Roadside plc (AIM: ROAD) has reported a transformational first half as the company accelerates its strategy to build a major UK energy forecourt and convenience retail platform through acquisitions.
The group completed the acquisition of Gardner Retail during the period and has since announced a series of additional transactions that significantly increase its operational scale across the UK forecourt sector.
Chief Executive Charles Dickson said the company had successfully executed a busy six months, combining acquisitions with a substantial equity raise that has strengthened the balance sheet and positioned the business for further growth.
Acquisition-Led Growth Strategy
The most significant completed transaction during the reporting period was the £17.5 million acquisition of Gardner Retail, which operates six petrol filling stations and generated approximately 22 million litres of fuel sales during the previous financial year.
Management expects the acquisition to be immediately earnings accretive.
Alongside the Gardner acquisition, Roadside announced the purchase of D A Roberts Fuels (DAR) for £11.9 million. The acquisition includes a strategically located forecourt and a bulk fuel distribution business that together generated approximately 98.3 million litres of fuel sales. Completion is expected during June 2026.
Following the period end, Roadside further expanded its portfolio through the £28.6 million acquisition of Hoch Group, which operates 12 forecourts and recorded annual fuel sales of approximately 41 million litres. The transaction completed on 16 June 2026.
The company has also agreed to acquire the Ross Road forecourt in Huntley for £2.9 million. The site currently sells around 4.5 million litres of fuel annually and is expected to complete in July.
Strengthened Balance Sheet
To support its expansion programme, Roadside successfully raised approximately £20.75 million through an equity fundraising in February 2026.
The group has also unlocked additional capital through the disposal of part of its holding in Cambridge Sleep Sciences. During the period, Roadside received £14 million from the first tranche of its put option agreement, with a further £14 million received after the reporting period in June.
In addition, the company has secured a new £25 million debt facility with HSBC, alongside an uncommitted £10 million accordion facility. The financing provides additional firepower for acquisitions and growth initiatives.
Financial Performance Reflects Investment Phase
Revenue from continuing operations increased substantially to £3.0 million compared with £0.29 million in the comparable period, reflecting the contribution from acquired businesses.
The company reported an operating loss of £3.96 million and a net loss from continuing operations of £4.40 million. However, results were significantly impacted by £1.37 million of acquisition-related costs associated with completed and ongoing transactions.
Excluding these exceptional items, the net loss from continuing operations would have been reduced to approximately £2.59 million.
Management emphasised that the current financial performance reflects an active investment and consolidation phase rather than a mature operating platform.
Consolidation Opportunity Remains Significant
Roadside believes the UK independent forecourt sector remains highly fragmented, creating a substantial pipeline of acquisition opportunities.
Following completion of Gardner, Hoch, DAR and the Huntley acquisition, the group enters the second half of 2026 with materially increased scale and a significantly larger operational footprint.
Management remains focused on integrating newly acquired businesses, optimising site performance and generating strong cash flow from its growing portfolio while continuing to pursue disciplined acquisition opportunities.
For investors, the key takeaway is that Roadside is rapidly transitioning from a small platform business into a sizeable forecourt operator. While short-term profitability has been impacted by acquisition costs, management is betting that scale, operational efficiencies and consolidation opportunities will drive long-term shareholder value in a fragmented market.
Comment: It has been a stellar period for ROAD, with the company attaining the £100m market cap level, and proving its forecourt strategy is right on the money. What is equally important is that the more cashed up the company is, the easier its to rollout its land grab.
