Whitbread PLC
14 June 2005
14 June 2005
WHITBREAD AGM TRADING STATEMENT
Whitbread PLC will today report a positive start to the year to its Annual
General Meeting.
In the 13 weeks to 2 June 2005, excluding Premier Lodge, total sales for
continuing Whitbread increased by 5.0% and including Premier Lodge by 14.1%. On
a like for like basis, sales in continuing Whitbread increased by 1.0% against
the strongest period last year. Including Marriott like for like sales were up
by 1.5%
First Quarter SALES Trends
13 weeks to 2 June
% change vs prior year
Like-for-Like Total
Premier Travel Inn 8.2* 10.4*
Pub Restaurants (1.0) 3.7
High Street Restaurants (0.1) 5.5
David Lloyd Leisure 0.1 2.0
Continuing Whitbread 1.0 5.0
* Travel Inn only
Alan Parker, Chief Executive commented:
This has been a creditable performance in a challenging environment. Operating
costs are being tightly controlled and the initial benefits of our previously
announced cost reduction programme are beginning to be realised.
Premier Travel Inn sales have been excellent, with an accelerating growth trend
as the benefits of the completed integration programme have started to come
through. Occupancy in the first quarter has been marginally down year on year
but this has been more than offset by an uplift in achieved room rate due to mix
and discount elimination in the Premier Lodge sites. With 29,000 bedrooms
Premier Travel Inn is now the UK's largest hotel brand. Up to 1,800 rooms are
due to be opened this year.
Sales in pub restaurants are 3.7% ahead of last year. However on a like for
like basis the performance is disappointing particularly in Brewsters. All 142
Brewsters are being rebranded Brewers Fayre during the first half of the
financial year and 2,800 restaurant covers are to be added. With a new
management team in pub restaurants now in place there is potential for
improvement. A number of opportunities have been identified to drive volume
although it will take several months for the results to show. In the first
quarter three new Brewers Fayres have been opened with 15 more to be added over
the remainder of the year.
High street restaurants have seen total sales grow by 5.5%. Costa delivered
good like for like sales. As the UK's fastest growing coffee shop chain Costa
has opened 16 new sites in the UK in the first quarter with more than 70 planned
by the end of the year and a further 30 internationally. TGI Friday's has
repositioned its menu. This has resulted in like for like sales being
marginally negative but cover volumes have increased by 8%. Four new TGI
Friday's will open by the year-end. Pizza Hut has been affected by lower retail
footfall but long-term prospects are sound and we will open 70 new units this
year.
David Lloyd Leisure has seen total sales growth of 2.0% and like for like sales
have held. Targeted marketing and a major service initiative have helped
membership stabilise since the dip in the second half of last year. In line
with our plans three new clubs will open at Kings Hill in Kent, Southend-on-Sea,
Essex and in Barcelona, Spain.
Over the past year we have substantially reshaped Whitbread for the future and
focused our strategy on our three core business areas. Our joint venture with
Marriott is now established. The Marriott hotels have traded well over the
first quarter with a 4.0% improvement in like for like sales. The process to
dispose of properties in the joint venture has started and the level of interest
received is encouraging. The sale of our German restaurants business has been
completed.
We have recently made a return of £400m to shareholders and have undertaken to
make further returns out of the already announced disposals. We have a clear
commitment to review the efficiency of our capital structure and will continue
to pursue a progressive dividend policy. Our key priority now is to restart
like for like sales momentum in pub restaurants and David Lloyd and to further
improve the profitability of our market leading hospitality business to the full
benefit of our shareholders. Looking to the future the Board remains confident
about prospects for Whitbread.
Lastly, our Chairman Sir John Banham is standing down and we would like to thank
him for his guidance, enthusiasm and commitment to Whitbread, its people and
shareholders. He has been an outstanding Chairman and we wish him every success
in the future.
Conference call for analysts and investors
Alan Parker and Christopher Rogers will be available for a conference call at
8am today (UK time). To participate, dial +44 (0) 20 7784 1014.
A recording of the conference call will be available for seven days. To listen,
dial +44 (0) 20 7784 1024 and enter the passcode 5845070#.
For more information please contact:
Investor Relations:
Dan Waugh, Whitbread PLC +44 (0) 7799 581763 (m)
Simon French, Whitbread PLC +44 (0) 20 7806 5432
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 Exchange
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Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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