In an unplanned trading update Whitbread has confirmed that previously downgraded guidance remains unchanged. UK cost inflation is expected to reach 2-3%, and a maiden pre-tax profit in Germany of up to £5mn is expected.
Next year cost inflation is expected to increase to 7-8%, including an estimated £40-50mn impact from changes to business rates announced in the UK Autumn Budget. The group will look to deliver £60mn of cost savings to help limit the impact.
The shares were down 9.8% in afternoon trading.
Our view
HL view to follow.
WTB key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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