Whitbread PLC
29 August 2007
WHITBREAD TRADING STATEMENT
29th August 2007
Whitbread PLC today reports a further improvement in performance for the 24
weeks ended 16 August 2007
Sales for 24 weeks to 16th August 2007.
% change vs prior year
Like for like sales Total sales
Premier Inn 11.0% 14.5%
Restaurants 2.0% 3.5%
Costa 7.2% 23.5%
Continuing Whitbread* at week 24 6.6% 11.3%
Continuing Whitbread at Week 13 5.6% 9.8%
Alan Parker, Chief Executive, Whitbread PLC comments:
'I am pleased to report that the Group has improved upon the performance of the
13 weeks to 31st May 2007 with all businesses reporting an increase in like for
like and total sales growth. Total sales have grown 11.3% and like for like
sales have grown by 6.6%.
Premier Inn continues to perform strongly with like for like occupancy at 82.1%,
1.3% pts better than last year. The UK expansion is in line with our plans with
40% of the additional rooms being built on Whitbread owned sites. We have also
provided more focus to our international expansion plans with the appointments
of a Group Development Director, Reas Kondraschow and Aly Shariff, the Managing
Director of our recently announced Premier Inn joint venture in India.
The growth in Restaurants continues to pick up. As a result of the ongoing
improvement in operating performance and the year on year reduction in discounts
there has been an improvement in margins achieved with no price rises. With the
remodelling of Beefeater now complete, our investment programme is primarily
focused on the Brewers Fayre estate where we have remodelled 41 in the year to
date. In addition 4 new Restaurants on joint sites have been added to the
estate.
Costa's total sales increased substantially year on year driven by new store
openings and the strong like for like sales performance. We have opened 76 UK
stores (net of closures 63) in the year to date of which 27 were franchised. In
August we opened our 600th UK store in Wimbledon. Costa's overseas expansion
continues with 52 new stores (net of closures 42) opening, bringing the total to
217.
On 3rd August 2007 we announced that we had completed the sale of David Lloyd
Leisure to Versailles Bidco Limited, a company owned by London and Regional
Holdings Limited and Bank of Scotland for £925m. As previously stated we are
initially using the proceeds to pay off debt.
It remains our intention to increase the leverage of the Group in line with the
framework outlined with our preliminary results in April. Our plans to issue
bonds secured on the hotel and restaurant assets are well advanced. However,
given the current conditions in the debt markets we are considering with our
advisers the most appropriate time to proceed. A further update will be given
with the half-year results in October.
In the meantime, as part of our plan to increase the Group's leverage, we will
today start an on market buyback programme. This buyback will be line with our
current shareholder authority, which allows us to buy back up to 10% of our
issued share capital, and will be funded from existing facilities. At today's
share price 10% of our issued share capital equates to just over £300m.
The positive trend in trading over the last year has continued. This reflects
the strong brand propositions in our refocused group, investment in our
businesses and the concentration on operating performance. The Board continues
to be confident of the good growth prospects for the Group.'
* Continuing Whitbread
Continuing Whitbread comprises Premier Inn, the retained Restaurant estate and
Costa but excludes David Lloyd Leisure, the disposed restaurant sites, TGI
Friday's and any supply chain sales to third parties.
End
Whitbread will announce its interim results on 16th October 2007 for the 26
weeks to 30th August 2007.
Conference call for analysts and investors
Alan Parker and Christopher Rogers will be hosting a conference call for
analysts and investors at 8.30am today. To participate, dial +44 (0)20 7138
0837.
A recording of the conference call will be available for seven days. To listen,
dial +44 (0)20 7806 1970 and enter the passcode 4827053#. This service will be
active approximately one hour after the conference call has finished.
For more information please contact:
Investor Relations:
Christopher Rogers, Whitbread PLC +44 (0) 207 806 5491
Press Contacts:
Andrew Grant, Tulchan +44 (0) 207 353 4200
Wendy Watherston, Tulchan
Editor Notes:
1. Reas Kondraschow was previously Executive Vice President of International
Development at Wyndham Hotel Group, based in the USA, where he oversaw the
growth of Wyndham Hotels, Days Inn, Ramada and Howard Johnson. Reas has also
held a number of senior positions with Marriott International, Holiday Inn
Worldwide and Burger King.
2. Aly Shariff is a key member of the Premier Inn Executive Team with
strategic involvement in the international development plans. He was the HR
Director for Premier Inn and has held a number of senior positions within
Whitbread. Prior to joining Whitbread he held a senior position with Singapore
Airlines Ltd.
This information is provided by RNS
The company news service from the London Stock Exchange
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Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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