News

Premier performance drives Whitbread profits

14 October 2008 07:04:00

Hotel to coffee chain owner Whitbread posted interim profits up by nearly a quarter as budget hotel chain Premier Inns lifted like-for-like sales by over 10%.

Underlying profits in the six months to August rose by 24% to £123.3m. Like-for-like sales rose 7% with total revenue up 12.6% at £682m. The interim is dividend up by 6% to 9.65p. Pre-tax profits rose to £117m from £93m.

Group revenue was driven by increased sales across all brands with Premier Inn up 17.8%, Restaurants up 6.4% and Costa up 25.6%. Group like for like sales were led by Premier Inn, where sales rose by 10.1%. Restaurants rose by 4.5% like-for-like and and Costa rose by 3.7%.

"Whilst we anticipate that conditions will become more challenging in the remainder of the year, since the end of August the group continues to make good progress across its leading brands in value for money sectors," chief executive Alan Parker said.

Premier's revenue per available room (revpar)rose by 6.1% on occupancy of 79.3% with the group adding an extra 1,800 companies to its business account and business account sales rising by 36 per cent to £86m as business travellers traded down.

Premier opened 1,380 rooms in the first half, taking the total to 37,200 in 532 hotels.

All data suppied by Digital Look (15 minute delay)




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.