Preliminary Statement of Results for the year ended 31 December 2016 Dublin, London, 14 March 2017: Applegreen plc ( Applegreen or the Group ), a major petrol forecourt retailer in the Republic of Ireland with growing operations in the United Kingdom and the United States, announces its preliminary results for the year ended 31 December 2016. Financial highlights: 16% increase in gross profit on FY 2016 (20% in constant currency) Adjusted EBITDA increased by 11% from 28.9m in FY 2015 to 32.0m in FY 2016 (14% on a constant currency basis) Like for like growth in non-fuel gross profit (food and store) at constant currency of 9% Revenue up 9% to 1,178m Net debt position at 31 December 2016 of 19.4m Maiden final dividend proposed of 1.25 cent per share Operational highlights: Grew estate to 243 sites as at 31 December 2016 (2015: 200) Continued investment in the development of the network with capex for the year of 60.3m Opened 32 new food outlets including the launch of a new food offering Freshii Site expansion with Cross America and 7-Eleven franchise underpinning USA development Continued like for like growth in food across the estate Strong consumer sentiment in Ireland while UK volumes positive in H2 Announced the proposed acquisition of 50% of the Joint Fuels Terminal in Dublin port Key figures: 31 Dec 2016 31 Dec 2015 Change Gross profit 145.8m 125.9m 15.8% Adjusted EBITDA 1 32.0m 28.9m 10.7% Adjusted PBT 1 21.0m 17.7m 18.6% Commenting on the results, Bob Etchingham, CEO said: We are pleased to report another strong set of results for the business. Our food and store sales were particularly strong in the Republic of Ireland during the year while the UK had a good performance in the second six months. Fuel margin was impacted by the rising oil price and in Ireland by the rising proportion of fuel card of the total fuel volume. The UK s decision to exit the EU has resulted in a weaker sterling which has impacted on the consolidated euro results for the company. To date this decision has had no further impact on the business. The business maintained its rate of expansion during 2016 growing the network by 28 company owned sites and 15 dealer sites. Apart from dealer sites, the main area of network expansion has been the UK with fifteen additional sites including two service areas, one Motorway Service Area ( MSA ) and one Trunk Road Service Area ( TRSA ). In addition, two Petrol Filling Stations ( PFSs ) were upgraded to TRSAs. In Ireland, eight sites were added comprising three TRSAs and five PFSs while one PFS was disposed of and one PFS was upgraded to a TRSA. In the USA, an additional site was added in 1 Adjusted for share based payments and non-recurring charges. Refer to glossary of terms for further information. 1
Long Island while five sites were taken over in New England as part of a nine site deal with CrossAmerica Partners. We also added Freshii and, in the USA, 7-Eleven as franchise partners during the year further enhancing our retail and food to go offer. We are delighted that the quality of our sites has received strong industry recognition during the year earning several awards including the prestigious NACS Insight 2016 International Convenience Retailer of the Year Award for our Lisburn site on the M1 south of Belfast. We are pleased to announce the introduction of a maiden dividend of 1.25c per share subject to approval at our AGM. We committed to a prudent dividend policy at the time of our IPO and our financial performance since then warrants this move to deliver further shareholder value. We continue to see opportunities for growth across our markets and have added 12 sites since the start of the year. Our core Irish market is delivering good growth in non-fuel sales in particular while fuel margin experience has been in line with 2016. The UK has also begun the year positively and whilst mindful of the uncertainties created by the Brexit process we expect to continue to grow our operations during the year. About Applegreen Established in 1992, Applegreen is a major petrol forecourt retailer in the Republic of Ireland with a significant and growing presence in the United Kingdom, and an evolving presence in the USA. As at 31 December 2016, the business employed c. 3,400 people, and operated 243 forecourt sites across the UK, Ireland and the USA. Applegreen is the number one Motorway Service Area operator in the Republic of Ireland while occupying a leading position in the Irish petrol forecourt sector. The Group offers a distinctive convenience retail offering in the forecourt space with three key elements: A low fuel prices, always price promise to drive footfall to the stores A Better Value Always tailored retail offer, and A strong food and beverage focus aiming to offer premium products and service to the customer. Applegreen has a number of strategic partnerships with international brands including Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii and 7-Eleven. The business also has its own food offer through the acafé and Bakewell café brands. Applegreen s growth strategy is focused on acquiring and developing new sites in the markets in which it operates and on upgrading and rebranding existing sites. 1
Conference call details analysts and institutional investors Applegreen plc will host a conference call for analysts and institutional investors today, 14 March, 2017 at 08.30 GMT. Presentation will be available on www.applegreenstores.com. Dial in details are as follows: Ireland Telephone Number: +353 (0)1 2465621 UK Telephone Number: + 44 (0)330 336 9411 Passcode: 9487979 For further enquiries, please contact: Applegreen Bob Etchingham, CEO / Paul Lynch CFO +353 (0) 1 512 4800 Drury Porter Novelli: Paddy Hughes +353 (0) 1 260 5000 Shore Capital Stephane Auton +44 (0) 20 7408 4090 Patrick Castle Goodbody Joe Gill +353 (0) 1 667 0420 Siobhan Wall 2
Applegreen FY 2016 Performance Overview and Outlook 2016 was another successful year of growth for the Group driven by strong like for like growth in food and store and additional contribution from new sites across the Group s portfolio. Our upgrade and rebranding activity, together with an improving economic backdrop, saw like for like food and store sales grow by 7.1% on a constant currency basis, with related gross profit up by 8.9%. The increasing proportion of fuel cards of total fuel volume together with increasing oil prices throughout the period had a negative impact on fuel margin in Ireland although the fuel card volume would have been positive for the strong non-fuel sales. During the period we expanded our portfolio with 43 new sites, including 22 in the ROI, 15 in the UK and six in the USA. 28 of these were company owned sites, including five Service Areas and 23 petrol filling stations and 15 were dealer sites. The dealer business provides fuel to independent operators. The canopy and pumps on these dealer locations are branded Applegreen while the non-fuel revenue remains under the control of the operator of the site. We continued our rebranding and upgrade programme with 19 sites completed in 2016, adding one or more new food outlets at each site. We also expanded our range of food outlets by 32 introducing a new food offer Freshii as well as launching the 7-Eleven franchise in the USA. This added to our existing portfolio of own brands and international brands including Subway, Costa Coffee, Burger King, Lavazza, Chopstix and Greggs. Republic of Ireland In the twelve months to 31 December 2016, revenue in the Republic of Ireland increased by 11.4% and gross profit increased by 15.0%. Like for like food and store sales increased year on year by 9.3% and related gross profit grew by 10.2%. Total fuel gross profit increased by 8.0% compared to 2015 but on a like for like basis declined by 4.8%. This reflected the impact of the rising oil price throughout the year as well as the growth of fuel card volume, which has a lower margin than retail fuel. The rise in fuel card volume did help drive the strong non-fuel performance. During the year, we expanded our Republic of Ireland estate by 22 including 15 dealer sites. We opened four new TRSAs including the upgrade of an existing PFS in Birr, Co. Offaly. The other TRSAs were in Meath, Louth and Tullamore, Co. Offaly. We added 5 petrol filling stations, two in Dublin with the remainder in the southern half of the country. The addition of 15 new dealer sites during the period brings our total dealer portfolio to 48 by the end of the year. The dealer business now accounts for 16% of the total ROI fuel volumes. During the year, 11 sites were rebranded and upgraded incorporating at least one new food offer in all cases. 70% of the ROI Company owned estate is now branded Applegreen. Our fuel card volumes more than doubled and now account for 7% of ROI fuel volumes. At the beginning of 2017, we entered into a conditional agreement to acquire a 50% share in the Joint Fuels Terminal in Dublin port from the Topaz Energy Group for a consideration of 15.7m. The acquisition is subject to the satisfaction of a number of conditions including the approval of the Competition and Consumer Protection Commission and is expected to complete in Q2 2017. This 3
transaction should enhance the competitiveness of our supply and provide further scope for the development of our Irish fuel business. United Kingdom Revenue increased by 17.1% and gross profit by 28.8% on a constant currency basis largely due to the continued expansion of the UK estate. Combined food and store sales and gross profit rose year on year on a constant currency basis by 32.9% and 42.1% respectively. On a like for like constant currency basis non-fuel sales were flat while related gross profit grew by 3.9% reflecting strong growth in food and better margins in store. Like for like (constant currency) fuel gross profit for the year was down 0.6% (-1.1% in H1) reflecting an improving competitive environment in the second half of the year. There was a strong focus by the Group on expansion within the United Kingdom in 2016 with a total capex spend of 26.0m. Four new Service Area sites were opened in the UK including a new MSA heading south of Belfast, a new TRSA in Ballymena Northern Ireland and the conversion of two of our existing PFSs to TRSAs. We were very pleased that our Lisburn forecourt, on the M1 South of Belfast, was awarded the prestigious NACS Insight 2016 International Convenience Retailer of the Year Award. We are building a good pipeline of TRSAs and MSAs in the UK, which are at various stages of planning. We have also developed our relationship with Costa Coffee in the UK and opened our first Costa Coffee café as part of a site upgrade to TRSA in December 2016. The second such café opened in February 2017. 13 new PFSs were opened in the UK with a further seven existing stations being rebranded and expanded through the addition of new food offerings. 35% of our UK estate is now branded Applegreen. USA During the year the Group added 1 new forecourt in Long Island. We also signed an agreement with CrossAmerica Partners to lease nine sites in the New England area. Five of these sites were taken over in 2016. This now brings the total number of trading forecourts in the USA to 11. In addition, we signed a franchise agreement with 7-Eleven. Our store in Hempstead, Long Island has been redeveloped in 2016 and is now trading as 7-Eleven. We have confidence that the USA market represents a viable region for further development noting an ample supply of expansion opportunities and an under developed retail model in some regions. We are continuing to invest in the USA with a capex spend of 1.0m in 2016 and are strengthening the organisational structure in the USA to ensure ongoing support for further growth and expansion. Costs Selling and distribution expenses rose by 20.8% year on year. This is broadly in line with the 43 site additions in the year which resulted in a 21.5% increase in total site numbers. Administrative expenses, excluding share based payment expense, non-recurring costs and depreciation, grew by 4
8.7% reflecting an increase in development spend and increased resource in the UK market in particular. Dividend The Board has proposed a maiden final dividend, subject to approval at the Company's AGM, of 1.25 cent per share ( 1.0m) which will be paid on 29 June 2017 to shareholders on the register on 9 June 2017. Outlook We continue to develop our network in 2017 adding 12 sites in the year to date. In the Republic of Ireland we have opened a new service area in Waterford and added a petrol filling station in Dublin. In the UK we have opened a new MSA in Lisburn heading north to Belfast and have also added three petrol filling stations as well as converting another of our petrol filling stations to a TRSA. In the US we acquired two further sites as well as adding four new dealer sites. We have a strong pipeline of further developments of both Service Area sites and petrol filling stations across our markets. We are confident of making further progress during 2017. Our core Irish market is delivering good growth in non-fuel sales in particular while fuel margin experience has been in line with 2016. The UK has also begun the year positively and while aware of the uncertainties created by the Brexit process we expect to continue to experience growth across our operations during the year. 5
UNAUDITED CONSOLIDATED INCOME STATEMENT YEAR ENDED 31 DECEMBER 2016 Notes 000 000 Revenue 1,177,642 1,081,494 Cost of sales 5 (1,031,865) (955,595) Gross Profit 145,777 125,899 Selling and distribution costs 5 (103,947) (86,067) Administrative expenses 5 (24,004) (24,321) Other income 1,166 953 Finance costs 6 197 (2,877) Finance income 6 325 334 Profit before income tax 19,514 13,921 Income tax expense 7 (2,280) (1,917) Profit for the financial year 17,234 12,004 Earnings per share from continuing operations attributable to the owners of the parent company during the year Earnings per share Basic 4 21.52c 17.07c Earnings per share Diluted 4 20.63c 16.29c 6
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31 DECEMBER 2016 000 000 Profit for the financial year 17,234 12,004 Other comprehensive expense Items that may be reclassified to profit or loss Currency translation differences on foreign operations (3,720) (138) Other comprehensive expense for the year, net of tax (3,720) (138) Total comprehensive income for the year 13,514 11,866 7
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016 Assets Notes Non-current assets 000 000 Intangible assets 8 2,757 1,660 Property, plant and equipment 9 219,226 182,249 Investment in associates - - Trade and other receivables 11 373 224 Deferred income tax asset 4,103 2,962 226,459 187,095 Current assets Inventories 10 30,273 24,076 Trade and other receivables 11 19,726 15,270 Assets classified as held for sale 165 - Current income tax receivables 80 180 Cash and cash equivalents 12 29,374 49,297 79,618 88,823 Total assets 306,077 275,918 Equity and Liabilities Equity attributable to owners of the parent Issued share capital 15 805 796 Share premium 140,268 139,427 Capital contribution 512 512 Merger reserve (65,537) (65,537) Currency translation reserve (4,049) (329) Share based payment reserve 5,349 2,991 Retained earnings 37,663 20,429 Total equity 115,011 98,289 Non-current liabilities Trade and other payables 14 5,704 5,624 Borrowings 13 42,950 47,766 Deferred income tax liabilities 5,123 4,692 53,777 58,082 Current liabilities Trade and other payables 14 130,948 113,246 Borrowings 13 5,849 6,214 Current income tax liabilities 492 87 137,289 119,547 Total liabilities 191,066 177,629 Total equity and liabilities 306,077 275,918 8
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 31 DECEMBER 2016 Issued capital Share premium Capital Contribution Merger reserve Foreign currency translation reserve Share based payment reserve Retained earnings Total 000 000 000 000 000 000 000 000 At 01 January 2015 600 67,574 - (65,537) (191) 332 14,877 17,655 Profit for the year - - - - - - 12,004 12,004 Other comprehensive income - - - - (138) - - (138) Share based payments - - - - - 2,659-2,659 Issue of ordinary share capital 196 71,853 - - - - (4,578) 67,471 Redemption of ordinary share capital - - - - - - (1,874) (1,874) Capital Contribution - - 512 - - - - 512 At 01 January 2016 796 139,427 512 (65,537) (329) 2,991 20,429 98,289 Profit for the year - - - - - - 17,234 17,234 Other comprehensive income - - - - (3,720) - - (3,720) Share based payments - - - - - 2,358-2,358 Issue of ordinary share capital (note 15) 9 841 - - - - - 850 At 31 December 2016 805 140,268 512 (65,537) (4,049) 5,349 37,663 115,011 9
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2016 Notes Cash flows from operating activities 000 000 Profit before income tax 19,514 13,921 Adjustments for: Depreciation and amortisation 5 11,162 8,663 Finance income 6 (325) (334) Finance costs 6 (197) 2,877 Net impairment of non current assets 5 368 (15) Share based payment expense 5 1,441 2,667 Loss on the sale of property, plant and equipment 5 327 509 32,290 28,288 Increase in trade and other receivables (4,734) (4,642) Increase in inventories (7,386) (4,526) Increase in trade payables 28,923 17,672 Cash generated from operations 49,093 36,792 Income taxes paid (1,404) (2,941) Net cash from operating activities 47,689 33,851 Cash flows from investing activities Purchase of property, plant and equipment (60,763) (53,950) Purchase of intangibles (1,371) (867) Proceeds from sale of property, plant and equipment 423 48 Interest received 190 200 Net cash used in investing activities (61,521) (54,569) Cash flows from financing activities Proceeds from long-term borrowings - 9,563 Redemption of share capital - (1,874) Proceeds from issue of ordinary share capital 850 67,471 Contributions from shareholders - 512 Repayment of borrowings (3,305) (16,600) Payment of finance lease liabilities (1,028) (1,298) Interest paid (1,907) (2,347) Net cash used in financing activities (5,390) 55,427 Net (decrease)/increase in cash and cash equivalents (19,222) 34,709 Cash and cash equivalents at beginning of year 47,245 12,266 Exchange gains (284) 270 Cash and cash equivalents at end of year 12 27,739 47,245 10
Notes to the unaudited consolidated financial information 1. General information and basis of preparation Applegreen plc ( the Company ) is a company incorporated in the Republic of Ireland. The Unaudited Consolidated Financial Information of the Company for the year ended 31 December 2016 (the Financial Information ) include the Company and its subsidiaries (together referred to as the Group ). The company is incorporated and tax resident in Ireland. The address of its registered office is Block 17, Joyce Way, Parkwest, Dublin 12. The Consolidated Financial Statements of the Group are prepared in accordance with Irish law and International Financial Reporting Standards ( IFRS ) and their interpretations issued by the International Accounting Standards Board ( IASB ) and adopted by the European Union ( EU ). The financial information in this report has been prepared in accordance with the Group s accounting policies. Full details of the accounting policies adopted by the Group are contained in the Consolidated Financial Statements included in the Group s annual report for the year ended 31 December 2015 which is available on the Group s website; http://applegreenstores.com. The accounting policies and methods of computation and presentation adopted in the preparation of the Financial Information are consistent with those described and applied in the annual report for the year ended 31 December 2015 except as explained in Note 2 below. There are no new IFRSs or interpretations effective from 01 January 2016 which have had a material effect on the financial information included in this report. The financial information presented in this report does not represent full statutory accounts. The preliminary release was approved by the Board of Directors. The annual report and accounts will be approved by the Board of Directors and reported on by the auditors in due course. Accordingly, the financial information is unaudited. Full statutory accounts for the year ended 31 December 2015 have been filed with the Irish Registrar of Companies. The audit report on those statutory accounts was unqualified. The Financial Information is presented in Euro, rounded to the nearest thousand, which is the functional currency of the parent company and also the presentation currency of the Group. The preparation of the Financial Information requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results could differ materially from these estimates. In preparing the Financial Information, the critical judgements made by management in applying the Group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2015 as set out on pages 59 to 67 in those financial statements. 11
Notes to the unaudited consolidated financial information 2. Significant accounting policies The accounting policies applied in the Financial Information are consistent with those applied in the consolidated financial statements as at and for the year ended 31 December 2015, and are described in those financial statements on pages 59 to 66, except for the impact of the standard described below. Following a review of the intercompany balances within the Group, a number of loans were identified as an extension of Applegreen plc s net investment in foreign operations. As there was and continues to be no intention for these loans to be repaid in the foreseeable future, these loans were considered quasi equity. In accordance with IAS 21, foreign exchange gains and losses arising on the retranslation of quasi equity loans are recorded in the Consolidated Statement of Comprehensive Income rather than the Consolidated Income Statement. This has increased the charge in the Consolidated Statement of Comprehensive Income by 3.2m for the year ended 31 December 2016. 3. Segmental analysis Applegreen plc is a forecourt retail business headquartered in Dublin, Ireland. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM has been identified as the Board of Executive Directors. The board considers the business from both a geographic and product perspective. Geographically, management considers the performance in Ireland, the UK and the USA. From a product perspective, management separately considers retail activities in respect of the sale of fuel, food and other groceries within Ireland and the UK and fuel and other grocery in the USA. The Group is organised into the following operating segments: Retail Ireland - Involves the sale of fuel, food and store within the Republic of Ireland. Retail UK - Involves the sale of fuel, food and store within the United Kingdom. Retail USA - Involves the sale of fuel and store within the United States of America. The CODM monitors Revenue and Gross Profit of segments separately in order to allocate resources between segments and to assess performance. Information regarding the results of each reportable segment is included within this note. Segment performance measures are revenue and gross profit as included in the internal management reports that are reviewed by the executive directors. These measures are used to monitor performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. The CODM also reviews adjusted EBITDA on a consolidated basis. Assets and liabilities are reviewed by the CODM for the Group in its entirety and as such segment information is not provided for these items. 12
Notes to the unaudited consolidated financial information 3. Segmental analysis (continued) Analysis of Revenue and Gross Profit 2016 IRL UK USA Total Revenue 000 000 000 000 Fuel 515,762 405,517 16,240 937,519 Food 68,019 17,223 4 85,246 Store 109,652 42,332 2,893 154,877 693,433 465,072 19,137 1,177,642 Gross Profit Fuel 32,405 18,699 1,892 52,996 Food 39,444 8,640-48,084 Store 31,525 12,208 964 44,697 103,374 39,547 2,856 145,777 Analysis of Revenue and Gross Profit 2015 IRL UK USA Total Revenue 000 000 000 000 Fuel 472,345 397,874 9,081 879,300 Food 55,835 11,661-67,496 Store 94,332 38,946 1,420 134,698 622,512 448,481 10,501 1,081,494 Gross Profit Fuel 29,994 18,094 947 49,035 Food 32,484 5,380-37,864 Store 27,387 11,186 427 39,000 89,865 34,660 1,374 125,899 Reconciliation of profit before income tax to earnings before interest, tax, depreciation and amortisation (EBITDA), share based payments and other non-recurring charges (Adjusted EBITDA) Notes 000 000 Profit before income tax 19,514 13,921 Depreciation 5 10,890 8,484 Amortisation 5 272 179 Net impairment charge 5 368 (15) Net finance cost 6 (522) 2,543 EBITDA 30,522 25,112 Share based payments 5 1,441 2,667 Non-recurring charges 5-1,118 Adjusted EBITDA 31,963 28,897 13
Notes to the unaudited consolidated financial information 4. Earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year. Basic earnings per share Profit from continuing operations attributable to the owners of the Company ( 000) 17,234 12,004 Weighted average number of ordinary shares in issue for basic earnings per share ( 000) 80,077 70,339 Earnings per share Basic (cent) 21.52 17.07 Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares which comprise share options issued under the share incentive plan. Diluted earnings per share Profit from continuing operations attributable to the owners of the Company ( 000) 17,234 12,004 Weighted average number of ordinary shares in issue for basic earnings per share ( 000) 80,077 70,339 Adjusted for: Share options ( 000) 3,471 3,339 Weighted average number of ordinary shares for diluted earnings per share ( 000) 83,548 73,678 Earnings per share Diluted (cent) 20.63 16.29 14
Notes to the unaudited consolidated financial information 5. Expenses Profit before tax is stated after charging/(crediting): 000 000 Cost of inventory recognised as expense 1,011,203 941,089 Other external charges 20,662 14,506 Employee benefits 63,994 38,829 Licensee payroll costs (1) - 12,394 Share based payment charge (2) 1,441 2,667 Operating leases 13,912 12,568 Amortisation of intangible assets 272 179 Depreciation of property, plant and equipment 10,890 8,484 Net foreign exchange loss 381 146 Impairment charge 1,510 654 Impairment reversal (1,142) (669) Loss on disposal of assets 327 509 Utilities 5,560 5,247 Rates 4,818 4,309 Non recurring charges (3) - 1,118 Other operating charges 25,988 23,953 1,159,816 1,065,983 (1) From 01 January 2016, licensee staff have become employees of the Group. As a result their payroll costs have included in employee benefits above. (2) Included in the charge of 1.4m for share based payments is a charge of 0.5m in respect of share options granted during the year under a new share option scheme. (3) Non-recurring charges for the year ended 31 December 2015 comprise provision in respect of uncertain payroll tax positions with Revenue authorities and a one off payment made by the Group s principal shareholders to employees subsequent to the Group s IPO. 6. Finance costs and income Finance costs 000 000 Bank loans and overdrafts 1,485 2,266 Variance on translation of foreign borrowings * (1,724) 585 Lease finance charges and hire purchase interest 308 434 Borrowing costs capitalised (266) (408) Finance costs (197) 2,877 Finance income Interest income on loans to associate (321) (321) Interest income on loans to directors - (13) Interest income on loans to staff (4) - Finance income (325) (334) Net finance (income)/cost (522) 2,543 * The foreign exchange gains of 1.7m arises primarily in respect of non-euro denominated debt. 15
Notes to the unaudited consolidated financial information 7. Taxation Current tax 000 000 Current tax expense - Ireland 834 1,022 Current tax expense - overseas 860 370 Adjustments in respect of previous periods 216 40 Total current tax 1,910 1,432 Deferred tax Origination and reversal of temporary differences 333 485 Changes in overseas tax rates 37 - Total deferred tax 370 485 Total tax 2,280 1,917 The total tax expense can be reconciled to accounting profit as follows: 000 000 Profit before tax from continuing operations 19,514 13,921 Income tax at 12.5% 2,439 1,740 Non tax deductible expenses 342 975 Non-taxable income (1,039) (991) Income taxable at higher rates 322 153 Adjustments in respect of previous periods 216 40 Total current tax expense 2,280 1,917 8. Intangible assets Operating agreements Franchises Licences Assets under construction Total Cost 000 000 000 000 000 At 01 January 2016 235 755 1,344-2,334 Translation adjustment - (12) (7) - (19) Additions 295 414 185 512 1,406 Disposals (12) - (9) - (21) At 31 December 2016 518 1,157 1,513 512 3,700 Amortisation At 01 January 2016 24 175 475-674 Translation adjustment - (1) (1) - (2) Disposals (1) - - - (1) Amortisation charge 75 55 142-272 At 31 December 2016 98 229 616-943 Net Book Value 31 December 2016 420 928 897 512 2,757 01 January 2016 211 580 869-1,660 16
Notes to the unaudited consolidated financial information 9. Property, plant and equipment Fixtures, fittings and motor vehicles Computer hardware and software Land and Buildings Plant and equipment Assets under construction Total Cost 000 000 000 000 000 000 At 01 January 2016 141,596 11,927 53,428 8,079 19,920 234,950 Translation adjustment (6,054) (353) (2,462) (267) (1,512) (10,648) Additions 23,459 4,725 18,587 2,999 9,126 58,896 Disposals (1,482) (144) (681) (101) (392) (2,800) Reclassifications 8,897 144 444 13 (9,498) - At 31 December 2016 166,416 16,299 69,316 10,723 17,644 280,398 Depreciation/Impairment At 01 January 2016 31,788 1,912 16,161 2,840-52,701 Translation adjustment (905) (27) (520) (95) - (1,547) Charge for the year 2,518 754 5,920 1,698-10,890 Disposals (946) (41) (217) (36) - (1,240) Impairment charge 1,049 151 254 22-1,476 Impairment reversal (1,014) (6) (88) - - (1,108) At 31 December 2016 32,490 2,743 21,510 4,429-61,172 Net Book Value 31 December 2016 133,926 13,556 47,806 6,294 17,644 219,226 01 January 2016 109,808 10,015 37,267 5,239 19,920 182,249 Assets under construction as at 31 December 2016 includes the following significant projects; five service stations in the Republic of Ireland ( 8.4m), two motorway services areas in Northern Ireland ( 6.3m) and one service station in the UK ( 0.5m). The remaining amounts relate to several other developments across all regions. 17
Notes to the unaudited consolidated financial information 10. Inventories 000 000 Raw materials and consumables 981 885 Finished goods 29,292 23,191 30,273 24,076 The cost of inventories recognised as an expense and included in cost of sales amounted to 1,011m (2015: 941m). 11. Trade and other receivables Current 000 000 Trade receivables 4,834 3,058 Provision for impairment (265) (221) Deposits received from customers (45) (42) Net trade receivables 4,524 2,795 Accrued income 2,561 1,697 Prepayments 3,455 3,687 Other debtors 5,161 3,903 Withholding tax receivable 24 325 VAT receivable 1,355 1,613 Amounts due from related companies 2,646 1,250 19,726 15,270 Non-current Other debtors 373 224 373 224 Current trade and other receivables are non-interest bearing and are generally less than 30 day credit terms. Non-current debtors relates to loans advanced to our dealer network. The fair values of noncurrent trade and other receivables is equivalent to their carrying value. The fair value has been determined on the basis of discounted cash flows. 18
Notes to the unaudited consolidated financial information 12. Cash and cash equivalents Cash and cash equivalents included in the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows are analysed as follows: 000 000 Cash at bank 21,002 44,766 Cash in transit 8,372 4,531 Cash and cash equivalents (excluding bank overdrafts) 29,374 49,297 Cash and cash equivalents include the following for the purposes of the statement of cash flows: 000 000 Cash and cash equivalents 29,374 49,297 Bank overdrafts (note 13) (1,635) (2,052) 27,739 47,245 13. Borrowings Current 000 000 Bank overdrafts 1,635 2,052 Bank loans 3,465 3,194 Finance leases 749 968 5,849 6,214 Non-current Bank loans 39,723 44,903 Finance leases 3,227 2,863 42,950 47,766 Total borrowings 48,799 53,980 In March 2015, the Group entered into new banking arrangements with its senior lenders, Allied Irish Bank plc and Ulster Bank Ireland. These new agreements extend the maturity of the Group s debt and make additional facilities available to the Group. 19
Notes to the unaudited consolidated financial information 14. Trade and other payables Current 000 000 Trade payables and accruals 126,105 107,641 Other creditors 1,073 618 Deferred income 1,045 879 Value added tax payable 396 278 Other taxation and social security 1,910 1,717 Amounts due to licensees - 1,886 Amounts due to related parties 419 227 130,948 113,246 Deferred income 5,704 5,624 5,704 5,624 15. Share capital Ordinary No. Authorised Shares of 0.01 each At 31 December 2015 100,000,000 1,000,000 At 31 December 2016 100,000,000 1,000,000 Issued Shares of 0.01 each At 01 January 2016 79,621,053 796,210 Allotted 850,000 8,500 At 31 December 2016 80,471,053 804,710 850,000 share options with an exercise price of 1.00 were exercised. Share premium of 841,500 was recorded on these shares. 16. Post period end events Since the year end, the Group has added one new service area, one petrol filling station and four new dealer sites in the Republic of Ireland, one new service area in Northern Ireland, three petrol filling stations in the UK and two in the USA. The Group will continue to pursue new developments to enhance shareholder value, through a combination of organic growth, acquisitions and development opportunities. The Group also entered into a conditional agreement to acquire a 50% share in the Joint Fuels Terminal in Dublin port from the Topaz Energy Group for a consideration of approximately 15.7m which will be funded from existing resources. The acquisition is subject to the satisfaction of a number of conditions including the approval of the Competition and Consumer Protection Commission. The Directors have proposed a dividend in respect of the 2016 financial year of 1.25 cent per ordinary share, 1m in total. This dividend has not been provided for in the Group balance sheet as there was no present obligation to pay the dividend at the year end. The final dividend is subject to approval by the Company s shareholders at the Annual General Meeting. 20
Glossary of financial terms The key financial terms used by the Group in this report are as follows: Measure Constant currency EBITDA and adjusted EBITDA Description Constant currency measures eliminates the effects of exchange rate fluctuations that occur when calculating financial performance numbers. EBITDA is defined as earnings before interest, tax, depreciation, amortisation and impairment charges. Adjusted EBITDA refers to EBITDA adjusted for share based payments and non-recurring items. The adjusted EBITDA calculation can be found on page 14. Adjusted PBT Adjusted PBT is defined as profit before tax adjusted for share based payments and non-recurring items. Adjusted PBT is calculated as follows: 000 000 Profit before tax 19,514 13,921 Share based payments 1,441 2,667 Non-recurring charges - 1,118 Adjusted PBT 20,955 17,706 Like for like Net debt position Like for like statistics measures the performance of stores that were open at 01 January 2015 and excluding any stores that were closed or divested since that date. Net debt position comprises current and non-current borrowings and cash and cash equivalents. 21