DUNSTABLE (dpa-AFX) - Restaurant operator Whitbread Plc (WTB.L) on Thursday reported a higher profit for the year, as revenue increased over 11 percent with coffee chain Costa continuing its success story. The shares are up nearly 4 percent.
For the year ended March 1, pre-tax profit advanced to 305.8 million pounds from 271.2 million pounds. Underlying profit before tax grew to 320.1 million pounds from 287.5 million pounds.
Profit attributable to parent shareholders rose to 267.3 million pounds from 223.3 million pounds. Earnings per share grew to 151.19 from 126.73.
Total revenue increased 11.2 percent to 1.778 billion pounds from 1.6 billion pounds. Group like for like sales were up 2.6 percent in the year.
Premier Inn sales grew 8.3 percent to 755.9 million pounds. Like for like sales growth of 3.2 percent was affected by a slowdown in the total hotel market in the second half with an increase of 0.8 percent in the regions and 7.3 percent in London.
Premier Inn will maintain its advertising expenditure on TV and online this year, while it will continue to invest in estate. The company is spending around 70 million pounds, refurbishing some 13,000 rooms over the two financial years to February 2013.
Sales from Restaurants rose 1.8 percent to 483.4 million pounds and like for like sales fell by 0.2 percent for the year.
Coffee chain Costa increased sales by 27.5 percent to 541.9 million pounds and like for like sales were up 5.5 percent. The company plans to open 350 stores in 2012/13, paving way to meet the target growth milestones of 1.3 billion pounds system sales, 3,500 stores worldwide and around 3,000 Costa Express machines by 2015/16.
The company hiked full year dividend 15.2 percent to 51.25 pence from 44.50 pence.
Andy Harrison, Chief Executive, said, 'In the new financial year both Premier Inn and Restaurants have shown positive like for like sales growth and Costa has continued its good momentum, both in the UK and internationally. Trading in 2011/12 was variable month by month and we expect this to continue with short term comparatives affected by the phasing of bank holidays and the Olympics.'
The company plans to open this year 4,200 new Premier Inn UK rooms, six new restaurants and 350 new Costa stores worldwide.
The stock is currently up 3.92 percent at 1,880 pence on a volume of 209,692 shares.
Copyright RTT News/dpa-AFX
© 2012 AFX News
