The board of fuel and forecourt retailer Applegreen is proposing a maiden dividend of 1.25 cent per share this June.

The company said it had committed to a "prudent dividend policy" at the time of its IPO and its financial performance since then warrants this move.

In an interim management statement ahead of its AGM today, Applegreen said it had seen a good start to the year particularly in non-fuel sales.

It said its business in Ireland is delivering strong growth, while it also saw good growth in UK food sales as it expands it branded offering there. 

"Overall, the trading performance of the business for the first four months of the year has been in line with the board's expectations," Applegreen's chairman Danny Kitchen said in today's statement.

The company added 16 sites to its estate since the start of the year. The majority of these were in Ireland, while it also opened four new outlets in the UK and it added two new sites in New England in the US.

Mr Kitchen said the pipeline of service areas continues to develop in both Ireland and the UK. 

He said the company had a significant number of prospects in both core markets at various stages of the planning process and it is confident of further expanding its business in its territory.

"The board is very satisfied with the progress and performance of the business for the first four months other year. This gives us confidence in our ability to meet our growth targets for 2017," Mr Kitchen added.

Shares in the company moved higher in Dublin trade today.