19th Jun 2007 07:02
Whitbread PLC19 June 2007 WHITBREAD AGM TRADING STATEMENT 19th June 2007 Whitbread PLC will today report a positive start to the year at its AnnualGeneral Meeting. In the 13 weeks to 31st May 2007 total sales for Continuing Whitbread* increasedby 9.8 % on the previous year and like for like sales by 5.6%. Sales for 13 weeks to 31st May 2007 % change vs prior year Like for like sales Total salesPremier Travel Inn 10.1% 13.9%Restaurants 1.5% 2.8%Costa 4.7% 18.4% Continuing Whitbread* 5.6% 9.8% David Lloyd Leisure 3.5% 3.8% Alan Parker, Chief Executive, Whitbread PLC comments: "I am pleased to report that the group has started the new financial year withcontinued growth in all of its businesses. Total sales have grown 9.8% and likefor like sales have grown by 5.6%. Premier Travel Inn has again performed strongly and ahead of the market. We havetoday announced our plans to rebrand the business to Premier Inn. This will beimplemented in the second half of this financial year at a cost of £13m togetherwith £9m of capital expenditure. Our expansion programme in the UK is on planand today we have announced a joint venture in India which plans to open 80hotels with 12,000 rooms over the next 10 years. This will require a Whitbreadinvestment of up to £150m. The recovery programme in Restaurants continues with improved operatingperformance and productivity being seen across the whole business. Theremodelling programme in Beefeater is now complete and the investment programmefor Brewers Fayre continues with a further 100 outlets to be remodelled thisfinancial year. Costa has seen a strong sales performance benefiting from its rapid expansionprogramme and continued like for like sales growth. 55 additional stores havebeen opened in this quarter including 41 in the UK. We announced at the beginning of June that we have conditionally agreed to sellDavid Lloyd Leisure to Versailles Bidco Limited, a company owned by London andRegional Holdings Limited and Bank of Scotland Corporate, for £925m, a sum thatwe believe represents excellent value for our shareholders. Completion isexpected to occur in early August 2007. During the course of the first quarter we also completed the disposal of theT.G.I Friday's business for an aggregate price of £70.4m. At our Preliminary results we stated our plan to increase the level of leveragein the business (on a pension and lease adjusted basis) from under 4 timesadjusted net debt to EBITDAR to under 5 times, an increase of around £400m. Workon effecting this has been ongoing and will now include consideration of thefunds expected to be received on the completion of the David Lloyd Leisure sale.It is our intention to make an announcement on the use of the funds released bythis increased leverage by our half year results. The year's trading has started well with the momentum seen in the second half of2006/7 continuing, despite the environment of rising interest rates. The Boardremains confident that the growth prospects for the Group are good." * Continuing Whitbread Continuing Whitbread comprises Premier Travel Inn, the retained Restaurantestate and Costa but excludes David Lloyd Leisure, the disposed restaurantsites, TGI Friday's and any supply chain sales to third parties. End Conference call for analysts and investorsAlan Parker and Christopher Rogers will be available for a conference call at8.15 am today. To participate, dial +44 (0)207 138 0825 A recording of the conference call will be available for seven days. To listen,dial +44 (0)207 806 1970 and enter the passcode 1483880#. This service will beactive 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) 20 7353 4200Wendy Watherston, Tulchan This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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