Petrol forecourt business Applegreen intends to pay shareholders their first dividend of 1.25 cent per share in June of this year.
According to a trading update in advance of the company’s agm, “Applegreen had a positive start to the 2017 financial year, both in terms of trading and the development of the business”.
Since December 31st, 2016, the retailer added 16 new sites to its estate. Of those, 10 are in Ireland, three are in the UK and two new sites were opened in New England in the US. The trading statement is positive on the company's American prospects: "[We] have made very good progress in generating further opportunities in that region. We have added to our management team to cater for the growth planned."
Applegreen’s plan for development in Ireland and the UK is on track, with the company saying it has a “significant number of prospects in both core markets”.
“The board is very satisfied with the progress and performance of the business for the first four months of the year. This gives us confidence in our ability to meet our growth targets for 2017,” the statement concluded.
In a client note on Monday, analysts at Investec said: “Overall, this is a positive update from the company with encouraging comments on current trading and its ongoing expansion plans. The initiation of a dividend is also welcome and in line with our expectations and we retain our ‘buy’ call.”
