RNS Number:5863Y
Whitbread PLC
19 June 2007
WHITBREAD AGM TRADING STATEMENT
19th June 2007
Whitbread PLC will today report a positive start to the year at its Annual
General Meeting.
In the 13 weeks to 31st May 2007 total sales for Continuing Whitbread* increased
by 9.8 % on the previous year and like for like sales by 5.6%.
Sales for 13 weeks to 31st May 2007
% change vs prior year
Like for like sales Total sales
Premier Travel Inn 10.1% 13.9%
Restaurants 1.5% 2.8%
Costa 4.7% 18.4%
Continuing Whitbread* 5.6% 9.8%
David Lloyd Leisure 3.5% 3.8%
Alan Parker, Chief Executive, Whitbread PLC comments:
'I am pleased to report that the group has started the new financial year with
continued growth in all of its businesses. Total sales have grown 9.8% and like
for like sales have grown by 5.6%.
Premier Travel Inn has again performed strongly and ahead of the market. We have
today announced our plans to rebrand the business to Premier Inn. This will be
implemented in the second half of this financial year at a cost of £13m together
with £9m of capital expenditure. Our expansion programme in the UK is on plan
and today we have announced a joint venture in India which plans to open 80
hotels with 12,000 rooms over the next 10 years. This will require a Whitbread
investment of up to £150m.
The recovery programme in Restaurants continues with improved operating
performance and productivity being seen across the whole business. The
remodelling programme in Beefeater is now complete and the investment programme
for Brewers Fayre continues with a further 100 outlets to be remodelled this
financial year.
Costa has seen a strong sales performance benefiting from its rapid expansion
programme and continued like for like sales growth. 55 additional stores have
been opened in this quarter including 41 in the UK.
We announced at the beginning of June that we have conditionally agreed to sell
David Lloyd Leisure to Versailles Bidco Limited, a company owned by London and
Regional Holdings Limited and Bank of Scotland Corporate, for £925m, a sum that
we believe represents excellent value for our shareholders. Completion is
expected to occur in early August 2007.
During the course of the first quarter we also completed the disposal of the
T.G.I Friday's business for an aggregate price of £70.4m.
At our Preliminary results we stated our plan to increase the level of leverage
in the business (on a pension and lease adjusted basis) from under 4 times
adjusted net debt to EBITDAR to under 5 times, an increase of around £400m. Work
on effecting this has been ongoing and will now include consideration of the
funds expected to be received on the completion of the David Lloyd Leisure sale.
It is our intention to make an announcement on the use of the funds released by
this increased leverage by our half year results.
The year's trading has started well with the momentum seen in the second half of
2006/7 continuing, despite the environment of rising interest rates. The Board
remains confident that the growth prospects for the Group are good.'
* Continuing Whitbread
Continuing Whitbread comprises Premier Travel Inn, the retained Restaurant
estate and Costa but excludes David Lloyd Leisure, the disposed restaurant
sites, TGI Friday's and any supply chain sales to third parties.
End
Conference call for analysts and investors
Alan Parker and Christopher Rogers will be available for a conference call at
8.15 am today. To participate, dial +44 (0)207 138 0825
A recording of the conference call will be available for seven days. To listen,
dial +44 (0)207 806 1970 and enter the passcode 1483880£. This service will be
active approximately one hour after the conference call has finished.
For more information please contact:
Investor Relations:
Christopher Rogers, Whitbread PLC +44 (0) 207 806 5491
Press Contacts:
Andrew Grant, Tulchan +44 (0) 20 7353 4200
Wendy Watherston, Tulchan
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTIFFIIRIITLID
