Whitbread's health and hotel sectors perform well

Whitbread has reported strong annual growth in its focused health and hotel businesses, since last year's large-scale restructuring of the business, disposing of its pubs and bars. In results released today, pre-tax profits for the year to 3 March 2001 rose 14 per cent to £292m, at the low end of expected results, with turnover falling from £2.95bn to £2.59bn, reflecting the heavy disposal programme. Health and fitness and hotels performed strongly. David Lloyd membership rose 23 per cent to 230,000, and like-for-like sales in the hotels division (including Marriott and Travel Inn) rose 9 per cent. Restaurants, however, reported less optimistic results, with a 2 per cent rise in like-for-like sales. The results appear to vindicate the company's decision to dispose of pubs and bars and focus on the fitness, hotel and restaurant sectors. Chair Sir John Banham is upbeat about the results: Future Whitbread has made a flying start with strong sales and profit growth and an improvement in overall margins, he commented. Future plans for the company include strengthening its Brewers Fayre and Brewsters pub restaurant brands with a £200m investment in opening 80 new sites over the next three years.