Forecourt operator Maxol has warned that the slowdown in EV (electric vehicle) adoption among Irish motorists could negatively impact the roll-out of its own charging network.
“While we recognise that our sector has a key role to play in supporting EV adoption, we are faced with significant challenges,” Maxol chief executive Brian Donaldson said as the company reported a fall-off in turnover and profit for 2023 on the back lower fuel prices while insisting it remains in a strong financial position with no net bank debt and “a substantial cash surplus”.
“Planning delays and access to power capacity have been issues from day one, but now we are also concerned about developing our charging network too quickly, when the demand isn’t there,” Mr Donaldson said.
“EV technology is evolving continuously, so we have to manage the pace of our own development to safeguard against becoming outdated too soon,” he said.
EV adoption has slowed with new EV sales to October down almost 26 per cent on the previous year.
Maxol’s full-year trading figures for 2023 showed turnover fell by €120 million to €756 million while profit after tax fell by €10 million to €27.5 million. The profit number included a once-off gain from the sale of a “valuable” property in Dublin 4, it said.
Mr Donaldson forecasted an even stronger performance for 2024 following an investment programme of some €65 million during 2023/2024.
Despite continuous investment in its operations and the challenges of the last four years (including Covid pandemic, inflation, Brexit and global geopolitical unrest), Mr Donaldson said the company finished 2023 in a strong financial position.
He said more than 40 per cent of Maxol’s gross profit now comes from non-fuel sales, “which is central to the repositioning of the company as a leading convenience retailer”.
“Income from convenience retail and food and car washing together with new mobility offerings have grown significantly in importance for the group,” he said. “Driving the repositioning of the business is a multi-million investment programme in our store network,” he said.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
