11th Dec 2007 07:01
Whitbread PLC11 December 2007 WHITBREAD INTERIM MANAGEMENT STATEMENT 11 December 2007 Whitbread PLC today reports good progress for the 39 weeks ended 29 November2007. Sales for 39 weeks to 29 November 2007. % change vs prior year Like for like sales Total salesPremier 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 salesup 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 likesales up by 10.8%. Sustained demand from the corporate market has increased likefor like occupancy on last year by 0.5% to 82.7%. Expansion is ahead of planwith 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 inSeptember 2007. From in depth research of the UK hotel market we are confidentthat there is a substantial opportunity for the long-term development of PremierInn. In November we opened our 500th UK hotel in Bournemouth. The rebranding asPremier Inn is now well underway for completion in the Spring when we will beundertaking 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 ofgrowth since the half year is due to the more challenging environment. Theimprovement in operating margins due to management action continues and as aresult we expect a substantial improvement in average profitability perrestaurant with a good performance from Beefeater. The remodeling of the BrewersFayre estate has continued with 88 now completed. We have opened five newRestaurants on joint sites, which are trading ahead of expectations. Costa's sales have increased by 23.6% with accelerated new store openingscontinuing to drive total sales together with the strong 6.4% like for likesales performance. Since the beginning of the year we have had a net increaseof 216 stores worldwide, (123 in the UK and 93 overseas). The total number ofstores is now 923 of which 655 are in the UK and 268 overseas. Our internationalexpansion continues and we recently announced a new joint venture in Beijingwith the Beijing Hualian Group with plans to open 300 stores in the next fiveyears doubling our previous target to 600 stores in China. We continue to move towards a more efficient balance sheet structure. Ourpreviously announced on market share buy-back has resulted in the purchase of16.0 million shares representing 8.1% of our share capital, at a cost of £259million as at 29 November 2007. Net debt as at 29th November 2007 stood at £277million. On 27 November we were granted shareholder authority to purchasefurther shares up to 10% of the outstanding shares over and above our previous10% authority. This authority will enable the Board to continue to makepurchases of shares, if it considers that to be in the best interest of theCompany. 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, isresilient and in line with our expectations. Although sales at our Restaurantscontinue to be soft the effect of this is being mitigated by operationalimprovements. The Board remains confident of the good growth prospects of theGroup." * Continuing Whitbread Continuing Whitbread comprises Premier Inn, the retained Restaurant estate andCosta but excludes David Lloyd Leisure, the disposed restaurant sites, TGIFriday's and any supply chain sales to third parties. End Whitbread will announce its final results on 28th April 2008 for the 52 weeks to28th February 2008. Conference call for analysts and investors Alan Parker and Christopher Rogers will be hosting a conference call foranalysts and investors at 8.30am today. To participate, dial +44 (0)207 8061965. 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 beactive 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 ExchangeRelated Shares:
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