CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Whitbread shares down after profit jump

Article By: ,  Financial Analyst
October 23, 2012 12:45 PM

Shares in Whitbread are lower on the London Stock Exchange this morning (October 23rd) following news the company has enjoyed higher profits.

This is down to a significant increase in sales at the coffee chain Costa, which helped drive half-year profits and revenues at the business.

Whitbread – which also owns Premier Inn and Beefeater Grill and served more than 21 million customers every month – said its underlying pre-tax profit has increased by 10.6 per cent to £193.4 million in the six months to August 30th.

At Costa, underlying profits rose by 29.9 per cent to £36.1 million, marking the 42nd quarter the chain has experienced growth.

Premier Inn also saw a jump in sales, with its demand growing by 12.9 per cent with like-for-like sales growing by 3.7 per cent.

Total revenues at Whitbread now stand at £1.02 billion – which is a rise of 14.2 per cent.

The company is looking to capitalise on its success and the popularity of its brands by expanding. It is looking to further its growth in China, where it currently has 200 Costa outlets, while it will be creating 10,000 more jobs in the coming three years.

It has made 1,500 new positions in the UK and is aiming to add 4,500 rooms at its Premier Inn hotels and open 350 more Costa outlets this year.

Chief executive Andy Harrison said Whitbread's profit report points to a "strong first half performance" while the economic backdrop remains bleak, while he added Costa's performance over recent years as "outstanding".

"Costa's growth is supported by its leading UK position in a robust category, together with exciting international opportunities. This growth in total sales, coupled with our clear focus on good financial returns, is creating substantial value," he added.

At 10:50 BST on the London Stock Exchange, Whitbread's shares slipped by 1.4 per cent to 2290.00p per share, while the FTSE 100 index in London was also lower, retreating by 0.6 per cent to an index value of 5845.5 points.

Find the latest spread betting strategies for the FTSE 100 at City Index.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024