Euro Garages expects its annualised turnover to top £1bn following the deal to take over 48 Esso sites in the Midlands and East of England, which has now been completed.
In its most recently published results for the year to July 31, 2013, turnover was £439m, up 40% from the previous year’s £309m.
The company, which is ranked third in Forecourt Trader’s Top 50 Indies, revealed the surge in turnover as it announced a finance package with a club of five banks: Lloyds Bank, Handelsbanken, Barclays, Allied Irish Bank (AIB) and Pricoa Capital Group.
The finance is being used to acquire the Esso sites and to fund a £10m-a-year investment programme.
Mohsin Issa, Euro Garages managing director, said: “Extending our finance club and securing the new funding package is further endorsement of our business plan. We are continuing strategic site acquisitions that deliver new employment opportunities, especially for younger people, and bringing our customer offer to even more people. This additional finance enables us to invest to ensure customers at the Esso forecourts benefit from an improved retail experience and our delivery of best-in-class partner brands.”
Chief executive Zuber Issa added: “Last year’s integration of the Esso sites in the North of England and North Wales has been successful and all the forecourts have benefitted from much-needed capital investment and a new, fresher retail offer. We now look forward to doing the same with the Midlands and East of England forecourts. As ever, our focus is on surpassing customers’ expectations and developing long-term strategic relationships with our fuel suppliers.”
James Thornton, finance director, said: “Establishing the new funding club is a momentous step towards financing Euro Garages’ national expansion plans. Our business continues to attract significant interest to support our model and we are consistently exceeding stakeholder expectations by delivering effective financial results with strong top- and bottom-line growth.”
Following the transfer of the 48 sites, Euro Garages now employs more than 3,000 people across the UK. The company operates 180 forecourt stations across the UK, with 56 on-site Subway outlets, 51 Starbucks Drive-Thrus and 11 Greggs concessions. The company aims to have 100 of each outlet and create 1,750 new jobs by the end of 2015.
Euro Garages was founded in 2001 by brothers Mohsin and Zuber Issa with the acquisition of a single petrol filling station in Bury.