1st Sep 2005 07:01
Whitbread PLC01 September 2005 1 September 2005 Whitbread PLC Trading Statement Today Whitbread PLC announces that total sales for the continuing group havegrown by 12.5% for the first 24 weeks of its financial year (to 18th August2005). Like-for-like sales rose by 0.6%. Underlying total sales, excluding thePremier Lodge acquisition grew by 4.5%. SECOND QUARTER SALES TRENDS24 weeks to 18 August 2005 % change vs prior year Like-for-like sales Total salesPremier Travel Inn 8.0 53.7Pub restaurants (1.0) 3.2High street restaurants (1.7) 3.9David Lloyd Leisure 0.1 2.6Continuing Whitbread 0.6 12.5 Alan Parker, Chief Executive, Whitbread PLC, commented: "In a difficult tradingenvironment we continue to grow sales, which is a testament to the underlyingstrength of our businesses, and the benefit of the Premier Lodge acquisition.Additionally, we have announced today plans to return a further £400 million toshareholders which is some £150 million more than previously indicated and is aclear demonstration of our ongoing commitment to improve returns for ourshareholders. We have now announced this year over £900 million of capitalrestructuring. Premier Travel Inn's sales growth has been strong and the integration synergiesare being achieved. Since the start of the year we have opened more than 500new bedrooms, bringing the total to over 29000. We anticipate adding more than1000 rooms between now and the year end. The new pub restaurants management team continues to make progress. There-branding of all of our Brewsters outlets to Brewers Fayre is now complete;and across the business changes have been made to menu and service style, aspart of the strategy to drive volume. Gross margins are marginally ahead oflast year but this is insufficient to offset the uplift we have experienced inoperating costs, particularly in energy, business rates and minimum wage. Outlet growth remains the driving force behind total sales improvement in highstreet restaurants with Pizza Hut adding seventeen new outlets, TGI Fridaysadding two and Costa opening forty nine new stores since the start of the year.Continuing weakness in retail, not helped by the London bombings, has affectedlike for like sales particularly in Pizza Hut and TGI Fridays. Costa hasmaintained creditable like-for-like sales growth. Sales at David Lloyd Leisure are positive and after the declines in the secondhalf of last year we have seen several months of stable membership in matureclubs. Recent openings, including the latest this year at Kings Hill in Kent,are helping to drive total sales for the brand. Our new club in Barcelona inSpain opened in July with over 3500 members and we will be adding one more clubthis year at Southend-on-Sea in Essex. We have announced today the appointment of Mike Tye, currently ManagingDirector, Premier Travel Inn, as the new Managing Director, David Lloyd Leisure.Mike's strong sales and commercial background make him the ideal leader totake the business forward. Patrick Dempsey, formerly Managing Director ofMarriott will succeed Mike Tye as Managing Director, Premier Travel Inn. Marriott has traded positively with like for like sales growth of 4.0%. Theprocess to dispose of the properties is progressing well. Whitbread has taken a number of steps to improve returns for shareholders.Earlier this year we announced a disposal programme to realise £1.3 billion ofwhich we committed to return half to shareholders. In May we paid a specialdividend of £400 million and over the Summer we have undertaken a review of ourcapital structure. Based on our current investment plans and on the basis thatthis disposal programme achieves proceeds of £1.3 billion we plan to increasethe remaining amount to be returned to shareholders to £400 million; some £150million more than previously indicated. Initially the return will be made viaan on market share buyback programme, which we aim to commence following theannouncement of our half-year results. Going forward we anticipate growing dividends broadly in line with earnings andmaintaining dividend cover around current levels in the medium term. Over the past 12 months we have significantly changed the shape of the Group.We remain committed to our strategy of growing shareholder value throughimproved performance of our market leading positions in budget hotels,restaurants and leisure clubs." Conference call for analysts and investorsAlan Parker and Christopher Rogers will be available for a conference call at 8:30am today. To participate, dial +44 (0) 20 7365 1855. A recording of the conference call will be available for seven days. To listen,dial +44 (0) 20 7784 1024 and enter the passcode 6577943#. This service will beactive approximately one hour after the conference call has finished. For more information please contact: Investor Relations:Dan Waugh, Whitbread PLC +44 (0) 7799 581763 (m) Press Contacts:Anna Glover, Whitbread PLC +44 (0) 7747 766958 (m)Andrew Grant, Tulchan +44 (0) 20 7353 4200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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