Whitbread records double digit profit hike

Whitbread recorded a double digit increase in annual revenue, profit and dividend, following a strong performance from its Premier Inn and Costa brands, despite adverse weather conditions.

Whitbread recorded a double digit increase in annual revenue, profit and dividend, following a strong performance from its Premier Inn and Costa brands, despite adverse weather conditions.

Underlying pre-tax profit rose 11.4% to £356.5m in the year to February 28th 2013. Total revenue for the year rose 14.2% to £2.03bn.

Group like-for-like (LFL) sales were up 3.7%, below Investec's 4.2% estimate after underperformance in the fourth quarter.

Underlying basic EPS rose 12.0% to 150.45p while the full year dividend has been increased 12.0% to 57.40p.

Whitbread Hotels and Restaurants profits climbed 5.9% to £313.1m while Costa profits jumped 29.3% to £90.1m as the colder weather bolstered demand for hot drinks.

Premier Inn total sales increased 13.1% and LFL sales were up 3.1%. Costa total sales advanced 24.1% and LFL sales rose 6.8%.

Chief Executive Andy Harrison said: "Over the last five years, throughout the worst of the economic downturn, Whitbread has grown its sales by 11% per annum and profits by 12% per annum, together with 12% per annum growth in dividends. Return on capital has also increased from 11.4% to 14.0% over that period."

Whitbread said trading in the first few weeks of the new financial year has been in line with expectations and Premier Inn has maintained its positive momentum.

Year end net debt was reduced by £33.2m to £471.1m.

CJ

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021