Whitbread, the pub, restaurant, hotel and coffee shop chain, this morning unveiled a 28.4% rise in underlying profit before tax and exceptional items of £151.8m.
Revealing its results for the six months to 2 September 2010 it said total revenue had improved by 14.5% to £805.4m. Profit before tax and exceptional items at the group, which sees Andy Harrison take over as chief executive in November, was £116m, up from £73.1m.
It saw like-for-like sales increase at its restaurants by 4.2%, which was driven by a 7% growth in total covers.
Whitbread added that its return on capital invested had also improved to 13.1%.
Alan Parker, chief executive, said: "These results are testimony to the success of our initiatives to increase market share through organic network expansion and attracting more customers to our hotels, restaurants and coffee shops.
“Our margins have improved as the benefits of both our structural and operating cost reduction programmes are realised. I am delighted that our return on invested capital has increased to 13.1%, well ahead of our cost of capital.”
He added: “Whitbread has performed strongly in both good times and during the recession and is well placed to grow in the current environment. While the economic outlook remains uncertain, we are confident in the outturn for the year.
"Whitbread has strong foundations with a proven management team, who have a disciplined approach to growth, cost control and a relentless focus on our customers.”
A key performer for the business was Costa and Whitbread reported its coffee shop arm had seen operating profits increase by 55.6%. Its saw like-for-like sales growth increase by 8.5% during the period.
It opened 65 new stores in the UK during the period, 32 company operated and 33 franchises and internationally it opened a further 51 outlets.
Whitbread plans to open 130 coffee shops in the second half of 2010 and it reiterated its ambition to have 3,000 stores worldwide by 2014/2015.
Revenues at the company’s restaurants – which included Beefeater, Brewer’s Fayre, Table Table and Taybarns – grew by 4.5% in the half to £247.3m. Like-for-like sales for its restaurants improved by 4.5%.
At Premier Inn, the group’s budget hotel chain, revenue was up by 14% to £355.7m and like-for-like sales increased by 10.1%.
Commenting on its restaurants, the group: said: “Our restaurants continued to outperform the market throughout the first half as we attracted more customers looking for great value food and drink in a comfortable environment.
“They achieved further consistent positive like for like sales growth which is a commendable performance compared to the experience of previous World Cups. Increased occupancy in our hotels also had a positive impact on restaurant sales, enhanced by our well-received and successful £20 meal deal offer for Premier Inn guests.”
Whitbread reduced its debts to £467.2m in its first half, down from £513.4m on 4 March 2010.
It also increased its interim dividend by 16.6% to 11.25p.
