The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
extracts of the article...
While UK consumers grapple with the rising cost of living, the one thing we’re betting they won’t want to give up this year is their summer holiday, even if it means settling for a cheap staycation.
As the UK’s largest hospitality business with over 90,000 rooms, and a rapidly expanding presence in Germany where it already has 14,000 rooms, Premier Inn owner Whitbread (WTB) is in a prime position to benefit from the desire to get away.....
... the firm swung back to a profit of £58 million in the year to 3 March as sales almost trebled. That impressive recovery in revenues continued in March and April with UK accommodation sales now around 30% above pre-Covid levels thanks to occupancy rates of over 80% .....the board agreed to resume the payment of dividends from July,.....2022 could turn out to
be a bumper summer for UK hospitality, which means now is a great time to buy shares in Whitbread as its services could
be in strong demand..... BUY
Deutsche Bank have retained their buy rating and left the SP guidance unchanged at 3800p - their rating is unchanged since May 2021.
Totally agree tried to book up a trip for July , quoted £150 p night all hotels were either full or only had a few rooms left . Will show in next year accounts , topped up my holding today .
GLA
Greggs update saying their travel locations have seen large pick up in last few weeks. I think business travel back on agenda should be good for WTB.
Yes. its all about the macro at the moment with negative sentiment pushing most stocks oversold.
With good news WTB should start to move towards most broker targets of 4000p.
It should be noted that while most stock price targets have recently fallen, WTB's target price has actually increased with brokers.
https://www.lse.co.uk/ShareBrokerTips.asp?shareprice=WTB&share=Whitbread
Agreed @MRPoisson. Nobody wants to look at the next ten years. Mr Market thinks he can make a quick buck elsewhere. I've sold some defence stocks to top this up.
The market defies all logic at times. Cracking update issued with the resumption of dividends and we're now starring at lows not seen since the pandemic...........
The response to the test of 2436 looks very encouraging, hope all the stop losses and weak hands were cleansed , now ready to return to 3700 . Big old beast to move this so dont expect fireworks .
Agree with Chilting , seeing the cost per room starting to increase as well .
Yes, I think investors are onto a winner here - an excellent long term hold, the SP should recover to pre-Covid over the next 12 months or so.
The product is solid, dependable and above all convenient.
Adding Premier Plus to the offering gives the opportunity for more revenue and should attract a broader range of customers, especially in the business sector - its good to see stays by business customers increasing again.
Personally, I use Premier Inn when I am travelling around the country and its good to see standards now improving to pre-Covid levels, although its obvious that attracting proficient staff is still a problem.
Leisure demand looks set to be the driver this Spring and Summer with UK tourism enjoying a buoyant season.
https://www.thetimes.co.uk/article/premier-inn-brings-back-dividend-early-as-trade-improves-rknk0hvsd
Whitbread has resumed dividend payments a year earlier than expected with a £70 million payout to shareholders to reflect encouraging trading and confidence in the outlook as the Premier Inn operator returned to profit.
The 34.7p final dividend came as the Premier Inn operator raised its forecast for new room openings after identifying “an acceleration in the exit of independent operators from the UK market”.
The FTSE 100 leisure group said that it expected to take further market share by adding between 1,500 and 2,000 rooms in the UK in the current year, and 2,000 to 2,500 rooms in Germany.
Alison Brittain, 57, the Whitbread chief executive, said the company had recovered “exceptionally well” from last year, as its hotels traded well ahead of the market amid “high levels of leisure demand and improving business demand”.
Broker Recommendations for Whitbread (WTB) prior to todays results.....
Date Broker New Target
26-Apr-22 Morgan Stanley 3800.00
21-Apr-22 Barclays 4000.00
I was expecting after the stellar results, sp to be north of £30. Too many shorters in UK market.
Excellent! - well into recovery mode with the opposition falling by the wayside- resumption of dividend is very welcome news.
https://twitter.com/surprised_trade/status/1519569929816707072
Revenues 189% ahead of FY21, profit before tax +£58.2m,accommodation sales were 326.6% ahead, Resumption of dividend payments (34p)
Sustained outperformance in UK with strong current trading momentum; rapid estate growth in Germany; dividend restored
FY22 highlights
· Continued significant market outperformance in the UK, driven by the strength of our commercial and operational initiatives along with the inherent strengths of our brand, scale and direct distribution
· Premier Inn total accommodation sales growth was 14.8pp ahead of the midscale and economy market in FY22, and 17.3pp ahead in H2
· Strong recovery from last year - total UK accommodation sales were 198.0% ahead of FY21 with total UK food and beverage sales 170.2% ahead
· Versus FY20 (pre-COVID):
o As a result of our business being open to only essential business travel for the majority of the first quarter, UK total accommodation sales were 11.7% behind pre-COVID levels (and like-for-like 15.5% behind). However, from Q2 onwards, performance improved significantly, quickly returning to, and then exceeding pre-COVID levels
o In H2, total UK accommodation sales were 12.5% ahead (7.9% ahead on a 52-week basis) of pre-COVID levels, and like-for-like 7.5% ahead (3.2% ahead on a 52-week basis, despite the impact of the Omicron COVID variant in Q4
o Total UK food and beverage sales were 30.9% behind FY20 (32.7% behind on a 52-week basis), again due to lockdown closures, recovering in H2 to 9.7% behind (13.3% behind on a 52-week basis)
· Germany total open and committed pipeline now stands at 78 hotels, with 37 open hotels, compared to 6 open hotels at the start of the pandemic, with the rapid estate growth driving statutory revenue 206.1% ahead of FY21 and 198.3% ahead of FY20
· Resumption of dividend payments with the Board declaring a final dividend per share of 34.7p resulting in a total dividend payment of £70m, payable on 1 July 2022, reflecting both the Group's encouraging trading, and confidence in the outlook
Financial summary
· FY22 statutory revenues were 189.0% ahead of FY21 reflecting the strong recovery in sales post COVID restrictions, and the estate growth in the UK and Germany
· FY22 statutory profit before tax of £58.2m, compared to a loss of £1,007.4m in FY21. Adjusting items before tax in the year were a net credit of £74.0m, including £33.2m profit from property disposals, and £42.0m of net property impairment reversals (FY21: £109.2m charge)
· Both the FY22 statutory profit and the adjusted loss before tax of £15.8m benefitted from £126.5m of COVID related UK Government support schemes, a significant reduction from the prior year (FY21: £260.3m), and £44.3m of COVID related support schemes in Germany (FY21: £11.8m)
· The Group retains a strong balance sheet and liquidity position, as it targets a return to investment grade metrics, enabling on-going investment in our comprehensive growth strategy. Cash inflow before debt repayments was £80.3m in the second half and net cash at the end of the year was £140.5m.
From the premier inns we've used recently, as is always the case....with respect to goinglarge's post, it does seem you are invested in a host of stocks you are not happy with regarding their products or services, from M and S, ITV, WTB and many more... Unfortunate that your stock selection has turned out poorly for you....better luck going forward ....
As an update, I thought that I would report my experience to their customer feed back team. Not sure why I wasted my time as they are even more unhelpful. Still not sure what to do following my recent terrible experience. Either they are making so much money that they do not care or something is going horribly wrong with this company after sacking and losing so many staff. Gut feel is that I should sell my shares but there is something telling me that it may just be a one off bad experience and they are trying to discourage group bookings?
Totally opposite to my experience , just stayed in Tamworth group of 12 , no problems booking , hotel was excellent , clean tidy and food was the usual high standard . My pa booked the rooms online in a few minutes, it really is very straight forward .
I have been trying to do a group booking for business purposes and after 5 e-mails and 10 calls to the hotel I have given up and booked elsewhere. I am a shareholder and feel so disgusted with their service on this occasion that I am considering selling my shares. I have no idea how to interpret my experience. Either they are so short staffed that they are now losing bookings or they are making so much money that they can afford to turn down £800+? Has anyone else had recent issues or was I just unlucky on this occasion. I have fed back my concerns to their head office but have not received a reply. What is going on with this company?
Breaking that resistance, been a bit of tree shaking off the MMs, trying to go short for the last couple of months
Preliminary results due out before end of April. Also April for WTB historically is usually a good month.
Sell in May and go away?
Strong today for some reason
Good summary in my view surprised. I don't think most of the analysts are far away from my own opinion.
Germany should take off once this bloody war in the Ukraine is over.
More people will be using Premier Inn due to many still wanting to take holidays in this country and travelling the length of the country will increase the occupancy levels without doubt.
Good of you to take the time to post your negative take on a number of stocksyesterday Porche, always good to have a variety of takes...buying at lows is always best if we can find the bottom, however, it's a tough ask to call tops and bottoms. Many ways to invest in mkts and bottom feeding is one tactic and I would suggest as the current sp is close to where it was in Feb 21 with lockdowns etc and now we are on the verge of longer day, warmer weather and folk looking to get out, have breaks, attend events, meet friends and generally move on from the past two years..
Here's the views from some guys involved in mkts that have a very positive view on WTB ..
Share price forecast
The 19 analysts offering 12 month price targets for Whitbread plc have a median target of 3770 with a high estimate of 4000
https://markets.ft.com/data/equities/tearsheet/forecasts?s=wtb:lse