Forecourt retailer Euro Garages has predicted its grocery profits will overtake its fuel profits for the first time this year.

Without providing a specific breakdown of profits, Euro Garages finance director Martin Ashcroft said: "Growth in profitability in the petrol forecourt sector is driven by the convenience retail offering. We expect to generate more contribution from grocery than from fuel in our current year and are working to provide a full convenience offering."

The retailer was continuing to acquire and develop new sites, despite other operators being driven from the market, Ashcroft added. It has opened two new sites in the past six weeks and acquired a further five trading sites, a motorway services area and several plots of land with planning consent in 2009.

The company recorded a 24% hike in profits to £9.1m last year on sales up 5% to £242.2m.

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