TIDMWTB
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Whitbread PLC
26 April 2016
26 April 2016
GOOD GROWTH IN REVENUE, PROFIT AND DIVIDEND
Whitbread PLC results for the 53 week financial year to 3 March
2016
Financial Highlights 2015/16 2014/15 Change
Total revenue (GBPm) 2,921.8 2,608.1 12.0%
Underlying profit(1) before
tax (GBPm) 546.3 488.1 11.9%
Hotels and Restaurants
underlying operating profit
(GBPm) 446.9 401.4 11.3%
Costa underlying operating
profit (GBPm) 153.5 132.5 15.8%
Profit for the year 387.3 366.1 5.8%
Underlying basic EPS(1)
(pence) 238.65 213.67 11.7%
Total basic EPS (pence) 215.66 204.81 5.3%
Full year dividend (pence) 90.35 82.15 10.0%
-- Group total sales growth of 12.0% and like for like sales(2) growth of 3.0%
-- Premier Inn total sales growth of 12.9% and like for like sales up 4.2%
-- Costa total sales growth of 15.9%, system sales up 15.3% and UK like for like sales up 2.9%
-- Group return on capital(3) of 15.3% (2014/15: 15.7%) includes
investments in future hotel openings
-- Strong cash generated from operations of GBP782.2 million
which funded capital investment(4) of GBP724.9 million
-- Strong balance sheet with year-end net debt of GBP909.8 million (2014/15: GBP583.2 million)
Richard Baker, Chairman, said:
"With another good set of results, that continue to show the
strength of Whitbread's brands, the Board is pleased to announce an
increase in the full year dividend of 10%.
This is a very exciting time for the Company; with our recent
senior appointments, we now have a refreshed leadership team, and I
am delighted it is being led by Alison Brittain as CEO, to take us
on the journey to building a bigger as well as a better
Whitbread."
Alison Brittain, Chief Executive, said:
"Whitbread has had another successful year with good growth in
sales of 12.0% and underlying earnings per share increasing by
11.7%, once again demonstrating the strength of our businesses. We
propose a final dividend of 61.85 pence per share, which would
deliver an increase in the full year dividend of 10%.
Both Premier Inn and Costa benefit from attractive market growth
opportunities and we will continue to capitalise on these by
developing our network and brand strength as we fulfil our
ambitions to reach c.85,000 UK hotel rooms and c.GBP2.5 billion
system sales in Costa, by 2020.
The world around us is shifting, with rising customer
expectations, an evolving competitor landscape, rapid technological
developments and changing cost structures. In responding to this
change, I am especially keen to reinforce our relentless focus on
our customers and on innovation to develop our brand propositions
ensuring we stay ahead and become more productive.
I have identified three key strategic themes to develop our
business: grow and innovate in our core UK businesses; focus on our
strengths to grow internationally; and build the capability and
infrastructure to support long-term growth. This strategy will
enable us to deliver our significant growth ambitions, grow
earnings and dividends, maintain good returns on capital and create
further value for our shareholders.
Whilst it is only six weeks into our new financial year we
remain confident of making good progress this year."
Note: 2015/16 is reported as 53 weeks to 3 March 2016 and
information throughout this announcement is on that basis unless
stated otherwise. The comparative period for 2014/15 was 52 weeks
to 26 February 2015.
For further information contact:
Whitbread
Nicholas Cadbury, Group Finance +44 (0) 20
Director 7806 5491
+44 (0) 1582
Anna Glover, Director of Communications 844 244
Joanne Russell, Director of +44 (0) 1582
Investor Relations 888 633
Tulchan
+ 44 (0) 20
David Allchurch 7353 4200
For photographs and videos, please visit the corporate media
library:
www.whitbreadimages.co.uk
A presentation for analysts will be held at Nomura, 1 Angel
Lane, Upper Thames Street, London, EC4R 3AB. The presentation is at
9.30 am and a live webcast of the presentation will be available on
the investors' section of the website at:
http://www.whitbread.co.uk/investors
CHIEF EXECUTIVE'S REVIEW
Introduction
Whitbread has made good financial and operational progress this
year. Our financial success is based on another year of strong
growth in our two leading brands, Premier Inn, the UK's best
economy hotel brand(5) , and Costa, the UK's favourite coffee shop
chain(6) . Behind these two strong brands lies our Customer
Heartbeat model, which puts our customers at the centre of
everything we do.
Critical to our success are our 50,000 team members, who do a
great job in delivering a consistently good experience to the 27
million customers who visit Whitbread's outlets every month. I
would like to thank them for their continuing commitment and for
their contribution to Whitbread's success.
Financial and operational performance
Whitbread had another good year in 2015/16, with a 12.0% growth
in total revenue to GBP2.9 billion, an 11.9% growth in underlying
profit before tax to GBP546.3 million and, with the proposed final
dividend, an increase in the full year dividend of 10.0%.
Hotels & Restaurants underlying operating profit was up
11.3% to GBP446.9 million. Premier Inn grew total sales by 12.9%,
like for like sales by 4.2%, total revpar by 3.1% and the number of
rooms available by 9.8%, with a record 5,461 new UK rooms opened in
the year. Total occupancy remained high as we finished the year at
80.9%. Restaurants grew total sales by 3.5%, like for like sales by
0.8%, ahead of its competitors(7) , and opened four net new
sites.
Costa's underlying operating profit was up 15.8% to GBP153.5
million, with total sales growth of 15.9%. This was driven by UK
like for like sales growth of 2.9%, 197 net new stores worldwide
and 924 net new Costa Express machines.
Our good profit growth delivered strong cash from operations of
GBP782.2 million, up 9.5%. A strong operational cash flow supports
our capital investment programme, as we maintain our market leading
position through re-investment in our estate and by delivering
organic growth to reach our milestones. Our total cash capital
investment for 2015/16, including business combinations, was
GBP724.9 million and we expect to invest a similar amount this
financial year.
Our disciplined financial management enabled us to deliver a
good return on our investments of 15.3% in 2015/16.
The Board recommends a final dividend of 61.85 pence per share,
making a total dividend for the year of 90.35 pence per share, an
increase of 10.0%. The final dividend will be paid on 1 July 2016
to shareholders on the register at the close of business on 27 May
2016.
It is only six weeks into our new financial year. However,
indications are that Costa UK has had a good start to the year and
Premier Inn is growing share in a flat market. However, trading
comparators have been impacted by the early timing of Easter and we
will have a much better view on 21 June when we present our first
quarter trading statement. We remain confident of making good
progress this year.
Strategic focus
Whitbread's success has been built on its unique brand
strengths, significant structural market opportunities and
disciplined capital management. This has enabled profitable growth
over a sustained period, which in turn has delivered strong
shareholder value.
Significant structural market opportunities
Premier Inn and Costa both continue to benefit from significant
structural market opportunities. The budget hotel market is
continuing to grow as the independent sector declines, and there is
an increasing demand for great coffee. Whitbread continues to be
uniquely positioned to capitalise on both of these growing segments
which provides us with confidence that we will achieve our
ambitious 2020 milestones of c.85,000 Premier Inn UK rooms and
c.GBP2.5 billion of systems sales for Costa.
Brand strength
At Premier Inn, we deliver a market leading experience for
business and leisure customers alike. We offer customers the widest
choice of locations in the UK, the best value for money and, by
continually investing in our sites and our teams, a great product
in the market place. This drives brand loyalty and high occupancy
of over 80%, meaning that our hotels are regularly full.
At Costa, we offer customers a great cup of coffee in a warm and
welcoming environment and, with the widest choice of locations, we
are responding to increasing customer demand for coffee anytime,
anywhere.
Disciplined capital management
Whitbread has maintained a disciplined approach to capital
management, with a well-funded, strong balance sheet and a keen
focus on returns. This has enabled the Board to set out a clear
strategy for profitable growth, including the 2020 milestones.
Long-term growth and shareholder value
The environment in which we operate is evolving and we must
evolve with it. Customers are demanding more, both in terms of the
traditional service offering and in terms of a digital experience.
In addition, the competitor environment, cost structures and skills
requirements are changing shape. In order to continue to deliver
sustainable shareholder value in the longer term, it is important
that we meet the challenges of this evolving environment. We must
retain our core strengths, but we must also sharpen our customer
focus and enhance our brands with new propositions to ensure that
they remain market leading in the eye of the customer. We must also
build new capabilities to strengthen the business and deliver an
efficient platform from which to grow.
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 02:01 ET (06:01 GMT)
We have identified three key strategic themes, which will ensure
that our brands get not only bigger, but better:
1. Grow and innovate in our core UK businesses;
2. Focus on our strengths to grow internationally; and
3. Build capability and infrastructure to support long-term
growth.
1. Grow and innovate in our core UK businesses
Premier Inn UK
The structural growth opportunities in the hotel market remain
strong and provide confidence in our c.85,000 room milestone. In
reaching this conclusion we have reviewed and retested our view of
the UK hotel market by catchment and reflected the structural shift
from independents to branded hotels. We expect the UK hotel market
to grow from c.700,000 rooms today to c.740,000 rooms in 2020, with
the branded budget hotels growing from 24% to 29% of the total
market. We have assumed that hotel demand grows over the cycle in
line with GDP growth at just over 2% and, for the first time, we
have adjusted our forecasts to reflect an estimate of the share any
market disruptors might gain. This new network plan indicates that
we have clear headroom to grow our business and gives us confidence
that the current milestones are appropriate.
Our network strength gives customers the greatest choice of
locations and we offer the best value for money through our
continuous focus on the quality and consistency of our product and
service. These in turn result in a high occupancy of 80.9%, which
means our hotels are regularly full, with 86% of bookings direct
through our Premier Inn website.
Network strength
In 2015/16, we opened 40 new hotels taking the total number in
the UK to 737, around 200 more than our nearest competitor. This
network coverage is core to getting customers closer to their
destination, a key consideration for both leisure and business
customers.
Growth opportunities
With nearly 65,000 rooms today and a committed net pipeline of
around 12,700 rooms we are making good progress towards achieving
our 2020 ambition for c.85,000 UK rooms. Furthermore, we are not
compromising on long-term returns, with returns for our committed
UK pipeline by 2020 similar to those achieved today and growing as
the hotels mature.
London remains a strong opportunity for us and, over the past
three years, we have grown our rooms by 11.7% CAGR to over 11,000,
and total sales by nearly GBP100 million to GBP260 million, while
maintaining occupancy at around 86%. Our share of the London hotel
market remains relatively low at 7% and, with a committed pipeline
of c.5,400 rooms, we are on track to grow our London estate to
18,000-20,000 rooms by 2020.
'hub by Premier Inn' is our exciting new compact city centre
hotel concept. It allows us to grow profitably in city centre
locations with high property costs and to deliver a good return on
capital, whilst offering customers great value, high quality rooms
in great locations.
We now have four hub hotels open at St. Martin's Lane (November
2014), Tower Bridge (December 2015) and Brick Lane (February 2016)
in London, and Royal Mile (February 2016) in Edinburgh. Our hub
hotel in St Martin's Lane has now been open for over a year and
guest feedback has been extremely positive with a Trip Advisor
score of 4.5 and high occupancy. Although it is early days, the
other three have begun on a similarly positive note.
The regional hotel market also continues to offer good growth
opportunities, through both existing and new catchment areas. Our
unique freehold backing provides us with a significant opportunity
from our low risk, good returning hotel extensions programme, which
represents some 39% of our future regional growth.
Delivering a consistent quality product
We want Premier Inn to be at the forefront of our customers'
minds when choosing a hotel, so it is important that we continue to
invest in our existing hotels to improve our customer experience
and reinforce our competitive position. Our consistency drives
customer loyalty and enables us to have a revpar premium to our
direct competitors.
Value for money
We prioritise high occupancy and value for money to build
long-term customer loyalty. This approach has resulted in Premier
Inn growing its occupancy by 5.1% pts since 2011/12 to 80.9%,
compared to a 1.6% pts increase in the midscale and economy market
to 78.6%. This focus has been evidenced by consistently high YouGov
value for money scores.
Direct digital distribution
The benefit of offering a consistent quality room and value for
money, combined with a good website, has enabled us to grow our
direct digital distribution from 69% in 2011/12 to 86% in 2015/16.
Through this we are able to provide a better service to our
customers, offering them the lowest price channel along with the
most comprehensive information regarding their stay. At the same
time we benefit from a low cost booking channel and receiving
greater customer insight.
Food and beverage offering for Premier Inn customers
We have recently completed a thorough review of the importance
of our restaurants and the value that they create for Premier Inn.
The key findings are as follows:
-- Breakfast and dinner form a vital part of our customer
offering and it is clear that their provision produces higher
occupancy.
-- Through our unique joint site model we are able to control
the customer journey, guaranteeing the consistency of our product
and service. This generates higher guest scores and, critically,
results in higher hotel revpar and profitability.
-- In addition, our joint site model produces operating and
capital efficiencies and so delivers better returns than both our
hotels adjoining co-located third-party restaurants and our solus
sites.
There are also a number of additional benefits to our joint site
model, these include the ability to exploit our freehold sites for
extensions or site redevelopment and gain access to smaller markets
through the improved total site returns when including the branded
restaurant.
We continue to make good progress in rejuvenating our restaurant
brands and have converted 62 sites to the new Beefeater brand
proposition to date. Furthermore, we have recently launched a
contemporary Beefeater in Birmingham in March this year, Beefeater
Bar + Block, serving all day breakfast, lunch and dinner. This
small format, new joint site model is designed to improve returns
versus those of our solus sites in city and town centres and
although early days, has already received great customer
feedback.
Costa
UK Retail
Costa UK Retail has delivered another good performance, with UK
retail sales growing by 15.7% and like for like sales in UK equity
stores increasing by 2.9%.
Over the past two decades the UK coffee shop market has seen
unprecedented growth and, according to coffee experts Allegra
Strategies, UK branded chains' outlets have grown at around 6% CAGR
over 2008-2014, with further growth expected over the next few
years. Nevertheless, UK coffee consumption remains relatively low
in comparison to many other developed countries.
While coffee venues continue to act as social and community
hubs, customers' demands are evolving. Convenience and coffee
quality remain essential but customers are becoming more
sophisticated with fresher food, faster service, better loyalty
schemes and a greater digital experience becoming increasingly
important to drive customer satisfaction and grow revenue.
As the UK's favourite coffee shop, Costa is well placed to
capitalise on future market opportunities as we plan to grow to
around 2,500 stores by 2020, largely underpinned by more
diversified channel growth.
Our new Costa Fresco concept (launched in December 2015), is
centred on fresh and healthy food and will provide a platform for
us to broaden our food range and quality credentials.
Our 'fast format' Costa Pronto facilitates coffee on-the-go and
is based on our ability to offer fast, friendly service in city
locations where speed is of the essence.
We are also planning to further expand our food range to offer
customers fresher, healthier options, and to introduce new tills
and ovens to increase our speed of service. We will build on the
taste of our great Mocha Italia coffee and continuously improve our
coffee credentials so we can respond to customers' increasing
demands for quality coffee anytime, anywhere. This includes plans
to expand our coffee range through the launch of single origin
coffee and new brewing techniques.
Costa Enterprises
Costa Enterprises had a very successful year, growing system
sales by 14.4% and installing 924 net new Costa Express machines,
giving a total of 5,216 at year-end. We plan to install around a
further 1,000 machines in 2016/17. This puts us well on track to
achieve our target of c.8,000 machines by 2020 as we expand into
new growth channels internationally and in the UK.
2. Focus on our strengths to grow internationally
Premier Inn International
In the Middle East we continue to see long-term growth through
our successful, profitable joint venture. In India and South East
Asia, although there is opportunity for growth, the market remains
operationally challenging and we will assess the opportunities over
the coming year.
Premier Inn Germany
We believe Germany provides an exciting growth opportunity for
Premier Inn with a hotel market that is nearly a third larger than
the UK. It has a fragmented competitor set and a high percentage of
independents which are in gradual decline.
Our first hotel opened in Frankfurt in February this year and
the feedback has been excellent. We have a committed pipeline of
three more hotels with the aim of having six to eight hotels open
by 2020.
We are looking to commit capital of some GBP60-100 million per
annum over the next three years to gather pace in what we perceive
as an attractive market for Premier Inn, and will continue to look
for further opportunities to test the market more quickly.
Costa EMEI
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April 26, 2016 02:01 ET (06:01 GMT)
We have a strong and profitable franchise business with a total
of 696 stores across 24 countries. Our franchise business has grown
rapidly over a number of years and we have learnt a lot about what
makes a successful business model, whether that be via the
partnership model, logistics, localisation or customer demographic.
We intend to focus on growing our position in the best of these
markets and will not be afraid to withdraw from markets where there
is a structural issue. This will allow us to focus our resources
and people on the markets where there is an opportunity for us to
grow profitably and win market share.
Our equity business in Poland has made good progress following
the re-branding of the estate to Costa with the stores delivering
positive like for like sales growth, and we anticipate this
business will return to profitability in 2017.
It is still early days for Costa France and we continue to focus
on developing both our equity and franchise stores in key
locations.
Costa Asia
China remains an exciting opportunity for the Group. We have
targeted around 700 stores by 2020, underpinned by the growing
coffee shop culture and status of western coffee brands as
aspirational. We have a new and experienced management team with a
strong focus on retail and an ambition to enhance our brand
awareness through investing in new store formats, offering better
and more local food and beverage propositions and also enhancing
our digital capability. During the year we opened 39 net new stores
in China giving us a total of 383 stores across 30 cities. As we
move forward we have decided to focus on disciplined profitable
growth across 15 major cities.
3. Build capability and infrastructure to support long-term
growth
In order to build bigger and better brands that maintain their
market leadership positions we need to develop the capability and
platform from which we operate. This will enable us to grow
effectively towards our milestones and beyond.
To achieve this we will need to invest across both brands in a
number of common areas: teams, IT infrastructure, digital and
productivity and efficiency.
Teams
We must employ, train and retain the best teams in higher labour
cost environments, providing them with the optimum technology to do
their jobs, so we can continue to differentiate our customer
proposition through great service. We will also continue to build
on our core international capabilities and the quality and skills
of our local teams.
IT infrastructure
We will upgrade our systems infrastructure to give us greater
resilience as we grow, build faster networks, introduce better data
analytic tools to improve insight and upgrade systems such as our
tills and finance applications. We will also look to build IT
supplier partnerships to support us in developing new customer
propositions and to get the right technology and service for our
customers and teams at the best price.
Digital
As our customers' demand for a greater digital experience
accelerates, we will improve our engagement with them by bringing
more digital capabilities in-house so that we can work in a faster,
more agile way, developing and continually enhancing our websites
and loyalty platforms.
Productivity and efficiency
Alongside our investment plans we will also move productivity
and efficiency up the agenda. Through investing in our
infrastructure and systems we can build a better and more efficient
platform for the future, with greater automation of processes
including dynamic hotel pricing, product management and better
labour management tools, to ensure our teams can deliver great
service in the most efficient way. We can see opportunities in
procurement across the Group by simplifying our operations, being
smarter at refurbishments and focusing our restaurant offering
through fewer brands. Finally, supply chain and logistics
efficiencies will be reviewed given the size and scale of the
business today and in the future.
To help us achieve this there will be a GBP15 million net
P&L investment in 2016/17 across Whitbread.
Good Together
At Whitbread we have some of the UK's favourite and most trusted
hospitality brands. Keeping abreast of, or indeed ahead of, the
trends and concerns which are important to our customers and
communities is vital, whether that be how we look after our
colleagues, how we protect the environment or how we support our
communities. As one of the UK's largest companies, we have the
responsibility and the opportunity to act as a force for good. This
is not just the right thing to do, it is vital if we are to build a
sustainable business for shareholders in the long-term.
We are committed to creating a great place to work and ensuring
our 50,000 team members have development opportunities that will
help them realise their potential. We invest around GBP12 million
annually in skills and development programmes including our WISE
programme (Whitbread Investing in Skills and Employment) which is
focused on supporting young people and those not in education,
employment or training, into work.
We welcome the introduction of the new National Living Wage;
indeed, in Costa we implemented it six months in advance of the
Government's launch date. In Costa and Premier Inn we have taken
the decision to pay the new wage to all employees (including
apprentices), regardless of whether they are over or under 25 years
old.
In April 2015 we set out ambitious 2020 targets for our Good
Together programme and we are making good progress towards
achieving them. Our teams are raising millions of pounds for our
chosen charities of Great Ormond Street Hospital Children's Charity
and the Costa Foundation, helping to improve the lives of children
in the UK and coffee growing communities around the world. We are
also leading the hospitality industry in our innovative work to
build sustainable buildings, so that as we grow we manage our
environmental footprint. A good example is Costa's new Eco Pod
store in Telford which is the UK's first zero energy coffee
shop.
Whitbread Hotels and Restaurants
2015/16 2014/15
-------------------------- ------ -------- -------- ------
Premier Inn revenue GBPm 1,260.1 1,116.4 12.9%
-------------------------- ------ -------- -------- ------
Restaurants revenue GBPm 561.9 542.8 3.5%
-------------------------- ------ -------- -------- ------
Total revenue GBPm 1,822.0 1,659.2 9.8%
-------------------------- ------ -------- -------- ------
Premier Inn like for
like sales* % 4.2 9.1
-------------------------- ------ -------- -------- ------
Premier Inn rooms
UK (no.) 64,599 59,138 9.2%
---------------------------------- -------- -------- ------
Premier Inn like for
like revpar growth
** % 2.6 8.0
-------------------------- ------ -------- -------- ------
Premier Inn occupancy
(total)** % 80.9 81.3
-------------------------- ------ -------- -------- ------
Restaurants like for
like sales* % 0.8 2.1
-------------------------- ------ -------- -------- ------
Restaurants like for
like covers growth % 1.1 0.4
-------------------------- ------ -------- -------- ------
Underlying operating
profit GBPm 446.9 401.4 11.3%
-------------------------- ------ -------- -------- ------
Profit before tax GBPm 439.6 405.0 8.5%
-------------------------- ------ -------- -------- ------
WHR Return on capital*** % 12.9 13.5
-------------------------- ------ -------- -------- ------
* UK & Ireland only and pre-IFRIC 13
** UK & Ireland only
*** Includes investment in future hotel openings
Costa
2015/16 2014/15
---------------------- ------ -------- -------- ------
System sales * GBPm 1,612.8 1,398.7 15.3%
---------------------- ------ -------- -------- ------
Revenue GBPm 1,103.2 951.9 15.9%
---------------------- ------ -------- -------- ------
Like for like sales
(UK)* % 2.9 6.0
---------------------- ------ -------- -------- ------
UK stores (no.) 2,034 1,931 5.3%
------------------------------ -------- -------- ------
International stores
(no.) 1,243 1,149 8.2%
------------------------------ -------- -------- ------
Underlying operating
profit GBPm 153.5 132.5 15.8%
---------------------- ------ -------- -------- ------
Profit before tax GBPm 137.1 125.4 9.3%
---------------------- ------ -------- -------- ------
Return on capital % 49.9 46.3
---------------------- ------ -------- -------- ------
*System sales and like for like sales exclude inter-segment and
are pre-IFRIC 13.
FINANCE DIRECTOR'S REVIEW
Whitbread has continued its good financial performance, with
total revenue up 12.0% to GBP2,921.8 million, underlying profit
before tax up 11.9% to GBP546.3 million, cash generated from
operations of GBP782.2 million and underlying basic earnings per
share up 11.7%. Profit before tax, after exceptional and non
underlying adjustments was GBP487.7 million, up 5.2%.
2015/16 is reported as 53 weeks to 3 March 2016, the comparative
period for 2014/15 is 52 weeks to 26 February 2015. To aid
comparison, we have shown the year on year percentage change both
as reported and on a 52 weeks basis, to 25 February 2016.
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 02:01 ET (06:01 GMT)
Revenue
Revenue by business 2015/16 2014/15 Change Change
segment 52 week
(GBPm) comparative
------------------------ -------- -------- ------- -------------
Hotels and Restaurants 1,822.0 1,659.2 9.8% 7.8%
------------------------ -------- -------- ------- -------------
Costa 1,103.2 951.9 15.9% 14.0%
------------------------ -------- -------- ------- -------------
Less: inter-segment (3.4) (3.0)
------------------------ -------- -------- ------- -------------
Revenue 2,921.8 2,608.1 12.0% 10.1%
------------------------ -------- -------- ------- -------------
Whitbread Hotels and Restaurants
Hotels and Restaurants revenue rose to GBP1,822.0 million, up
9.8%.
Premier Inn grew its market share through new hotel openings and
good like for like sales growth in the UK, with total sales growth
of 12.9% to GBP1,260.1 million. In the UK, we opened 40 new hotels
with 5,461 new rooms, increasing our number of rooms to 64,599 and
rooms available by 9.8%. Like for like sales grew by 4.2% driven by
an increase in the like for like revenue per available room of
2.6%, benefitting from the good performance in the Regions, and
additional revenue from hotel extensions.
Restaurants total sales grew by 3.5% and like for like sales
grew by 0.8%. Four net new restaurants were opened during the
year.
Costa
Costa's revenue grew by 15.9% to GBP1,103.2 million. Costa's UK
sales grew to GBP975.9 million, up 16.3%, with retail like for like
sales increasing by 2.9% and 103 net new coffee shops.
International sales grew to GBP127.3 million, up 12.7% (13.7% in
constant currency) with 94 net new stores. Costa Express performed
well with 924 net coffee machines installed taking the total to
5,216, of which 492 are overseas.
Profit
(GBPm) 2015/16 2014/15 Change Change
52 week
comparative
----------------------------- -------- -------- -------- -------------
Hotels & Restaurants
- UK & Ireland 451.5 406.6 11.0% 8.3%
----------------------------- -------- -------- -------- -------------
Hotels & Restaurants
- International (4.6) (5.2) 11.5% 11.5%
----------------------------- -------- -------- -------- -------------
Totals Hotels & Restaurants 446.9 401.4 11.3% 8.6%
----------------------------- -------- -------- -------- -------------
Costa - UK 151.0 131.4 14.9% 12.5%
----------------------------- -------- -------- -------- -------------
Costa - International 2.5 1.1
----------------------------- -------- -------- -------- -------------
Costa 153.5 132.5 15.8% 13.3%
----------------------------- -------- -------- -------- -------------
Profit from operations 600.4 533.9 12.5% 9.8%
----------------------------- -------- -------- -------- -------------
Central costs (31.6) (29.5) (7.1)% (6.4)%
----------------------------- -------- -------- -------- -------------
Underlying operating
profit 568.8 504.4 12.8% 10.0%
----------------------------- -------- -------- -------- -------------
Interest (22.5) (16.3) (38.0)% (36.2)%
----------------------------- -------- -------- -------- -------------
Underlying profit before
tax 546.3 488.1 11.9% 9.1%
----------------------------- -------- -------- -------- -------------
Exceptional items and
non underlying adjustments (58.6) (24.3)
----------------------------- -------- -------- -------- -------------
Profit before tax 487.7 463.8 5.2% 2.2%
----------------------------- -------- -------- -------- -------------
Profit impact of 53(rd) GBPm
week
-------------------------- -----
Hotels and Restaurants 11.0
-------------------------- -----
Costa 3.4
-------------------------- -----
Underlying profit before
tax 13.9
-------------------------- -----
Whitbread's underlying profit before tax was up 11.9% to
GBP546.3 million. Underlying profit before tax excludes the pension
interest charge, amortisation of acquired intangibles and
exceptional items.
Hotels and Restaurants profits grew to GBP446.9 million up
11.3%, with UK profits of GBP451.5 million, up 11.0%. Margins
improved from 24.2% to 24.5% in 2015/16, principally driven by like
for like sales growth, partially offset by inflation and investment
in our teams and systems. Rent costs increased, ahead of sales
growth, by 14.8% to GBP123.4 million (2014/15: GBP107.5 million),
reflecting the higher mix of leasehold properties.
We continue to improve our customer propositions and develop the
capabilities and platform to support future growth. During 2015/16,
we increased the number of full room refurbishments to around 3,700
rooms, completed the roll out of our 'best ever' bed and installed
around 2,000 air-conditioning units. We increased our revenue
investment in technology and process improvements to enable us to
grow our digital capabilities and evolve our systems. This
continued improvement in our products and capabilities will amount
to an approximate GBP9 million net incremental revenue spend in
2016/17.
International hotel losses reduced to GBP4.6 million (2014/15:
loss of GBP5.2 million), with our Middle East hotels continuing to
be profitable in a more challenging market, whilst India has seen
good like for like growth, albeit from a low base. We continue our
investment in building our South East Asia operation and opened our
first hotels in Thailand and Indonesia.
Costa's good performance was led by the UK, where profits
increased 14.9% to GBP151.0 million, with good growth in our UK
retail business and continued strong growth from Costa Express.
Costa International made a profit of GBP2.5 million (2014/15:
profit GBP1.1 million) with a good performance in our international
franchise business and in our mature stores in China, partially
offset by start-up investments in Costa Express in Canada and Costa
retail in China and France.
In Costa, as with Hotels and Restaurants, we are investing in
our future growth, building the platforms of our international
businesses and ensuring the continued success of our core UK
business. In 2015/16, we completed the re-branding of our Polish
stores from Coffeeheaven to Costa and this year, we will continue
to invest in our international and digital talent capabilities, new
store formats with the launch of Fresco and Pronto, and in food and
beverage innovation. We are investing in our systems, customer
loyalty through the Costa Pay & Collect trial, and our new
Roastery, to ensure we can meet future capacity requirements to
deliver great coffee to our customers worldwide. These revenue
investments will amount to approximately GBP6 million net
incremental spend in 2016/17.
Profit before tax was GBP487.7 million (2014/15: GBP463.8
million), up 5.2% and after taxation, statutory profit for the year
was GBP387.3 million, up 5.8% on last year.
Exceptional items
Exceptional items and non underlying adjustments for the year,
including tax related adjustments, amounted to a charge of GBP42.9
million (2014/15: a charge of GBP17.1 million).
This year's exceptional items primarily relate to an increased
provision for onerous leases on historically disposed businesses
(GBP14.7 million), accelerated amortisation on IT intangibles where
there is no future economic benefit arising from these assets
(GBP10.1 million) and charges for the closure and impairment of
loss making Costa stores principally in China and Europe (GBP11.6
million). This is offset by a tax credit of GBP13.0 million due to
the change in the tax rate from 20.0% to 18.0%.
Non underlying adjustments also include amortisation of acquired
intangibles (GBP4.3 million) and the IAS 19 income statement charge
for pension finance cost (GBP17.2 million).
Full details are set out in note 5 to the financial
statements.
Interest
The underlying interest charge for the year was higher than last
year at GBP22.5 million (2014/15: GBP16.3 million) due to a higher
mix of fixed rate debt following the GBP450 million bond issue in
May and higher average net debt as a result of the increase in
capital expenditure. Whilst we have a balanced interest rate policy
concerning the fixed to variable proportions, the Group decided to
take advantage of the low interest rate environment at the time of
the bond issue. The bias towards fixed interest rate debt with 89%
fixed at year-end will continue for the short-term.
The effective interest rate on average net debt increased from
4.3% to 4.7%.
The total interest cost including exceptional and non underlying
interest costs, was GBP40.4 million (2014/15: GBP37.1 million)
including the IAS 19 pension finance charge of GBP17.2 million
(2014/15: GBP21.6 million).
Taxation
Underlying tax for the year amounted to GBP116.1 million at an
effective tax rate of 21.3% (2014/15: 21.5%). Full details are set
out in note 6 to the financial statements.
Earnings per share
Underlying basic earnings per share for the year were 238.65
pence, up 11.7% on last year, and underlying diluted earnings per
share for the year were 236.82 pence, up 11.9% on last year. Full
details are set out in note 7 to the financial statements.
Dividend
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April 26, 2016 02:01 ET (06:01 GMT)
The recommended final dividend is 61.85 pence, an increase on
last year of 8.6%, making the total dividend for the year 90.35
pence, a growth of 10.0%. With the final dividend, we will offer
our shareholders the option to participate in a dividend
reinvestment plan. Full details are set out in note 8 to the
financial statements.
Net debt and free cash
The principal movements in net debt are as follows:
GBPm 2015/16 2014/15
-------------------------------- -------- --------
Cash generated from operations 782.2 714.2
-------------------------------- -------- --------
Productive improvement and
maintenance capital* (214.8) (175.7)
-------------------------------- -------- --------
Operating cash flow after
maintenance capital 567.4 538.5
-------------------------------- -------- --------
Interest (25.0) (18.3)
-------------------------------- -------- --------
Tax (85.1) (82.8)
-------------------------------- -------- --------
Pensions (84.3) (81.4)
-------------------------------- -------- --------
Dividends (155.1) (130.6)
-------------------------------- -------- --------
Other (34.4) (27.4)
-------------------------------- -------- --------
Cash flow before expansionary
capital 183.5 198.0
-------------------------------- -------- --------
Expansionary capital* (510.1) (389.6)
-------------------------------- -------- --------
Net cashflow (326.6) (191.6)
-------------------------------- -------- --------
Net debt brought forward (583.2) (391.6)
-------------------------------- -------- --------
Net debt carried forward (909.8) (583.2)
-------------------------------- -------- --------
*Total capital expenditure 724.9 565.3
-------------------------------- -------- --------
Cash generated from operations was strong at GBP782.2 million,
an increase of 9.5% on last year.
Total capital expenditure, including business combinations, rose
to GBP724.9 million (2014/15: GBP565.3 million). This resulted from
our continued investment in our hotel room pipeline including
freehold property purchases, along with further investments in our
existing estate and IT systems. Within this, there were also
investments and business combinations of GBP9.1 million for our
hotel acquisition of Pattaya in South East Asia.
Pension payments totalled GBP84.3 million; these payments are in
line with our agreed schedule of contributions which was based on
the last triennial review in March 2014.
Dividend payments amounted to GBP155.1 million (2014/15:
GBP130.6 million), the increase in this year's dividend payments is
consistent with the Group's basic earnings per share growth.
Corporation tax paid in the year was GBP85.1 million (2014/15:
GBP82.8 million).
We maintained our adjusted net debt to EBITDAR ratio (see
financial status and funding) with net debt as at 3 March 2016 of
GBP909.8 million (2014/15: GBP583.2 million).
Capital expenditure
On an accruals basis, the Group's capital expenditure, including
business combinations, was GBP751.8 million (2014/15: GBP567.5
million). The Group's cash capital expenditure was GBP724.9 million
(2014/15: GBP565.3 million), including business combinations.
Capital expenditure is split between expansionary (which includes
the acquisition and development of properties) and product
improvement and maintenance.
Hotels and Restaurants cash capital expenditure was GBP622.3
million (2014/15: GBP483.1 million), with expansionary expenditure
increasing to GBP455.2 million (2014/15: GBP333.3 million) as we
opened a record number of rooms and maintained our gross pipeline
at c.13,900 rooms (net 12,700 rooms), including c.5,400 in London.
Within this, we acquired GBP209.6 million of freehold property
(2014/15: GBP191.8 million) and now our freehold pipeline is at 52%
of the total pipeline compared to 41% at the end of 2014/15.
Premier Inn Germany accounted for GBP61.6 million of expansionary
capital as Frankfurt opened in February 2016 and we exchanged on
two further sites in Munich and Leipzig. Product improvement and
maintenance cash expenditure in Hotels and Restaurants was GBP167.1
million (2014/15: GBP149.8 million). This was an increase on the
previous year as we stepped up the number of full refurbishments,
and increased the investment in our hotels technology
infrastructure and in our systems.
Costa cash capital expenditure was GBP102.6 million (2014/15:
GBP82.0 million) with GBP54.9 million on expansionary capital as we
opened 197 new coffee shops and installed 924 net new Costa Express
machines. Costa product improvement and maintenance expenditure was
GBP47.7 million (2014/15: GBP25.9 million), the majority of which
was spent on re-imaging 139 Costa stores and on investment in our
systems and our new Roastery.
In 2016/17, we expect our gross cash capital expenditure to be
around GBP700 million and around GBP550-600 million net of the
proceeds of around GBP100-150 million from sale and lease back
transactions. Hotels and Restaurants spend is expected to be
c.GBP560 million, with around 4,000 to 4,500 room openings, and the
higher freehold and extensions pipeline mix maintained. Within
this, we expect to spend c.GBP60 million acquiring German hotel
sites to add to our pipeline, following the opening of our first
hotel in Frankfurt in February. Hotels and Restaurants product
improvement and maintenance investment will be maintained, as we
continue to improve our customer experience and competitive edge
and continue to improve our digital and systems capabilities. Costa
cash capital expenditure will increase by c.GBP40 million to around
GBP140 million. Included within this is c.GBP25 million that we
expect to spend on our new Roastery and c.GBP45 million on
refurbishments and product improvement. Costa is planning to open
around 230 -250 coffee shops and to install c.1,000 Costa Express
machines.
In addition to capital expenditure, our leasehold commitments
increased by GBP64.0 million to GBP2,896.7 million with Hotel and
Restaurants at GBP2,567.6 million (2014/15: GBP2,464.1 million) and
Costa GBP282.0 million, (2014/15: GBP283.8 million).
Return on capital
Return on capital is a prime focus for Whitbread. In the year,
the Group's return on capital of 15.3% (2014/15: 15.7%) delivered a
good premium to our cost of capital. Costa's returns were up 3.6%
pts to 49.9% and Hotels and Restaurants returns were strong at
12.9%. Hotels and Restaurants returns were down 0.6% pts on last
year due to the increased investment in freehold developments for
future hotel openings in the UK and Germany. Excluding this
investment returns in Hotels and Restaurants would have been 1.5%
pts higher at 14.4%.
Pension
As at 3 March 2016, there was an IAS 19 pension deficit of
GBP288.1 million (2014/15: GBP553.8 million). The main movements
during the year were the payments of the pension contributions of
GBP84.3 million and an increase in the discount rate from 3.30% to
3.70%.
The 2014 triennial funding valuation and recovery plan agreed in
the prior year maintains the schedule of Company contributions
agreed in the 2011 recovery plan up to 2018 and extends the
contributions to 2022. The recovery plan schedule of Company
contributions are GBP70 million in 2016, GBP80 million per annum
for 2017 to 2021 and GBP7.6 million in 2022. The payments will be
accelerated by up to GBP5 million per year where increases in
ordinary dividends exceed RPI. The annual payment previously paid
in August will be phased across the year in equal monthly
payments.
The Company also makes payments of c.GBP9-10 million per year
into the pension fund through the Scottish Partnership
arrangements.
Financial Status and funding
Whitbread aims to maintain its financial position and capital
structure consistent with retaining its investment grade debt
status. To this end, we work within the financial framework of net
debt to EBITDAR (pension and lease adjusted) of less than 3.5
times. The net debt to EBITDAR for 2015/16 was 3.1 times, providing
us with comfortable headroom on our debt facilities.
The Group has sufficient facilities to finance our short and
medium-term requirements with total committed facilities of
c.GBP1.7 billion, compared to net debt as at 3 March 2016 of
GBP909.8 million. On top of the existing US Private Placement loans
of GBP258 million (at the hedged rate), and as announced in May
2015, we issued a GBP450 million bond with a coupon of 3.375% and a
maturity of October 2025. In addition, in September 2015 Whitbread
renegotiated the terms and tenure of its syndicated bank revolving
credit facility ("RCF") with both existing and new banking
partners. The revised RCF gives a total available credit of GBP950
million and runs until September 2020 with the option of two
one-year extensions potentially taking the facility to September
2022.
Going concern
A combination of the strong operating cash flows generated by
the business and the significant headroom on its credit facilities
supports the directors' view that the Group has sufficient funds
available for it to meet its foreseeable working capital
requirements. The directors have concluded that the going concern
basis remains appropriate.
Trading updates
We will be changing the regularity with which we provide market
updates, moving to two trading statements in addition to the
Interim and Preliminary announcements. The first update will be in
June for 13 weeks of trading with the Interim results in October
remaining as previously announced. There will be an update in
January for the third quarter extended to 44 weeks to include the
key December trading period and the full year announcement in
April.
Post balance sheet events
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 02:01 ET (06:01 GMT)
A final dividend of 61.85p per share (2014/15: 56.95p) amounting
to a total of GBP112.4 million was declared by the Board on 25
April 2016.
Notes
(1) Underlying profit and underlying EPS
Underlying profit excluding amortisation of acquired
intangibles, exceptional items and the impact of the pension
finance cost as accounted for under IAS 19. Underlying basic EPS
represents the basic earnings per share based on the above
underlying profit definition and the tax thereon.
(2) Like for like sales stated pre-IFRIC 13 adjustment for
Premier Inn - UK and Ireland, Costa and Restaurants - UK.
(3) Return on capital is the return on invested capital which is
calculated by dividing the underlying profit before interest and
tax for the year by net assets at the balance sheet date adding
back debt, taxation liabilities and the pension deficit.
(4) Including investments in business combinations.
(5) British Travel Awards 2015
(6) Allegra
(7) Coffer Peach benchmark pub restaurants outside of the
M25
Consolidated income statement
Year ended 3 March 2016
Year to Year to
3 March 26 February
2016 2015
Notes GBPm GBPm
--------------------------------------- ------ ----------
Revenue 4 2,921.8 2,608.1
Operating costs (2,397.9) (2,110.6)
---------- -------------
Operating profit 523.9 497.5
Share of profit from joint ventures 3.3 2.6
Share of profit from associate 0.9 0.8
---------- -------------
Operating profit of the Group,
joint ventures and associate 528.1 500.9
Finance costs (41.2) (39.4)
Finance revenue 0.8 2.3
---------- -------------
Profit before tax 4 487.7 463.8
Analysed as:
Underlying profit before tax 4 546.3 488.1
Exceptional items and non underlying
adjustments 5 (58.6) (24.3)
Profit before tax 487.7 463.8
--------------------------------------- ------ ---------- -------------
Tax expense (100.4) (97.7)
Analysed as:
Underlying tax expense 6 (116.1) (104.9)
Tax on exceptional items and
non underlying adjustments 5 15.7 7.2
---------- -------------
Tax expense 6 (100.4) (97.7)
--------------------------------------- ------ ---------- -------------
Profit for the year 387.3 366.1
---------- -------------
Attributable to:
Parent shareholders 391.2 370.1
Non-controlling interest (3.9) (4.0)
---------- -------------
387.3 366.1
---------- -------------
Year to
Year to 26 February
3 March 2016 2015
Earnings per share (Note 7) pence pence
------------------------------ ------------- ------------
Earnings per share
Basic 215.66 204.81
Diluted 214.00 202.79
Underlying earnings per share
Basic 238.65 213.67
Diluted 236.82 211.56
Consolidated statement of comprehensive income
Year ended 3 March 2016
Year to
Year to 26 February
3 March 2016 2015
Notes GBPm GBPm
--------------------------------------- ----- ------------- ------------
Profit for the year 387.3 366.1
Items that will not be reclassified
to the income statement:
Re-measurement gain/ (loss) on
defined benefit pension scheme 201.6 (76.3)
Current tax on pensions 6 14.7 15.4
Deferred tax on pensions 6 (55.4) 0.8
Deferred tax: change in rate
of corporation tax on pensions 6 (0.7) -
------------- ------------
160.2 (60.1)
Items that may be reclassified
subsequently to the income statement:
Net gain / (loss) on cash flow
hedges 6.5 (3.0)
Current tax on cash flow hedges 6 (0.9) -
Deferred tax on cash flow hedges 6 (0.4) 0.6
Deferred tax: change in rate
of corporation tax on cash flow
hedges 6 (0.1) -
------------- ------------
5.1 (2.4)
Exchange differences on translation
of foreign operations 7.1 1.7
Other comprehensive income/ (loss)
for the year, net of tax 172.4 (60.8)
Total comprehensive income for
the year, net of tax 559.7 305.3
------------- ------------
Attributable to:
Parent shareholders 563.5 309.3
Non-controlling interest (3.8) (4.0)
------------- ------------
559.7 305.3
------------- ------------
Consolidated statement of changes in equity
Year ended 3 March 2016
Capital Currency
Share Share redemption Retained translation Other Non-controlling Total
capital premium reserve earnings reserve reserves Total interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- -------- ----------- --------- ------------ ---------- -------- ---------------- --------
At 27 February
2014 149.6 56.2 12.3 3,644.5 (3.1) (2,086.0) 1,773.5 9.5 1,783.0
Profit for
the year - - - 370.1 - - 370.1 (4.0) 366.1
Other
comprehensive
loss - - - (59.5) 1.7 (3.0) (60.8) - (60.8)
-------- -------- ----------- --------- ------------ ---------- -------- ---------------- --------
Total
comprehensive
income - - - 310.6 1.7 (3.0) 309.3 (4.0) 305.3
Ordinary
shares
issued 0.2 3.0 - - - - 3.2 - 3.2
Loss on ESOT
shares issued - - - (8.1) - 8.1 - - -
Accrued
share-based
payments - - - 13.5 - - 13.5 - 13.5
Tax on
share-based
payments - - - 3.1 - - 3.1 - 3.1
Equity
dividends - - - (130.6) - - (130.6) - (130.6)
Additions - - - - - - - 0.4 0.4
-------- -------- ----------- --------- ------------ ---------- -------- ---------------- --------
At 26 February
2015 149.8 59.2 12.3 3,833.0 (1.4) (2,080.9) 1,972.0 5.9 1,977.9
-------- -------- ----------- --------- ------------ ---------- -------- ---------------- --------
Profit for
the year - - - 391.2 - - 391.2 (3.9) 387.3
Other
comprehensive
income - - - 158.8 7.0 6.5 172.3 0.1 172.4
-------- -------- ----------- --------- ------------ ---------- -------- ---------------- --------
Total
comprehensive
income - - - 550.0 7.0 6.5 563.5 (3.8) 559.7
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 02:01 ET (06:01 GMT)
Ordinary
shares
issued 0.2 3.4 - - - - 3.6 - 3.6
Loss on ESOT
shares issued - - - (6.7) - 6.7 - - -
Accrued
share-based
payments - - - 17.3 - - 17.3 - 17.3
Tax rate
change
on historical
revaluation - - - 1.3 - - 1.3 - 1.3
Equity
dividends - - - (155.1) - - (155.1) - (155.1)
At 3 March
2016 150.0 62.6 12.3 4,239.8 5.6 (2,067.7) 2,402.6 2.1 2,404.7
-------- -------- ----------- --------- ------------ ---------- -------- ---------------- --------
Consolidated balance sheet
At 3 March 2016
3 March 26 February
2016 2015
Notes GBPm GBPm
-------------------------------------- ----- ---------- ------------
ASSETS
Non-current assets
Intangible assets 258.1 248.1
Property, plant and equipment 3,831.0 3,278.4
Investment in joint ventures 39.5 30.3
Investment in associate - 2.0
Derivative financial instruments 21.6 2.2
Trade and other receivables 7.7 7.3
4,157.9 3,568.3
Current assets
Inventories 44.8 37.1
Derivative financial instruments 3.2 1.2
Trade and other receivables 140.0 124.0
Cash and cash equivalents 9 57.1 2.1
---------- ------------
245.1 164.4
Assets held for sale 2.3 1.1
Total assets 4,405.3 3,733.8
LIABILITIES
Current liabilities
Financial liabilities 9 94.0 73.1
Provisions 14.7 6.7
Derivative financial instruments 4.4 4.8
Income tax liabilities 6 41.2 35.4
Trade and other payables 538.2 464.1
---------- ------------
692.5 584.1
Non-current liabilities
Financial liabilities 9 872.9 512.2
Provisions 22.7 27.8
Derivative financial instruments 9.6 13.8
Deferred income tax liabilities 6 94.7 43.7
Pension liability 288.1 553.8
Trade and other payables 20.1 20.5
---------- ------------
1,308.1 1,171.8
Total liabilities 2,000.6 1,755.9
Net assets 2,404.7 1,977.9
---------- ------------
EQUITY
Share capital 150.0 149.8
Share premium 62.6 59.2
Capital redemption reserve 12.3 12.3
Retained earnings 4,239.8 3,833.0
Currency translation reserve 5.6 (1.4)
Other reserves (2,067.7) (2,080.9)
---------- ------------
Equity attributable to equity holders
of the parent 2,402.6 1,972.0
Non-controlling interest 2.1 5.9
Total equity 2,404.7 1,977.9
---------- ------------
Alison Brittain Nicholas Cadbury
Chief Executive Finance Director
25 April 2016
Consolidated cash flow statement
Year ended 3 March 2016
Year to Year to
3 March 26 February
2016 2015
Notes GBPm GBPm
-------------------------------------------- ----- -------- ------------
Profit for the year 387.3 366.1
Adjustments for:
Taxation charged on total operations 6 100.4 97.7
Net finance cost 40.4 37.1
Total income from joint ventures (3.3) (2.6)
Total income from associate (0.9) (0.8)
Loss on disposal of property, plant
and equipment and property reversions 5 20.9 3.3
Depreciation and amortisation 197.6 168.4
Impairment of property, plant and
equipment 5 5.4 (3.4)
Share-based payments 17.3 13.5
Other non-cash items 5.6 7.9
-------- ------------
Cash generated from operations before
working capital changes 770.7 687.2
Increase in inventories (7.6) (6.6)
Increase in trade and other receivables (15.2) (7.4)
Increase in trade and other payables 34.3 41.0
-------- ------------
Cash generated from operations 782.2 714.2
Payments against provisions (15.1) (12.3)
Pension payments (84.3) (81.4)
Interest paid (25.6) (18.6)
Interest received 0.6 0.3
Corporation taxes paid (85.1) (82.8)
-------- ------------
Net cash flows from operating activities 572.7 519.4
Cash flows from investing activities
Purchase of property, plant and equipment 4 (680.3) (518.5)
Purchase of intangible assets 4 (35.4) (27.3)
Costs from disposal of property, plant
and equipment (0.2) (0.1)
Business combinations, net of cash
acquired (9.2) (19.5)
Capital contributions and loans to
joint ventures (3.0) (0.6)
Dividends from associate 0.8 0.8
-------- ------------
Net cash flows from investing activities (727.3) (565.2)
Cash flows from financing activities
Proceeds from issue of share capital 3.6 3.2
Increase in short-term borrowings 9 20.8 71.2
Proceeds from long-term borrowings 9 445.2 -
(Repayments of)/ increases in long-term
borrowings 9 (101.9) 63.9
Renegotiation costs of long-term borrowings 9 (3.6) (0.4)
Dividends paid 8 (155.1) (130.6)
-------- ------------
Net cash flows from financing activities 209.0 7.3
Net increase/ (decrease) in cash and
cash equivalents 9 54.4 (38.5)
Opening cash and cash equivalents 9 2.1 41.4
Foreign exchange differences 9 0.6 (0.8)
-------- ------------
Closing cash and cash equivalents
shown within current assets on the
balance sheet 9 57.1 2.1
-------- ------------
Notes to the accounts
1. Basis of accounting and preparation
The consolidated financial statements and preliminary
announcement of Whitbread PLC for the year ended 3 March 2016 were
authorised for issue by the Board of Directors on 25 April
2016.
The financial year represents the 53 weeks to 3 March 2016
(prior financial year: 52 weeks to 26 February 2015).
The financial information included in this preliminary statement
of results does not constitute statutory accounts within the
meaning of Section 435 of the Companies Act 2006 (the "Act"). The
financial information for the year ended 3 March 2016 has been
extracted from the statutory accounts on which an unqualified audit
opinion has been issued. Statutory accounts for the year ended 3
March 2016 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 02:01 ET (06:01 GMT)
The statutory accounts for the year ended 26 February 2015, have
been delivered to the Registrar of Companies, and the Auditors of
the Company made a report thereon under Chapter 3 of part 16 of the
Act. That report was unqualified and did not contain a statement
under sections 498 (2) or (3) of the Act.
The consolidated financial statements of Whitbread PLC, and all
its subsidiaries, have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted for
use in the European Union and as applied in accordance with the
provisions of the Companies Act 2006.
2. Basis of consolidation
The consolidated financial statements incorporate the accounts
of Whitbread PLC, and all its subsidiaries, together with the
Group's share of the net assets and results of joint ventures and
associate incorporated using the equity method of accounting. These
are adjusted, where appropriate, to conform to Group accounting
policies. The financial statements of significant trading
subsidiaries are prepared for the same reporting year as the parent
Company except for Yueda Costa (Shanghai) Food & Beverage
Management Company Limited which has a year-end of 31 December as
per Chinese legislation.
A subsidiary is an entity controlled by the Group. Control is
the power to direct the relevant activities of the subsidiary which
significantly affect the subsidiary's return, so as to have rights
to the variable return from its activities.
Apart from the acquisition of Whitbread Group PLC by Whitbread
PLC in 2000/01, which was accounted for using merger accounting,
acquisitions by the Group are accounted for under the acquisition
method and any goodwill arising is capitalised as an intangible
asset. The results of subsidiaries acquired or disposed of during
the year are included in the consolidated financial statements
from, or up to, the date that control passes respectively. All
intra-Group transactions, balances, income and expenses are
eliminated on consolidation. Unrealised losses are also eliminated,
unless the transaction provides evidence of an impairment of the
asset transferred.
3. Accounting policies
The accounting policies adopted in the preparation of these
consolidated financial statements are consistent with those
followed in the preparation of the consolidated financial
statements for the year ended 26 February 2015 except for the
adoption of new standards and interpretations applicable as of 27
February 2015.
The Group has adopted the following standards and
interpretations which have been assessed as having no financial
impact or disclosure requirements at this time:
-- The IASB's annual improvement process, 2010-2012;
-- The IASB's annual improvement process, 2011-2013;
-- IFRIC Interpretation 21 Levies (IFRIC 21); and
-- IAS 19 Defined Benefit Plans: Employee Contributions - Amendment to IAS 19.
Non underlying performance measures
To monitor the financial performance of the Group, certain items
are excluded from the profit measure. This measure is called
"underlying" and represents the business performance excluding
items that the directors consider could distort the understanding
of the performance or the comparability between periods. The face
of the income statement presents underlying profit before tax and
reconciles this to profit before tax as required to be presented
under the applicable accounting standards.
Underlying earnings per share is calculated having adjusted
profit after tax on the same basis. The term underlying profit is
not defined under IFRSs and may not be comparable with similarly
titled profit measures reported by other companies. It is not
intended to be a substitute for, or superior to, statutory
measurements of profit. The adjustments made to reported profit in
the consolidated income statement, in order to present an
underlying performance measure, include:
Exceptional items
The Group includes in non underlying performance measures those
items which are exceptional by virtue of their size or incidence so
as to allow a better understanding of the underlying trading
performance of the Group. The Group includes within exceptional
items the profit or loss on disposal of property, plant and
equipment, property reversions and other onerous leases, profit or
loss on the sale of a business, impairment and exceptional interest
and tax;
IAS 19 income statement finance charge/credit for defined
benefit pension schemes
Underlying profit excludes the finance cost/revenue element of
IAS 19 as this does not relate to the Group's ongoing activities as
the schemes are closed to future accrual;
Amortisation charge on acquired intangible assets
Underlying profit excludes the amortisation charge on acquired
intangible assets as this relates to transactions outside of the
underlying business; and
Taxation
The tax impact of the items above and the impact of tax rate
changes are also excluded in arriving at underlying earnings.
4. Segment information
For management purposes, the Group is organised into two
strategic business units (Hotels & Restaurants and Costa) based
upon their different products and services:
-- Hotels & Restaurants provide services in relation to accommodation and food; and
-- Costa generates income from the operation of its branded,
owned and franchised coffee outlets.
The UK and International Hotels & Restaurants segments have
been aggregated on the grounds that the International segment is
immaterial.
Management monitors the operating results of its strategic
business units separately for the purpose of making decisions about
allocating resources and assessing performance. Segment performance
is measured based on underlying operating profit. Included within
the unallocated and elimination columns in the tables below are the
costs of running the public company. The unallocated assets and
liabilities are cash and debt balances (held and controlled by the
central treasury function), taxation, pensions, certain property,
plant and equipment, centrally held provisions and central working
capital balances.
Inter-segment revenue is from Costa to the Hotels &
Restaurants segment and is eliminated on consolidation.
Transactions are entered into on an arm's length basis in a manner
similar to transactions with third parties.
The following tables present revenue and profit information and
certain asset and liability information regarding business
operating segments for the years ended 3 March 2016 and 26 February
2015.
Unallocated
Hotels and Total
&
Restaurants Costa elimination operations
Year to 3 March 2016 GBPm GBPm GBPm GBPm
--------------------------------------------- ----------- ------- ----------- ----------
Revenue
Underlying revenue from external
customers 1,822.0 1,099.8 - 2,921.8
Inter-segment revenue - 3.4 (3.4) -
Total revenue 1,822.0 1,103.2 (3.4) 2,921.8
Underlying operating profit 446.9 153.5 (31.6) 568.8
Underlying interest - - (22.5) (22.5)
----------- ------- ----------- ----------
Underlying profit before tax 446.9 153.5 (54.1) 546.3
Exceptional items and non underlying
adjustments (Note 5):
Amortisation of acquired intangibles - (4.3) - (4.3)
IAS 19 income statement charge
for pension finance cost - - (17.2) (17.2)
Net loss on disposal of property,
plant and equipment and property
reversions (0.4) (5.5) (15.0) (20.9)
Intangible assets accelerated amortisation (7.2) (0.9) (2.0) (10.1)
Impairment (1.7) (6.0) - (7.7)
Impairment reversal 2.0 0.3 - 2.3
Exceptional interest - - (0.7) (0.7)
----------- ------- ----------- ----------
Profit before tax 439.6 137.1 (89.0) 487.7
Tax expense (Note 6) (100.4)
----------
Profit for the year 387.3
----------
Assets and liabilities
Segment assets 3,842.2 444.4 - 4,286.6
Unallocated assets - - 118.7 118.7
----------- ------- ----------- ----------
Total assets 3,842.2 444.4 118.7 4,405.3
----------- ------- ----------- ----------
Segment liabilities (366.4) (136.8) - (503.2)
Unallocated liabilities - - (1,497.4) (1,497.4)
----------- ------- ----------- ----------
Total liabilities (366.4) (136.8) (1,497.4) (2,000.6)
----------- ------- ----------- ----------
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 02:01 ET (06:01 GMT)
Net assets 3,475.8 307.6 (1,378.7) 2,404.7
----------- ------- ----------- ----------
Other segment information
Share of profit from joint ventures 3.3 - - 3.3
Share of profit from associate 0.9 - - 0.9
Investment in joint ventures and
associate 36.3 3.2 - 39.5
Total property rent 123.4 111.2 0.1 234.7
Capital expenditure:
Property, plant and equipment -
cash basis 581.0 99.3 - 680.3
Property, plant and equipment -
accruals basis 604.6 102.6 - 707.2
Intangible assets 32.2 3.2 - 35.4
Depreciation - underlying (112.0) (59.4) - (171.4)
Amortisation - underlying (9.0) (2.7) (0.1) (11.8)
Unallocated
Hotels and Total
&
Restaurants Costa elimination operations
Year to 26 February 2015 GBPm GBPm GBPm GBPm
--------------------------------------- ----------- ------- ----------- ----------
Revenue
Underlying revenue from external
customers 1,659.2 948.9 - 2,608.1
Inter-segment revenue - 3.0 (3.0) -
Total revenue 1,659.2 951.9 (3.0) 2,608.1
Underlying operating profit 401.4 132.5 (29.5) 504.4
Underlying interest - - (16.3) (16.3)
----------- ------- ----------- ----------
Underlying profit before tax 401.4 132.5 (45.8) 488.1
Exceptional items and non underlying
adjustments (Note 5):
Amortisation of acquired intangibles - (2.5) - (2.5)
IAS 19 income statement charge
for pension finance cost - - (21.6) (21.6)
Net loss on disposal of property,
plant and equipment and property
reversions (0.5) (2.8) - (3.3)
Impairment (2.9) (2.3) - (5.2)
Impairment reversal 8.1 0.5 - 8.6
Share of impairment in fixed assets
in joint venture (1.1) - - (1.1)
Exceptional interest - - 0.8 0.8
----------- ------- ----------- ----------
Profit before tax 405.0 125.4 (66.6) 463.8
Tax expense (Note 6) (97.7)
----------
Profit for the year 366.1
----------
Assets and liabilities
Segment assets 3,293.0 395.8 - 3,688.8
Unallocated assets - - 45.0 45.0
----------- ------- ----------- ----------
Total assets 3,293.0 395.8 45.0 3,733.8
----------- ------- ----------- ----------
Segment liabilities (308.7) (109.7) - (418.4)
Unallocated liabilities - - (1,337.5) (1,337.5)
----------- ------- ----------- ----------
Total liabilities (308.7) (109.7) (1,337.5) (1,755.9)
----------- ------- ----------- ----------
Net assets 2,984.3 286.1 (1,292.5) 1,977.9
----------- ------- ----------- ----------
Other segment information
Share of profit from joint ventures 2.6 - - 2.6
Share of profit from associate 0.8 - - 0.8
Investment in joint ventures and
associate 29.3 3.0 - 32.3
Total property rent 107.5 101.0 0.2 208.7
Capital expenditure:
Property, plant and equipment -
cash basis 451.1 67.4 - 518.5
Property, plant and equipment -
accruals basis 449.5 71.2 - 520.7
Intangible assets 22.7 4.4 0.2 27.3
Depreciation - underlying (102.3) (53.4) - (155.7)
Amortisation - underlying (7.5) (2.0) (0.7) (10.2)
Revenues from external customers 2015/16 2014/15
are split geographically as follows: GBPm GBPm
--------------------------------------- -------- --------
United Kingdom* 2,822.4 2,519.8
Non United Kingdom 99.4 88.3
-------- --------
2,921.8 2,608.1
* United Kingdom revenue is revenue where the source of the
supply is the United Kingdom. This includes Costa franchise income
invoiced from the UK.
Non-current assets** are split 2016 2015
geographically as follows: GBPm GBPm
-------------------------------- -------- --------
United Kingdom 3,973.1 3,477.1
Non United Kingdom 163.2 89.0
-------- --------
4,136.3 3,566.1
** Non-current assets exclude derivative financial
instruments
5. Exceptional items and non underlying adjustments
2015/16 2014/15
GBPm GBPm
------------------------------------------------- -------- --------
Exceptional items before tax and interest:
Operating costs
Net loss on disposal of property,
plant and equipment and property reversions
(a) (20.9) (3.3)
Intangible assets accelerated amortisation (10.1) -
(b)
Impairment of property, plant and
equipment (7.7) (5.2)
Impairment reversal 2.3 8.6
Exceptional operating costs (36.4) 0.1
Share of impairment in fixed assets
in joint venture (c) - (1.1)
Exceptional items before interest
and tax (36.4) (1.0)
Exceptional interest:
Interest on exceptional tax (d) - 1.6
Unwinding of discount rate on provisions
(e) (0.7) (0.8)
-------- --------
(0.7) 0.8
Exceptional items before tax (37.1) (0.2)
-------- --------
Non underlying adjustments made to
underlying profit before tax to arrive
at reported profit before tax:
Amortisation of acquired intangibles (4.3) (2.5)
IAS 19 income statement charge for
pension finance cost (17.2) (21.6)
-------- --------
(21.5) (24.1)
-------- --------
Items included in reported profit before
tax, but excluded in arriving at underlying
profit before tax (58.6) (24.3)
-------- --------
2015/16 2014/15
GBPm GBPm
---------------------------------------- -------- --------
Tax adjustments included in reported
profit after tax, but excluded from
underlying profit after tax:
Tax on exceptional items (1.5) 0.4
Exceptional tax items - tax base cost (0.1) 2.0
Deferred tax relating to UK tax rate 13.0 -
change (f)
Tax on non underlying adjustments 4.3 4.8
15.7 7.2
-------- --------
(a) The Group is currently negotiating terms on a number of
properties with onerous leases, which reverted to the Group in
prior years under privity of contracts, and as a consequence has
increased the provision by GBP14.7m to reflect those expected
terms. The balance relates to other onerous leases in France of
GBP1.4m and Poland of GBP0.8m and minor disposals in the year of
GBP4.0m.
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(b) Following a review of IT software and technology assets
during the year, additional amortisation of GBP10.1m has been
recognised in the income statement in respect of systems for which
there is now no future economic benefit.
(c) Share of impairment of fixed assets in the Gulf joint
venture
(d) Interest calculated and settled on closure of prior tax
periods
(e) The interest arising from the unwinding of the discount rate
within provisions is included in exceptional interest, reflecting
the exceptional nature of the provisions created.
(f) Impact of the reduction in the main rate of UK corporation
tax to 19% from 1 April 2017 and to 18% from 1 April 2020.
6. Taxation
2015/16 2014/15
Consolidated income statement GBPm GBPm
----------------------------------------- ---------- ----------
Current tax:
Current tax expense 116.1 110.3
Adjustments in respect of previous
periods (8.0) (6.2)
---------- ----------
108.1 104.1
Deferred tax:
Origination and reversal of temporary
differences (2.9) (6.3)
Adjustments in respect of previous
periods 8.2 (0.1)
Change in UK tax rate to 18% (13.0) -
(7.7) (6.4)
---------- ----------
Tax reported in the consolidated income
statement 100.4 97.7
---------- ----------
Consolidated statement of comprehensive 2015/16 2014/15
income GBPm GBPm
------------------------------------------ -------- --------
Current tax:
Cash flow hedges 0.9 -
Pensions (14.7) (15.4)
Deferred tax:
Cash flow hedges 0.4 (0.6)
Pensions 55.4 (0.8)
Change in UK tax rate to 18% - pensions 0.7 -
Change in UK tax rate to 18% - cash
flow hedges 0.1 -
-------- --------
Tax reported in other comprehensive
income 42.8 (16.8)
-------- --------
A reconciliation of the tax charge applicable to underlying
profit before tax and profit before tax at the statutory tax rate,
to the actual tax charge at the Group's effective tax rate, for the
years ended 3 March 2016 and 26 February 2015 respectively is as
follows:
2015/16 2014/15
---------------------------------
Tax on Tax on
underlying Tax on underlying Tax
profit profit profit on profit
GBPm GBPm GBPm GBPm
--------------------------------- ------------ -------- ------------ -----------
Profit before tax as reported
in the consolidated income
statement 546.3 487.7 488.1 463.8
Tax at current UK tax rate
of 20.08% (2014/15: 21.17%) 109.7 98.0 103.3 98.2
Effect of different tax rates
and unrecognised losses in
overseas companies 3.5 5.1 4.6 5.2
Effect of joint ventures and
associate (0.9) (0.9) (1.0) (0.8)
Expenditure not allowable 4.0 11.0 2.0 1.4
Adjustments to current tax
expense in respect of previous
years (8.0) (8.0) (4.5) (6.2)
Adjustments to deferred tax
expense in respect of previous
years 7.8 8.2 0.5 (0.1)
Impact of change of tax rate
on deferred tax balance - (13.0) - -
------------ -------- ------------ -----------
Tax expense reported in the
consolidated income statement 116.1 100.4 104.9 97.7
------------ -------- ------------ -----------
Current tax liability
The corporation tax balance is a liability of GBP41.2m (2015:
liability of GBP35.4m).
Deferred tax
Deferred tax relates to the following:
Consolidated Consolidated
balance sheet income statement
---------------------------- ---------------------
2016 2015 2015/16 2014/15
GBPm GBPm GBPm GBPm
-------------------------------- ------------- ------------- ---------- ---------
Deferred tax liabilities
Accelerated capital allowances 48.7 52.0 (3.3) (0.3)
Rolled over gains and property
revaluations 73.3 82.6 (8.0) (3.3)
------------- -------------
Gross deferred tax liabilities 122.0 134.6
Deferred tax assets
Pensions (28.7) (82.6) (2.2) (3.1)
Other 1.4 (8.3) 5.8 0.3
------------- -------------
Gross deferred tax assets (27.3) (90.9)
---------- ---------
Deferred tax expense (7.7) (6.4)
------------- ------------- ---------- ---------
Net deferred tax liability 94.7 43.7
------------- -------------
Total deferred tax liabilities relating to disposals during the
year was GBPnil (2015: GBPnil).
The Group has incurred overseas tax losses which, subject to any
local restrictions, can be carried forward and offset against
future taxable profits in the companies in which they arose. The
Group carries out an annual assessment of the recoverability of
these losses and does not think it appropriate at this stage to
recognise any deferred tax asset. If the Group were to recognise
these deferred tax assets in their entirety, profits would increase
by GBP10.7m (2015: GBP10.0m), of which, the share attributable to
the parent shareholders is GBP8.9m (2015: GBP7.8m).
At 3 March 2016, there was no recognised deferred tax liability
(2015: GBPnil) for taxes that would be payable on any unremitted
earnings, as all such amounts are permanently reinvested or, where
they are not, there are no corporation tax consequences of such
companies paying dividends to parent companies.
Tax relief on total interest capitalised amounts to GBP2.0m
(2015: GBP0.8m).
Factors affecting the tax charge for future years
The Finance (No 2) Act 2015 reduced the main rate of UK
corporation tax to 19% from 1 April 2017 and to 18% from 1 April
2020. The effect of the new rate is a reduction of the deferred tax
liability by a net GBP13.5m, comprising a credit of GBP13.0m to the
income statement, a charge of GBP0.8m to the consolidated statement
of comprehensive income, and a reserves movement of GBP1.3m. In his
Budget of 16 March 2016, the Chancellor of the Exchequer announced
an additional 1% reduction in the main rate of UK corporation tax
to 17% with effect from 1 April 2020. This change had not been
substantively enacted at the balance sheet date and consequently is
not included in these financial statements. The effect of the
proposed reduction would be to reduce the net deferred tax
liability by GBP6.9m. The rate changes will also impact the amount
of the future cash tax payments to be made by the Group.
7. Earnings per share
The basic earnings per share figures (EPS) are calculated by
dividing the net profit for the year attributable to ordinary
shareholders, therefore before non-controlling interests, by the
weighted average number of ordinary shares in issue during the year
after deducting treasury shares and shares held by an independently
managed employee share ownership trust (ESOT).
The diluted earnings per share figures allow for the dilutive
effect of the conversion into ordinary shares of the weighted
average number of options outstanding during the year. Where the
average share price for the year is lower than the option price the
options become anti-dilutive and are excluded from the calculation.
The number of such options was nil (2015: nil).
The numbers of shares used for the earnings per share
calculations are as follows:
2015/16 2014/15
million million
------------------------------------------- --------- ---------
Basic weighted average number of ordinary
shares 181.4 180.7
Effect of dilution - share options 1.4 1.8
--------- ---------
Diluted weighted average number of
ordinary shares 182.8 182.5
--------- ---------
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April 26, 2016 02:01 ET (06:01 GMT)
The total number of shares in issue at the year-end, as used in
the calculation of the basic weighted average number of ordinary
shares, was 195.2m, less 12.6m treasury shares held by Whitbread
PLC and 0.9m held by the ESOT (2015: 195.0m, less 13.3m treasury
shares held by Whitbread PLC and 0.6m held by the ESOT).
The profits used for the earnings per share calculations are as
follows:
2015/16 2014/15
GBPm GBPm
Profit for the year attributable to
parent shareholders 391.2 370.1
Exceptional items and non underlying
adjustments - gross 58.6 24.3
Exceptional items and non underlying
adjustments - taxation (15.7) (7.2)
Exceptional items and non underlying
adjustments - non-controlling interest (1.2) (1.1)
-------- --------
Underlying profit for the year attributable
to parent shareholders 432.9 386.1
2015/16 2014/15
pence pence
Basic on profit for the year 215.66 204.81
Exceptional items and non underlying
adjustments - gross 32.30 13.45
Exceptional items and non underlying
adjustments - taxation (8.65) (3.98)
Exceptional items and non underlying
adjustments - non-controlling interest (0.66) (0.61)
-------- --------
Basic on underlying profit for the
year 238.65 213.67
Diluted on profit for the year 214.00 202.79
Diluted on underlying profit for the
year 236.82 211.56
8. Dividends paid and proposed
2015/16 2014/15
Pence Pence
per per
share GBPm share GBPm
------------------------------------------ ------ ----- ------ -----
Final dividend relating to the
prior year 56.95 103.4 47.00 85.1
Paid in the year 103.4 85.1
Interim dividend for the current
year 28.50 51.7 25.20 45.5
Paid in the year 51.7 45.5
Total equity dividends paid in
the year 155.1 130.6
Dividends on other shares:
B share dividend 0.80 - 0.70 -
C share dividend 0.80 - 0.70 -
----- -----
- -
Total dividends paid 155.1 130.6
Proposed for approval at Annual
General Meeting:
Final equity dividend for the current
year 61.85 112.4 56.95 103.1
9. Movements in cash and net debt
Fair
value Amortisation
Year ended 3 March 26 February Cost Cash Foreign adjustments of premiums 3 March
2016 2015 of borrowings flow exchange to loans and discounts 2016
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------- ----------- -------------- ------- --------- ------------ --------------- -----------
Cash at bank and
in hand 1.9 57.0
Short-term deposits 0.2 0.1
Overdrafts - -
----------- -----------
Cash and cash equivalents 2.1 - 54.4 0.6 - - 57.1
Short-term bank
borrowings (71.2) - (20.8) - - - (92.0)
Loan capital under
one year (1.9) (2.0)
Loan capital over
one year (512.2) (872.9)
----------- -----------
Total loan capital (514.1) 3.6 (343.3) (14.1) (5.1) (1.9) (874.9)
----------- -------------- ------- --------- ------------ --------------- -----------
Net debt (583.2) 3.6 (309.7) (13.5) (5.1) (1.9) (909.8)
----------- -------------- ------- --------- ------------ --------------- -----------
Fair
value Amortisation
Year ended 26 February 27 February Cost Cash Foreign adjustments of premiums 26 February
2015 2014 of borrowings flow exchange to loans and discounts 2015
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------- ----------- -------------- ------- --------- ------------ --------------- -----------
Cash at bank and
in hand 41.3 1.9
Short-term deposits 0.1 0.2
Overdrafts - -
----------- -----------
Cash and cash equivalents 41.4 - (38.5) (0.8) - - 2.1
Short-term bank
borrowings - - (71.2) - - - (71.2)
Loan capital under
one year - (1.9)
Loan capital over
one year (433.0) (512.2)
----------- -----------
Total loan capital (433.0) 0.4 (63.9) (12.3) (3.9) (1.4) (514.1)
----------- -------------- ------- --------- ------------ --------------- -----------
Net debt (391.6) 0.4 (173.6) (13.1) (3.9) (1.4) (583.2)
----------- -------------- ------- --------- ------------ --------------- -----------
Net debt includes US$ denominated loan notes of US$325.0m (2015:
US$325.0m) retranslated to GBP233.8m (2015: GBP214.6m). These notes
have been hedged using cross-currency swaps. At maturity, GBP208.3m
(2015: GBP208.3m) will be repaid taking into account the
cross-currency swaps. If the impact of these hedges is taken into
account, reported net debt would be GBP884.3m (2015:
GBP576.9m).
10. Events after the balance sheet date
A final dividend of 61.85p per share (2015: 56.95p) amounting to
a dividend of GBP112.4m (2015: GBP103.1m) was recommended by the
directors at their meeting on 25 April 2016. A dividend
reinvestment plan (DRIP) alternative will be offered. These
financial statements do not reflect this dividend payable.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKPDQDBKBDQB
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April 26, 2016 02:01 ET (06:01 GMT)
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