Pub restaurant revamp pays off for Whitbread

Whitbread has announced plans to build its first new Beefeater pub/restaurant for six years later this year after a programme to revamp its existing sites.

Following what it described as a successful investment programme in the Beefeater brand like-for-like outlet sales rose 2.7 per cent in the second half.

In its Brewer's Fayre sites a new concept of "informal contemporary food in a stylish environment" had been rolled out across 20 units last year and had delivered "strong results", according to the group. A further 100 conversions to the concept are likely in the coming twelve months, it added.

Announcing its results for the year to March 1 2007 this morning, Whitbread said investment in its restaurant estate and "redevelopment of the guest proposition" was already translating into sales growth, with an average sales uplift of circa 25 per cent flowing through from the converted restaurants.

Revenue from continuing operations, including the pubs sold to Mitchells & Butlers last year, totalled £1,304.5m, up 10.3 per cent, with pre-tax profits up 24.5 per cent to £213m. A full year dividend of 30.25p is to be paid, up 10.8 per cent.

The group said its restaurant and hotel properties had been valued on a portfolio basis at £3.6bn.

It noted that while it had received unsolicited approaches for its David Lloyd Leisure operation - which had been performing well following new management actions - the group had yet to make a decision on the division's future.

Whitbread's shares were up 27p at 1,929p.