Applegreen trades ahead of COVID-19 projections in May and June, retailer reports

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Forecourt retailer Applegreen reports the business has continued to trade ahead of its COVID19 projections for both May and June. It said performance has been aided by strong store sales in the local petrol filling station sites, good fuel margins and extensive cost saving measures.

According to the retailer, traffic volumes have started to recover as authorities have accelerated the lifting of travel restrictions.

Applegreen said its focus at present is navigating the various challenges associated with COVID-19 and to ensure it is looking after its people whilst continuing to deliver an essential service. The ultimate course of the pandemic remains unclear at this stage, it added, but it is following the relevant guidance from the authorities and taking definitive steps to ensure the Group remains well positioned as market conditions recover.

Applegreen’s Welcome Break subsidiary is reported to have traded in line with the business’s COVID19 projections for both May and June and the business has now reopened a significant number of its food and beverage offers to meet demand as travel restrictions started to ease from early June. Traffic volumes on the UK motorway road network are continuing to recover and current traffic flows are now back to over 65% of 2019 volumes, Applegreen said.

“We welcome the UK government’s recent announcement which will see further substantial lifting of restrictions from 4 July 2020 which we expect to drive further traffic increases on the road network,” the retailer said.

Welcome Break has also successfully completed a process to access additional facilities, Applegreen announced. Applegreen said Welcome Break has repurposed £25m of a dedicated capital expenditure facility in its existing banking facilities into a revolving credit facility which is available to draw down for any purpose.