Whitbread to cut capex by £100m next year

Whitbread is to slash its capital expenditure budget by more than £100m next year as the recession tightens its grip.

The group, which operates the Beefeater and Brewers Fayre pub restaurant brands, said it had been reviewing its future development plans "as the macro economic situation has become increasingly challenging.

"We believe that while this environment remains we should take a more prudent approach to organic expansion.

"Although we remain committed to growing the business, we have decided to limit our capital expenditure next year to around £200m compared to around £300m in the next financial year."

Whitbread announced the move as it revealed like-for-like sales across its pubs rose 5.9 per cent in the 39 weeks to November 27, 2008.

Boosted by what it called 'value for money offers', Whitbread said covers were up nearly 10 per cent, with total sales up 5.6 per cent.

It said its pub restaurant estate was in better condition now than it had been "for many years".

The group said its overall trading had been "robust", although it admitted sales growth in November had softened.