Full year results from Premier inn operator Whitbread were released this morning, with the company noting flat revenues and adjusted pre-tax profits, with the dividend being maintained, too. The impact of rising business rates and labour costs has seen management make a series of commitments over the next five years in a bid to maintain a competitive edge, but looking ahead the inflationary hit is now set to be at the upper end of the previously guided range and this is doing little to deliver confidence to investors. The new shape of the business with a further reduced F&B offering will see 3.800 jobs go and it’s difficult not to see this as being directly driven by those rising employment costs. The Whitbread share price was down 6% in early trade.
The water services company United Utilities issued a series of announcements this morning. Whilst full year results lead the pack – revenues up 22% and operating profits some 74% higher, the company also outlined a significant investment plan and an £800m capital raise. Further incremental improvements in revenues are expected for the year ahead whilst the investment program is expected to accelerate the rate of growth of the regulatory asset base. The United Utilities share price was up 11% shortly after the open.
Following the spin out of the ice cream division from Unilever, Magnum published its Q1 update today. The company has a market cap of almost £6bn although doesn’t qualify for FTSE-100 inclusion by virtue of its primary listing being in Amsterdam, but the numbers provided some cheer for investors. Management noted a positive start to the year with organic sales growth and modest margin improvements both eyed as 2026 plays out. The Magnum share price was 11% higher by 9am.
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