Subway at Euro Garages forecourt

Non-fuel sales have driven growth at Euro Garages

Euro Garages has reported double-digit increases in full-year sales and profits, boosted by non-fuel sales.

The forecourt operator said profits rose 38% to £18m on sales up 40% to £439m in the year to 31 July.

Non-fuel sales during the year rose 36% to £73m. Euro Garages, which has franchise agreements with Spar, Starbucks, Subway and Greggs, said this included an 83% increase in fast food sales.

It also expanded its estate to 120 forecourts after snapping up 45 sites from Esso. It also rolled out 32 on-site Starbucks and 34 Subway outlets and expects to have 45 of each by the end of 2013.

Euro Garages added that it expects to create 600 new jobs over the next two years through a combination of new forecourts and developing its existing sites.

“The fuel market remains a tough place to be, but we continue to outperform the sector with our best-in-class retail offering on all our forecourts and exemplary customer service,” said Euro Garages CEO Zuber Issa.

“Looking ahead, we continue to set ambitious targets and seek new locations for Euro Garages sites. By the end of 2014 we aim to have a portfolio of more than 210 forecourt locations supported by an ambitious capital expenditure programme.”

Euro Garages MD Mohsin Issa added: “The business remains hugely cash generative and is supported by lenders with whom we have long-standing relationships, so we are maintaining our strategy of investing in new brand opportunities and developing our estate portfolio to offer the best forecourt retail experience in the UK.”