Welcome Break FY turnover rises 1.6% amid new catering outlets

Motorway services operator, Welcome Break, has reported a 1.6% rise in turnover to £484.1m for the year to 31 December 2024, as operating profits before depreciation and property rents increased to £77.3m from £72.7m. 

The group attributed its performance to strong catering sales, while fuel margins offset a slower start to the first quarter of 2024 caused by weak consumer confidence. 

According to Welcome Break’s filing at Companies House, the first quarter was subdued as the UK emerged from high inflation. 

However, directors maintained that the group’s performance strengthened from April, particularly during peak holiday periods.  

Catering units were the main driver of growth, with new outlets from Taco Bell and Pret A Manger opening during the year. Capital expenditure on this side of Welcome Break’s side of the business increased to £11.7m, up from £9.9m in 2023, including spending on new brands as well as upgrades to customer facilities such as toilets, car parks and equipment.

In addition, traffic on motorways serving the company’s sites rose nearly 2%, with turn-ins to the services increasing at a similar rate. Weekend trade was notably higher than pre-pandemic levels, reflecting stronger leisure travel, while weekday commuter visits remained affected by homeworking.

Despite the profit increase, the company’s net asset position fell to £129.3m at the year end, down from £175.2m in 2023. 

Net current assets also dropped to £1.8m, from £38.6m a year earlier, reflecting debt funding arrangements across the group.