Industry Analysis: EG ON THE MOVE 2 LIMITED

1. Industry Classification

Sector: UK Forecourt Retail (SIC 47300 - Retail sale of automotive fuel in specialised stores)

This company operates within the UK road fuel retail sector, a mature market generating approximately £35-40 billion annually. The sector has undergone significant consolidation over the past decade, shifting from fragmented independent ownership toward large-scale operator models. Forecourt retailing now represents a dual-revenue business: traditional fuel sales (characterised by high revenue, low margin - typically 4-8 pence per litre) and convenience retail/food-to-go (lower revenue but significantly higher margins of 25-60%).

The recent name change from PETROGAS GROUP UK LIMITED to EG ON THE MOVE 2 LIMITED (April 2025) signals alignment with the EG Group brand architecture and reflects the broader industry movement toward "destination retail" positioning rather than pure fuel dispensing.

2. Relative Performance

The company's position within the EG Group/Applegreen corporate structure makes standalone financial comparison challenging, as it likely operates as a holding or special purpose vehicle within a larger group. The £1 share capital and the PSC structure—linking to Eg Retail Services Limited, Petrogas Holdings UK Limited, and Applegreen Plc—indicates this entity functions within a complex group structure serving the wider EG Group empire.

Key observations against industry benchmarks:

• Filing full accounts suggests this entity exceeds small company thresholds or has elected for full disclosure, indicating material scale
• The corporate structure with multiple PSC entities holding 75%+ ownership rights reflects the complex M&A integration following EG Group's acquisition of Applegreen in 2021/2022
• The single director (Zuber Issa) aligns with the founder-led governance typical of the EG Group's management approach

The UK forecourt sector average throughput is approximately 3-4 million litres per site annually for company-owned operations, with top-tier sites exceeding 6 million litres. EG Group's portfolio typically outperforms industry averages on shop revenue per site due to their branded food-to-go partnerships.

3. Sector Trends Impact

Several structural shifts are reshaping this sector:

Consolidation Acceleration: The EG/Applegreen combination created one of the UK's largest forecourt operators with approximately 400+ UK sites. This mirrors wider consolidation—Motor Fuel Group (MFG) acquiring Morrisons forecourts, and oil company divestment programmes creating acquisition opportunities. Independent operators now represent less than 25% of the market, down from over 50% a decade ago.

Energy Transition: The accelerating EV adoption curve presents both existential challenge and strategic opportunity. EG Group has committed to significant EV charging infrastructure investment, but the transition period creates margin pressure as fuel volumes gradually decline while infrastructure capex increases. Current EV penetration (approximately 18% of new car sales) suggests the inflection point for material volume impact remains 5-8 years away.

Food-to-Go Premium: The sector's profit engine has shifted decisively toward convenience and food partnerships. EG Group's relationships with Starbucks, Greggs, Subway, and KFC represent the industry best practice in forecourt retail diversification. Sites with strong food-to-go offers can generate 60-70% of gross profit from non-fuel activities.

Cost Environment: Energy costs, minimum wage increases (April 2024 rise to £11.44), and business rates continue to compress margins. The fuel margin recovery post-pandemic has been partially offset by these structural cost increases.

Regulatory Pressure: The Road Fuel Price Transparency agenda and potential Pump Watch pricing scheme could compress fuel margins further, increasing the strategic importance of retail diversification.

4. Competitive Positioning

Market Position: Leader

As part of the EG Group empire, this entity sits within the UK's second-largest forecourt operator by site count. The competitive positioning is strong:

Strengths: - Scale advantages in fuel procurement and brand partnership negotiations - Diversified revenue streams across fuel, convenience retail, and food-to-go - Access to EG Group's centralised support functions and technology platforms - Strong balance sheet backing from parent group infrastructure - Brand partnerships providing proven footfall drivers

Weaknesses/Vulnerabilities: - High leverage within the wider EG Group structure (typical of private equity-backed consolidators) - Integration complexity from multiple acquisition vintages - Exposure to volatile wholesale fuel costs - Geographic concentration risk in the UK market - EV transition capex requirements creating near-term cash flow pressure

Competitive Context: Against sector norms, EG Group's portfolio metrics typically exceed industry averages on shop revenue and food-to-go penetration. However, the sector-wide margin compression affects all operators, and scale alone does not insulate against fuel volume decline. The competitive moat lies increasingly in retail execution rather than fuel distribution capability.

The competitive landscape pits EG Group primarily against MFG (backed by TDR Capital, notably the same investor as EG Group itself), Rontec, and the supermarket forecourt operators who benefit from destination shopping patterns and aggressive fuel pricing strategies.