EG group profits plummet from 23 Must Read Articles News Advice Finance Legal Opinion In Business Technology Get Funded Profiles Latest News: EDF buys EV charger firm pod point for just £10m – four years after £352m london float PPE Medpro hits back in £122m DHSC court case, blaming government ‘chaos’ during Covid procurement Firstgroup quietly ends long-running employee director policy Record fall in British exports to US as Trump tariffs bite Poundland sold for just £1 as up to 200 stores face closure amid major restructuring Disney and Universal sue AI firm Midjourney over ‘bottomless pit of plagiarism’ Gold sures euro as second-largest global reserve asset, says ECB UK economy contracts 0.3% in April as growth momentum stalls Government’s spending surge to trigger significant tax rises, says leading advisory firm Michelle Mone-linked PPE firm faces £122m high court battle with government EG group profits plummet from $1.4bn to $10m following Asda forecourt sale.4bn to m following Asda forecourt sale 15726f

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EG Group, the petrol forecourt empire founded by billionaire brothers Mohsin and Zuber Issa, has reported a dramatic fall in pre-tax profits, plunging from $1.4 billion to just $10 million over the past year. 3a284d

The sharp decline follows the sale of the group’s UK convenience store network to Asda and further operational restructuring.

Newly filed s at Companies House show operating profit also fell significantly, from $2.2 billion to $856 million. However, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose modestly, increasing from $1.2 billion to just under $1.4 billion, reflecting what the company called “significant financial progress”.

The drop in profit was largely attributed to the absence of the $1.3 billion windfall generated by the disposal of EG’s UK convenience retail business to Asda in 2023, and the subsequent sale of remaining UK forecourt operations to Zuber Issa last year. Those disposals had significantly bolstered the group’s 2022 financial results.

Like-for-like revenue also declined year-on-year, from $25 billion to $24 billion, with the group citing lower fuel volumes and challenging macroeconomic conditions in several markets.

EG Group, headquartered in Blackburn, was founded in 2001 with a single forecourt in Bury, Greater Manchester. It now operates across nine countries and employs 37,000 staff. Its largest market by revenue remains the United States, followed by key European countries including , , Italy, and the Netherlands, as well as Australia.

In October 2023, EG Group finalised the £2 billion sale of most of its British petrol stations to Asda—the supermarket chain the Issa brothers acquired in 2021 alongside private equity partner TDR Capital through a debt-heavy transaction. That deal reshaped the UK petrol retail landscape and marked a strategic exit from much of EG’s UK footprint.

However, the transition wasn’t without controversy. In 2024, Asda Chairman Lord Rose was forced to issue a public apology after one of the group’s former petrol sites in Surrey was linked to a water contamination incident affecting homes, schools and residents.

Following the Asda deal, Zuber Issa stepped away from the supermarket business, selling his 22.5 per cent stake. He used the proceeds to buy back EG Group’s remaining UK forecourts, launching a new competitor brand, EG On The Move. Despite this, he retains a shareholding in the parent group and continues to sit on the board as a non-executive director.

Meanwhile, Mohsin Issa stepped down as chief executive of EG Group in April, with the role ing to Russell Colaco, the group’s former chief financial officer who ed in June 2023. Colaco is now tasked with steering the company through its next phase of international growth and consolidation.

Commenting on the results, Colaco said the group had made “significant financial progress”, citing the rise in adjusted earnings and progress on debt management. He added that the business remains focused on operational efficiency and long-term growth across its international footprint.

As the group emerges from a period of major structural change, attention will now turn to its performance in core overseas markets and the success of Zuber Issa’s new UK-focused venture.


Jamie Young

Jamie Young 5c4r58

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting. Jamie holds a degree in Business istration and regularly participates in industry conferences and workshops. When not reporting on the latest business developments, Jamie is ionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
Jamie Young

Jamie Young 5c4r58

https://bmmagazine.co.uk/

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting. Jamie holds a degree in Business istration and regularly participates in industry conferences and workshops. When not reporting on the latest business developments, Jamie is ionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.