UK: GNE To Remain in Petrol Retail

Although it has retained its fuel card business, it would be starting back at square one again to develop service station network.  “There are 9,500 filling stations in the UK, of which 6,000 are independently owned,” he says. “We’ll be out there immediately looking for suitable places to buy, but we don’t want to overpay.”

The shares were trading at 123.5p before GNE announced the £51.56m deal. The move will enable the company to pay a 150p special dividend, pay off its debts, buy out its joint-venture partner and still have £15m in cash to invest.

There are no acquisitions in the immediate pipeline, however. The plan this year was to boost the retail presence at its petrol stations, but this was put on hold when the possibility of the disposal came about.

Either way, there could be a share issue in the offing, according to Woods: “We, perhaps, need to talk to institutions to see whether they are interested in taking on board more shares. Liquidity has been an issue.”

If current tough conditions continue he may find himself very popular with station owners looking to sell, a point he acknowledges. “We have plenty to keep ourselves busy,” he says.

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