Trading Statement - Week 39
Whitbread PLC
11 December 2007
WHITBREAD INTERIM MANAGEMENT STATEMENT
11 December 2007
Whitbread PLC today reports good progress for the 39 weeks ended 29 November
2007.
Sales for 39 weeks to 29 November 2007.
% change vs prior year
Like for like sales Total sales
Premier Inn 10.8% 15.0%
Restaurants 0.4% 1.9%
Costa 6.4% 23.6%
Continuing Whitbread at week 39 5.8% 11.0%
Continuing Whitbread at Week 26 6.3% 10.8%
Alan Parker, Chief Executive, Whitbread PLC comments:
'I am pleased to report that Whitbread continues to enjoy good growth with sales
up by 11.0% and like for like sales up by 5.8%.
Premier Inn, which accounted for 73% of the first half's Group operating profit,
has achieved strong sales growth for the 39 weeks of 15.0% with like for like
sales up by 10.8%. Sustained demand from the corporate market has increased like
for like occupancy on last year by 0.5% to 82.7%. Expansion is ahead of plan
with some 3,500 rooms to be opened this year against our target of 3,000,
assisted by the Tulip Inn hotels acquisition in the UK and Ireland announced in
September 2007. From in depth research of the UK hotel market we are confident
that there is a substantial opportunity for the long-term development of Premier
Inn. In November we opened our 500th UK hotel in Bournemouth. The rebranding as
Premier Inn is now well underway for completion in the Spring when we will be
undertaking a major marketing campaign to launch the brand.
Restaurants, which accounted for 22% of the first half's Group operating profit,
increased sales by 1.9% and like for like sales by 0.4%. This lower level of
growth since the half year is due to the more challenging environment. The
improvement in operating margins due to management action continues and as a
result we expect a substantial improvement in average profitability per
restaurant with a good performance from Beefeater. The remodeling of the Brewers
Fayre estate has continued with 88 now completed. We have opened five new
Restaurants on joint sites, which are trading ahead of expectations.
Costa's sales have increased by 23.6% with accelerated new store openings
continuing to drive total sales together with the strong 6.4% like for like
sales performance. Since the beginning of the year we have had a net increase
of 216 stores worldwide, (123 in the UK and 93 overseas). The total number of
stores is now 923 of which 655 are in the UK and 268 overseas. Our international
expansion continues and we recently announced a new joint venture in Beijing
with the Beijing Hualian Group with plans to open 300 stores in the next five
years doubling our previous target to 600 stores in China.
We continue to move towards a more efficient balance sheet structure. Our
previously announced on market share buy-back has resulted in the purchase of
16.0 million shares representing 8.1% of our share capital, at a cost of £259
million as at 29 November 2007. Net debt as at 29th November 2007 stood at £277
million. On 27 November we were granted shareholder authority to purchase
further shares up to 10% of the outstanding shares over and above our previous
10% authority. This authority will enable the Board to continue to make
purchases of shares, if it considers that to be in the best interest of the
Company.
The second half has continued to show good progress for the Group as a whole.
Trading at Premier Inn, the largest part of the Group, and at Costa, is
resilient and in line with our expectations. Although sales at our Restaurants
continue to be soft the effect of this is being mitigated by operational
improvements. The Board remains confident of the good growth prospects of 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 final results on 28th April 2008 for the 52 weeks to
28th February 2008.
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)207 806
1965.
A recording of the conference call will be available for seven days. To listen,
dial +44 (0)20 7806 1970 and enter the passcode 6322334#. 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) 20 7806 5491
Press Contacts:
David Allchurch, Tulchan +44 (0) 20 7353 4200
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 10 hours ago Savannah Energy
- 11 hours ago Buccaneer Energy PLC
- 11 hours ago Savannah Energy
- 12 hours ago Carclo
- 12 hours ago Schroder Japan Growth Fund