Whitbread has reported its results for the financial year to 26 February 2015, with sales, earnings per share and dividends all growing strongly.
Andy Harrison, Chief Executive, said:
“Whitbread had an outstanding year, with a 13.7% increase in total sales, underlying earnings per share growth of 19.4% and a proposed full year dividend per share increase of 19.4%.
Premier Inn, the UK’s favourite hotel chain, grew its total sales by 15.3%, combining revpar growth of 8.7% with a 6.1% increase in rooms available. We also finished the year with record occupancy of 81.3%, up 3.2% pts.
Restaurants had a good year with total sales growth of 3.2% and like for like sales up 2.1%.
Costa, the UK’s favourite coffee shop chain, extended its outstanding track record, with total sales growth of 17.9%, driven by UK like for like sales growth of 6.0%, 219 net new stores worldwide and 777 net new Costa Express machines.
We are continuing to invest in strengthening our brands and organic network growth, including in selected international markets. Our capital investment will rise to c.£700 million in this financial year, up from £565.3million in 2014/15. Our investment programme has created around 3,000 new UK jobs and around 1,000 apprenticeships.
We are delivering good returns on our investment, with return on capital rising to 15.7%, up 0.4% pts from the prior year. Our combination of rapid organic growth and good returns is generating a strong operating cash flow of £714.2 million, up 17.8%.
We are on track to deliver our 2016 and 2018 growth milestones. Today we have published new growth milestones for 2020 which highlight the scale of the opportunity ahead.
Trading in the new financial year has begun on plan, with good momentum for Premier Inn and Costa, and our restaurants business is trading slightly ahead of a subdued market outside the M25.”
| Financial Highlights | 2014/15 | 2013/14 | Change |
| Total revenue (£m) | 2,608.1 | 2,294.3 | +13.7% |
| Underlying profit before tax (£m) | 488.1 | 411.8 | +18.5% |
| Underlying basic EPS (pence) | 213.67 | 179.02 | +19.4% |
| Full year dividend (pence) | 82.15 | 68.80 | +19.4% |
| Hotels & Restaurants underlying operating profit (£m) | 401.4 | 348.1 | +15.3% |
| Costa underlying operating profit (£m) | 132.5 | 109.8 | +20.7% |
- Group like for like sales growth of 6.5%
- Premier Inn total sales growth of 15.3% and like for like sales up 9.1%
- Costa total sales growth of 17.9%, system sales up 16.6% and UK like for like sales up 6.0%
- Group return on capital increased to 15.7% (2013/14: 15.3%)
- Strong cash generated from operations of £714.2 million which funded capital investment of £565.3million
- Strong balance sheet with year end net debt of £583.2 million (2013/14: £391.6 million)
Statutory Highlights
- Profit for the year up 13.2% to £366.1 million (2013/14: £323.4 million)
- Total basic EPS 204.81p up 11.9% (2013/14: 182.98p)
New 2020 Growth Milestones
| Actual | Milestones | |||
| 2014/15 | 2016 | 2018 | 2020 | |
| Premier Inn UK rooms | 59,138 | c.65,000 | c.75,000 | c.85,000 |
| Costa system sales | £1.4bn | c.£1.3bn | c.£2.0bn | c.£2.5bn |
The achievement of these milestones would create around 15,000 new UK jobs over the next five years.
Richard Baker, Chairman, said:
“This is another strong set of results, once again demonstrating the strength of the Premier Inn and Costa brands. We have today published 2020 milestones which show our belief in the continuing profitable growth opportunities available to both of those businesses. Along with our focus on the customer and disciplined investment, it will be our people who will enable us to reach those milestones. We are very proud of our programmes to create new jobs, increase our apprenticeship opportunities and attract the best people to work in our Company.
We have today made a separate announcement concerning Andy Harrison’s planned retirement by February 2016. A process to identify Andy’s successor is underway.”
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