel and retail sales +5% to £242.2m (2008: £231.5m) to 31 July across same portfolio of sites
• Profits (EBITDA) up 26% to £9.1m (2008: £7.2m) in same period
• Recent acquisitions will drive further sales and earnings growth in 2010/11
• Confirms new head office location in Blackburn with flagship forecourt for employee training and innovation

Euro Garages, the UK's fastest-growing forecourt operator, said its ongoing site redevelopment programme had delivered an uplift in sales in the year to 31 July.

In a full year trading update, the company said fuel and retail sales across the same portfolio of sites had increased 5% year-on-year, generating an extra £10m of revenue, thanks to a 'vastly improved forecourt experience across the majority of the estate'.

Euro Garages also announced the acquisition of a further three new sites, in addition to the 10 already acquired since January, which it said would provide further sales growth into 2010 and 2011 as each site went live.

It also said plans for the redevelopment of a motorway services area on the M61 in Chorley, Lancashire – which it acquired from First earlier this year – would be submitted within weeks.

Commenting on its profits (EBITDA) growth of 26% to £9.1m, the company said its improved convenience retail offering and increased buying power had enabled it to improve operating margins.

Recent acquisitions by the company include an 11-acre site in Ashby de la Zouche, a three-acre site in Uttoxeter and a three-acre site in Blackburn, together with a number of trading sites.

Euro Garages said the Blackburn site would be the location for its new head office building and a flagship forecourt, which would serve as a training academy for its 700 employees and an 'innovation centre' where it would trial new technologies and services.

Mohsin Issa, Director of Euro Garages, said: "We are successfully moving our model to one driven by the quality of the convenience retail offering and the overall customer experience across our sites.

"Investment in our people, in our existing estate and in new, premium locations – remain central to our ongoing growth strategy."

Euro Garages was founded by the Issa family in 2001 and is currently ranked as one of the UK's fastest growing privately-owned companies. It was recently listed in the Sunday Times Top Track of largest mid-market companies.

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