Recent Updates on the performance of Hotel Operator - Whitbread Plc (WTB)

  • Nov 18, 2019 GMT
  • Team Kalkine
Recent Updates on the performance of Hotel Operator - Whitbread Plc (WTB)

Whitbread PLC Overview

Whitbread PLC (WTB) is a Dunstable, the United Kingdom-headquartered leading hotel operator in the country, which is the owner and operator of Premier Inn. It is one of the most successful hospitality brands in the United Kingdom. The company aims to be the best budget hotel business in the world, and along with hotels in the Middle East, and Germany, it owns and operates over 1,200 hotels and restaurants across the UK. The group is able to offer high-quality rooms in great locations and great customer value, along with a good return on capital, and operates a unique joint site model, which means that more than half of its hotels are located alongside its own restaurant brands.

Whitbread on 16th Jan 2020, will announce its Q3 trading Update

Whitbread PLC Financial Highlights - H1 Financial Year 2020 (29th August 2019, £, million)

(Source: Interim Report, Company Website)

 For the first half of the 2020 financial year, Adjusted revenue declined slightly by 0.1 per cent to GBP 1,078 million from GBP 1,079 million in the first half of the financial year 2019. Adjusted EBITDA from the UK decreased by 7.2 per cent to £343 million and total revenue from food and beverage grew by 0.6 per cent year-on-year, but like-for-like sales declined by 1.2 per cent (H1 FY19: a decline of 2.6 per cent). The adjusted EBITDAR (Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) declined by 4.8 per cent from GBP 448 million in the first half of the financial year 2019 to GBP 427 million in the first half of the financial year 2020. The adjusted PBT (Profit before tax) (Pre-IFRS 16) was at GBP 251 million in the first half of the financial year 2020 versus adjusted PBT (Profit before tax) (Pre-IFRS 16) of GBP 266 million in the first half of the financial year 2019, a decline of 5.6 per cent for the period. The adjusted PBT (Profit before tax) (Post-IFRS 16) was at GBP 236 million in the first half of the financial year 2020 versus adjusted PBT (Profit before tax) (Post-IFRS 16) of GBP 246 million in the first half of the financial year 2019, a decline of 4.1 per cent for the period. The company’s adjusted basic earnings per share increased 5.4 per cent to 113.0 pence in the first half of the financial year 2020 from 107.2 pence in the first half of the financial year 2019. Statutory operating profit before tax declined to £283 million in the first half of the financial year 2020 from £313 million in the first half of the financial year 2019. The adjusted figure reported a decline to £298.7 million in the first half of the financial year 2020 from £321.8 million recorded in the first half of the financial year 2019. The company’s statutory profit for the period (including Costa in H1 FY19) decreased by 8.1 per cent to £172 million in the first half of the financial year 2020 from £187 million recorded in the first half of the financial year 2019. Statutory profit before tax declined to £219.9 million for the period, while adjusted profit for the period declined to £186.6 million for the period ending 29th August 2019. The group declared an interim dividend of 32.7 pence per share in the first half of the financial year 2020 (H1 FY19: 32.7 pence).

Whitbread PLC Trading Update: First Quarter Financial Year 2020

As on June 19, 2019, the restaurant and bar group reported its trading update for the Q1 of FY20. During the quarter under review, the group’s UK total accommodation sales narrowed by 1.5 per cent, driven by challenging trading conditions. The group also mentioned that its expansion target in Germany to open 7,000 rooms would be achieved. In the same filing, the group reported continued investment in UK and Germany given the long-term structural opportunity.

(Source: Quarterly Report, Company Website)

In the quarter under review, the group’s UK accommodation like-for-like sales growth narrowed by 4.6 per cent, UK accommodation total sales growth declined by 1.5 per cent and the UK and international accommodation sales growth declined 1.3 per cent, whereas UK food and beverages like-for-like sales growth declined by 2.1 per cent, UK food and beverages total sales growth slumped by 0.4 per cent and the UK and International total sales growth sank by 0.4 per cent respectively, which led to UK like-for-like sales growth of negative 3.7 per cent, UK total sales growth of negative 1.1 per cent and the UK and International total sales growth of negative 1.0 per cent, respectively.

Whitbread PLC Share Price Performance

Daily Chart as at 18th November 2019, before the market closed (Source: Thomson Reuters)

On 18th November 2019, while writing at 10:50 AM GMT, Whitbread PLC shares were clocking a current market price of GBX 4,483.00 per share; which was more by 2.21 per cent in comparison to the last traded price of the previous day. The company’s market capitalisation was at £5.86 billion, with a dividend yield of 2.27 per cent at the time of writing.

On 3rd April 2019, the shares of Whitbread PLC have touched a new peak of GBX 5,162.00 and reached the lowest price level of GBX 3,927.00 on 10th October 2019 in the last 52 weeks. The company’s shares were trading at 13.15 per cent lower from the 52-week high price mark and 14.16 per cent higher from the 52-week low price mark at the current trading level as can be seen in the price chart.

The stock’s traded volume was hovering around 3.4,607 at the time of writing before the market close. The company’s 5-day stock's daily average traded volume was 562,415.60; 30 days daily average traded volume- 539,690.00- and 90-days daily average traded volume – 675,507.79. The volatility of the company’s stock was 16 per cent lower as compared with the index taken as the benchmark, as the beta of the company’s stock was recorded at 0.84 with a dividend yield of 2.27 per cent.

The shares of the company have delivered a positive return of 7.34 per cent in the last quarter. The company’s stock declined by 4.21 per cent from start of the year to till date. The company’s stock has given investors 3.31 per cent of a negative return in the last year. 

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