max temp: 16°C

min temp: 15°C

ESTD 1874 Search

Leisure/Retail: Growth at Costa and Premier Inn drives 16.5% surge in profits at Whitbread

08:37 29 April 2014

Profits at coffee chain Costa have increased by nearly 22% over the past year.

Profits at coffee chain Costa have increased by nearly 22% over the past year.


Britain’s burgeoning coffee shop culture has helped the Costa chain grow annual profits by more than a fifth as sales and store numbers surged.


The chain sold 400 million drinks in the year to February 27 as revenues rose by 21.9% to £807.7million, during a period when 177 new outlets were opened to take the total number in the UK to 1,755.

Costa’s domestic like-for-like sales were up 5.7% and underlying operating profits grew 21.9% to £109.8m while worldwide sales of £1.2billion were on track to reach a target of £2bn by 2018, owner Whitbread said.

Finance director Nicholas Cadbury said Costa was “continuing to benefit from the socio-economic changes favouring coffee shops”.

The performance helped Whitbread to a better-than-expected 16.5% surge in underlying pre-tax profits to £411.8m, on revenues of £2.29bn.

It was also helped by the performance over the final quarter of its UK hotels and restaurants Premier Inn, Brewers Fayre and Beefeater.

Successful Christmas and New Year campaigns combined with better January and February weather helped them achieve like-for-like sales growth of 7.3% in the final three months of the financial year, compared with 2.7% in the previous quarters.

Meanwhile, online hotel reservations as a proportion of total bookings grew to 85%. Plans to expand the number of rooms to 75,000 by 2018 include more than doubling those in London to 20,000.

Premier Inn revenues for the year were £967.9m, with like-for-like sales climbing 5%. Restaurants turnover climbed to £526.1m, with a like-for-like rise of 1.6%, though this was lower than the year before.

Whitbread said it was increasing its full-year dividend by 19.9%. The group, which employs 43,000 people, said it added 3,000 new net jobs in the year.

Chief executive Andy Harrison said: “We had a strong finish to last year, with all our brands performing well, boosted by good Christmas and New Year campaigns and helpful weather comparatives.

“The first two months of the new financial year have started positively, with good trading again helped by relatively soft comparatives which will become tougher as we move into the second half of this year.”



Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

New report on prosperity in seaside towns

New research has highlighted the importance of entrepreneurs in helping to revive seaside towns that have fallen into decline and unlock further potential in those already prospering.

Dan Poulter with employees at B&Q

A Suffolk MP has said he will do what he can to try and prevent a B&Q store closing down with the potential loss of around 100 jobs.

Helen Drage,  co-founder of Drage & Tozer Opticians.

Sudbury opticians firm Drage and Tozer, founded in 1995 by Helen Drage and Sandra Tozer, has celebrated 20 years in business by expanding into new premises.

Val Carrol, director of healthcare at Beckett Financial Services, receives the company’s Commendation at the Investment Life & Pensions Moneyfacts awards from comedian Tim Vine.

Bury St Edmunds-based Beckett Financial Services has been recognised by a national financial services publication for delivering outstanding levels of customer satisfaction to its healthcare clients.

Meadows Montessori School pupils Spencer, Luke and Ben, aka the Flower Pot Men, with The Apprentice 2014 winner Mark Wright who presented their trophy for winning the Best Community Engagement category of the Fiver Challenge Awards , supported by Virgin Money.

Pupils from the Meadows Montessori school in Ipswich have been named among the winners in the Fiver Challenge, run by the Young Enterprise programme.

From left, Michael Francis, store manager, Colchester, Robert Smith, dealer principle, Colchester and Norwich, and  Emmanuel Greffier, store manager, Norwich with the Bang & Olufsen UK Partner of the Year trophy.

The team at the Bang & Olufsen store in Colchester is celebrating after beating off competition from 60 other dealerships to be named as the audio equipment firm’s UK Partner of the Year.

Kelly-Anne Byres of Poppy Nursing and Care Services.
Picture: Stephen Waller  www.stephenwaller.com

Five businesses and organisations from Suffolk and north Essex have been named among the finalists in the 2015 East of England Business Champions awards.

The Nestle Purina site in Sudbury

A Sudbury pet food factory is under increasing pressure to tackle foul odours as it is revealed an environmental regulator recorded 40 stench complaints since last month.

Ipswich Building Society general sales manager Jo Leah and her friend Libby Smith, also from Ipswich,preparing for their charity challenge involving a 100km trip down the Zambezi River.

A executive from Ipswich Building Society will today be starting a challenge to travel 100km along Africa’s Zambezi River in aid of a local charity.


Fairline testing facility at Ipswich.

The new owner of Fairline Boats has expressed confidence in the business, despite laying off more than 100 of its production staff.

Most read

Most commented

Topic pages