2014 financial highlights
Turnover and sales volumes continued to increase in the financial year ended April 2014 due to a rise in sales volumes, to 15bn litres from 13.5bn litres in the prior year.
Operating profits were £18.4m compared to £19.9m in the prior year, whilst EBITA was £27.2m compared to £30.2m (before exceptions) in the prior year. Margins have continued to be tight in a competitive UK market. Profits this year have largely been depressed by significant one-off impacts such as flooding to our biodiesel manufacturing plant which reduced EBITDA by £4.4m.
In order to support our growing business, we have continued a programme of significant investment in strategically important infrastructure projects. These will give greater control and flexibility in our supply chain and allow us to source from the lowest cost global producers, to support cost reduction and margin growth in the years ahead.
Our market – changes in the UK downstream oil sector
The UK downstream oil sector is currently undergoing a period of fragmentation, with many of the major oil companies disposing of their UK refining, storage, distribution or marketing infrastructure. This fragmentation is fundamentally changing the way that fuel is supplied to petrol stations
Historically oil companies have been vertically integrated in the UK, refining their own fuel and supplying that fuel to their petrol stations. With the sale of refineries to new entrants without established forecourt brands, such vertical integration is becoming increasingly rare. This is putting pressure on all parties to achieve efficiencies.
Greenergy is well positioned to deliver such efficiencies by managing the provision of infrastructure and logistics between refiner and retailer.