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Feb 6 2018, 07:30 GMT
The UK market is a large exposure for Applegreen (28% of gross profit) and a potentially larger opportunity, with almost 5x the number of forecourts in its domestic market. While we think the opportunities in the US market are more significant, the UK still has the potential to be a meaningful contributor to group profit growth over the medium term. In this brief update, we highlight changes in the UK competitive backdrop, which we think could be a net positive for Applegreen. Shorter term, we also suggest that ‘out of town’ retail exposure is proving more resilient than current weakness in the UK high street. FY results are out on March 13th.