Whitbread has reported further recovery at its pub restaurant business, driven by the group's remodelled Beefeater and Brewers Fayre outlets.
Total like-for-like sales at the company were up by 4.3% for the 50 weeks to 15 February, led by an 8.1% increase at the Premier Travel Inn hotel brand. Whitbread's total sales for the period were up 10.3% on the year.
Alan Parker, the company's chief executive, said that full year results were expected to be at the top end of market expectations.
Simon French, analyst at Numis Securities, forecast pre-tax profit of £205.6m for the year to 1 March, with this prediction likely to rise.
The pub restaurants division saw a total sales increase of 2.6%, with like-for-like sales growth turning positive at 0.7%. At the half-year period like-for-like sales were down by 1.2%.
The group said that 19 Brewers Fayres had now been remodelled, with the entire Beefeater estate expected to be completed by the end of April. The company said that it continue to see sustained average sales uplifts of around 25% at the remodelled houses.
At Costa total sales were up 22.1% and like-for-like sales growth increased to 6.7%. During the period 185 new stores were opened, including 78 company-owned and 107 franchise stores, 64 of which were overseas.
At PTI total sales were up by 16.5%. Parker said that the the London market was particularly strong. By the end of the financial year the group will have added its target of 2,500 rooms, with 1,700 from 19 new hotels and the balance through extensions.
Parker said that the company would continue to drive rapid expansion at PTI and Costa, with the pub restaurants and David Lloyd Leisure businesses described as making "good progress".
David Lloyd Leisure reported a 6.0% increase in total sales and a 2.7% increase in like-for-like sales, with French commenting that the group would now come under increased pressure to sell the business. Whitbread attributed the growth to improved productivity and tight cost control.
French forecast further returns of cash to shareholders, predicting £340m and a £50m pension payment.
