Mr Woods said that even though GNE has retained its fuel card business it is looking to again begin developing a service station network. The company is reportedly looking at suitable locations to acquire, but will be cautious not to overpay. With the current economic conditions, the company is confident of finding sellers.
The GBP51.56 million that GNE received for the sale of Petrol Express will be used to pay off its debts, pay shareholders a special GBP1.50 dividend and for investment in new projects. Mr Woods also said that there could be a share issue in the offing.
David Port, GNE’s executive chairman, said: With the cash in GNE of approximately GBP15 million, after the repayment of debt, expenses and the special dividend, the board will seek to repeat its achievement of recent years by pursuing a similar strategy by investing in individual or small groups of retail petrol businesses in order to create a critical mass of quality and well run sites.
As has been demonstrated, such a group is attractive to other companies who are aiming to become large players in the sector and would, in our opinion, therefore be likely to attract a premium. In addition, we will also consider other related businesses where we have suitable experience, for example, expansion into the oil distribution market and we will also consider opportunities that will enhance the remaining businesses held within the group.
