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Strong year for forecourt operator as profits treble

A Motor Fuel Group operated
forecourt at
Bridge Street,
St Andrews.
A Motor Fuel Group operated forecourt at Bridge Street, St Andrews.

UK forecourts operator Motor Fuel Group saw its profits treble last year ahead of its takeover of a rival.

Newly published accounts show the group — which runs more than 400 petrol stations — produced revenues of £1.74 billion, a 19% rise from £1.46bn in 2016.

The firm made a pre-tax profit of £24 million for the year ending December 31 2017, up from £7.9m the previous year.

In February Motor Fuel Group announced the acquisition of MRH, the UK’s largest forecourt operator.

The £1.2bn deal will create an operator with 900 sites. MRH also operates retail offerings that include Spar, Budgens, Subway, Costa and Greggs.

Motor Fuel Group has Dundee based Scottish Chambers of Commerce president Tim Allan as a director and former oil veteran and prominent V&A Dundee supporter Alasdair Locke as chairman.

The St Albans based group has a small number of forecourts in Perth and across Fife and many along the M8 corridor in the Central Belt.

In his strategic report to the accounts, director William Bannister said it had been a strong year for the company.

He said: “Trading conditions in the year under review were favourable and the group has continued to deliver a strong financial performance and has grown the size of the network.

“During the year, the group acquired and successfully integrated 35 petrol stations and continued to develop the forecourt offering for both fuel and non-fuel products.”

There was one forecourt disposal during 2017, with the number of sites standing at 439 at the year end.

Mr Bannister added: “2018 has started well for the group.

“The acquisition of MRH will expand opportunities to invest in the network, building on the growth and momentum of 2017.”

At the year end the firm had net assets of £5.4m, up from net liabilities of £14.2m at the end of 2016.