Whitbread still thriving in tough times

18th Oct 2011 07:06

Hotel and coffee shop operator Whitbread's relatively low priced offering helped it post a rise in profits in the six months to 1 September despite the tough economic climate. Underlying pre-tax profits were up by 15.2% from the same period the previous year at £174.9m, while total revenues climbed by 10.7% to £891.3m. The interim dividend was lifted by 55.6% to 17.5p.On a like-for-like basis, Whitbread's sales were up by 3.3%. Premier Inn's like-for-like sales climbed by 5.2%, while Costa's rose by 6.7%. There was a decline in the like-for-like performance in the restaurant division.Chief executive Andy Harrison says the company this year plans to open 4,000 new Premier Inn rooms, 14 new restaurants and 300 new Costa stores worldwide. He said that trading remains variable on a month by month basis in a "challenging consumer environment."The first half performance puts the company on track to deliver full year results in line with expectations, he said.---RG