Tue 21st Oct 2014 - Whitbread reports group like-for-likes up 7% in Half Year Whitbread reports group like-for-likes up 7% in Half Year: Whitbread has reported that group like-for-like sales grew by 7% in the six months to 28 August. Total revenue was up 13.0% to £1,293.2 million (2013/14: £1,144.7 million). Underlying profit before tax was up 18.5% to £256.0 million (2013/14: £216.1 million). Hotels and restaurants underlying profit was up 15.0% to £225.0 million (2013/14: £195.7 million) while Costa underlying profit grew 20.5% to £52.4 million (2013/14: £43.5 million). Costa total sales were up 16.9%, worldwide system sales up 15.5% and like-for-like sales up 6.1%. Group return on capital increased to 15.8% (2013/14: 14.4%). The company said it is on track for 2016 and 2018 growth milestones. Expected capital expenditure is around £500 million this year, growing its hotel pipeline and Costa estate and further improving our customer experience. A total of 1,300 new UK jobs have been created by Whitbread brands, with a further 10,000 jobs expected over the next three years. Richard Baker, chairman, said: “These results build on our strong growth in profits and dividends over the last five years and show the benefit of long term investment in our growth engines - Premier Inn and Costa. The Board is clear that the financial success of Whitbread is also based on its values, looking after its team members and putting the customer at the heart of everything we do. As Chairman of Whitbread, I am determined to maintain these values to the benefit of employees, customers, shareholders and all of our stakeholders.” Andy Harrison, chief executive, said: “This is a very good set of first half results with total sales growing by 13.0%, driving an 18.5% increase in underlying pre-tax profits. This profit growth converted into strong cash generation with Ebitda up 17.1%, boosted by a 1.4% pts increase in our return on capital to 15.8%. Our cash flow is funding our double digit dividend growth and rapid organic expansion which will drive our future profit growth. Our two market leading brands, Premier Inn and Costa, go from strength to strength and continue to win market share. Premier Inn delivered total sales growth of 14.7% with like for like sales growth of 9.6% and record UK occupancy at 84.0%. Costa delivered total sales growth of 16.9% with like for like sales growth of 6.1% in our UK stores, driven by a 5.0% increase in customer transactions. Our Restaurants business grew its total sales by 4.3%, performing ahead of its industry benchmark. The trading momentum of our strong first half performance has continued into the first few weeks of the second half and positions Whitbread well to deliver full year results in line with expectations. The comparatives become more demanding, especially in the fourth quarter, due to the benign winter weather last year which caused minimal trading disruption. This financial year we expect to invest around £500 million in driving our organic growth and further improving the quality and consistency of our customer experience. We expect to open around 4,500 new Premier Inn UK rooms and around 230 net new Costa stores worldwide. This keeps us on track to achieve our ambitious growth milestones.” Of its pub restaurants, the company stated: “Restaurants delivered a good first half performance, growing total sales by 4.3% and like for like sales by 3.1%, ahead of the Coffer Peach industry benchmark outside the M25. Margins improved against a difficult first half last year, benefiting from less promotional discounting. We have made good progress with the rejuvenation of our brands. This includes investing in our food development, revitalising our menu offering, improving our branding and signage and delivering a more consistent guest experience. The programme to refresh our Brewers Fayre restaurants is now complete and we have converted 21 Beefeater restaurants to our new format. The goal for our restaurants business is to “serve up great memories” and it is pleasing to see that our guest scores have shown an improving trend increasing 1.0% pt to 66.2%.” Of current trading, it stated: “The trading momentum of our strong first half performance has continued into the first few weeks of the second half and positions Whitbread well to deliver full year results in line with expectations. The comparatives become more demanding, especially in the fourth quarter, due to the benign winter weather last year which caused minimal trading disruption.”