Proactive Investors - Run By Investors For Investors

Whitbread plans additional £2bn share buy-back as it spends proceeds from Costa Coffee sale

In presentations delivered at its annual Capital Markets Day, the FTSE 100-listed firm, also forecast a further £220mln in savings over the next three years
Premier Inn
Whitbread also predicted that its German operations would be profitable in fiscal year 2022

Whitbread PLC (LON:WTB) is to buy back an additional £2bn of shares as the owner of Premier Inn uses the proceeds from its $5.1bn sale of the Costa Coffee chain to Coca Cola Co. (NYSE:KO).

In presentations delivered at its annual Capital Markets Day, the FTSE 100-listed firm, also forecast a further £220mln in savings over the next three years and predicted that its German operations would be profitable in fiscal year 2022.

READ: Liberum hoping for some answers from Whitbread bosses at investor event

Whitbread began a programme of share buybacks last month, targeting £500mln in purchases but said it would now return at least £2.5bn to shareholders.

The company also said it was seeking to double its long-term network potential to more than 170,000 hotel rooms in the UK and internationally, with at least 110,000 of those rooms seen in the UK.

It added that it was targeting growth in Germany through investment in freehold and leasehold properties, combined with further acquisitions, to at least 60,000 rooms over the longer-term.

In afternoon trading, Whitbread shares were 2.3% higher at 4,870p, also bolstered by an increase in price target from Liberum Capital in a note published this morning.

The City broker’s analysts said the target hike was based on valuation grounds but added that they hope to see “more strategic clarity” from Whitbread’s bosses at today’s investor event if it is to change its current ‘hold’ recommendation.

View full WTB profile View Profile

Whitbread plc Timeline

Related Articles

Theme Park
March 28 2019
Canaccord Genuity upgraded its rating for accesso to ‘buy’ from hold’ following the e-ticketing and guest experience firm’s recent full-year 2018 results
Oil pollution
July 02 2018
A name change might be in order if PCG pulls the trigger on two investments it is mulling

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use