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Shares in Whitbread, owner of Premier Inn, rose after it said bookings are rising and pledged to return £2bn to investors by 2030.
The FTSE 100 hospitality giant, which also owns restaurant and pub chains Beefeater, Brewers Fayre and Bar+Block Steakhouse, said revenue was flat in the first half of the year at £1.57bn.
It also reported a 22 per cent drop in profits to £309m for the six months to the end of August.
But striking a more optimistic tone about the future, he said “a soft start to September” has been followed by “an improvement in recent weeks with a good rebound in bookings throughout October and November.”
Profits hit: Premier Inn owner Whitbread, which also owns Beefeater, Brewer’s Fayre and Bar+Block Steakhouse, said revenue was flat in the first half of the year at £1.57bn
Whitbread said it now aims to reduce costs by £60m this year, some £10m more than expected, and deliver further annual savings of £50m on average over the next five years.
As such, it expects profits in 2030 to be £300m higher than this year, generating more than £2bn to return to shareholders through dividends and buybacks. The shares rose 6.1 per cent, or 186 pence, to 3,258 pence.
A bigger-than-expected fall in inflation helped lift the broader London market: the FTSE 100 rose 1 percent, or 79.79 points, to 8,329.07 and the FTSE 250 gained 0.9 percent, or 185.06 points, to 20,979.5.
Homebuilders were among those benefiting as inflation falling to 1.7 percent – the lowest level in more than three years – fueled hopes of further interest rate cuts in the coming months.
Barratt Redrow added 4.7 per cent, or 22p, to 494p, Persimmon gained 3.5 per cent, or 58p, to 1,720p and
Stock Watch – Sanderson Design Group
Shares in Sanderson Design Group plunged after it posted a 76 per cent drop in profits.
The luxury furniture company said profits in the six months to the end of July amounted to just £1.5m, down from £6.2m a year earlier.
Revenue also fell, falling 11 per cent to £50.5m.
The London-based company also cut its dividend by a third to 0.5 per share.
Yesterday the shares fell 16.3 per cent, or 12.5p, to 64p.
Taylor Wimpey rose 3.5 per cent, or 5.55p, to 165.7p.
But insurers suffered after the Financial Conduct Authority launched an investigation into home and car cover paid for in monthly installments.
Direct Line fell 3.3 per cent, or 5.9 pence, to 175.6 pence and Admiral Group gave up 2.2 per cent, or 62 pence, to 2,714 pence.
Rolls-Royce shareholders have another reason to toast ‘Turbo’ chief executive Tufan Erginbilgic as shares rose another 3.6 per cent, or 19.4p, to a record 560p.
That took gains since he took over early last year to 500 per cent, a six-fold rise in the share price from 93.2p to 560p.
The engineering giant is valued at £47.6bn, up from £7.9bn at the start of his reign. Construction supplier Marshalls hailed a “resilient performance” in the face of “continually weak” demand.
Revenue in the third quarter was 3 percent lower than a year earlier.
But this was a “material improvement” over the 12 percent drop seen in the first half. Analysts at Peel Hunt maintained their buy stance on the company, saying they are “prepared for the bounce when it comes.” Shares in Marshalls rose 12.5 per cent, or 38.5p, to 347.5p.
Greetings card group Moonpig soared when it launched a £25m share buyback scheme and promised a £10m annual dividend. The shares soared 12.5 per cent, or 28.5p, to 257p.
MoneySuperMarket owner Mony saw a 2 per cent decline in revenue to £112.9 million in the third quarter as its travel and home services divisions struggled. The shares fell 7.8 per cent, or 16.6p, to 195.4p.
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