Interactive PDF Whitbread PLC Annual Report and Accounts 2013/14

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Interactive PDF Whitbread PLC Annual Report and Accounts 2013/14 Whitbread PLC Annual report and accounts 2013/14 Interactive PDF User guide This PDF allows you to find information and navigate around this document more easily. Links in this PDF Words and numbers that are underlined are links – clicking on them will take you to further information within the document or to a web page (which opens in a new window) if they are a url (e.g www.whitbread.co.uk). Guide to buttons Back to user guide Search this PDF Print options Preceding page Next page Last visited page Annual Report and Accounts 2013/14 “ Making everyday experiences special” Overview Financial highlights Whitbread has delivered another year of strong double–digit growth in sales, profit and dividend. p1/5 More on our financial performance p4 Chairman’s statement p6 Chief Executive’s review p38 Finance Director’s review Total revenue Underlying basic EPS2 report Strategic £2,294.3m +13.0% 179.02p +20.1% m p m p p6/43 m p m p Underlying profit 2 before tax Full–year dividend £411.8m +16.5% 68.80p +19.9% m p m p Governance m p m p 3 4 Group return on capital Cash flow from operations p44/81 13.9%1 to 15.3% £526.0m to £601.3m Net debt Group like for like sales £471.1m to £391.6m Up 4.2% 1 Restated for the impact of IAS 19 (revised 2011). 3 Return on capital is the return on invested capital 2013/14 accounts Consolidated See Note 2 of the consolidated financial statements which is calculated by dividing the underlying profit for 2012/13. before interest and tax for the year by net assets at the balance sheet date adding back debt, taxation 2 Underlying profit excluding amortisation of acquired liabilities and the pension deficit. intangibles, exceptional items and the impact of the pension finance cost as accounted for under IAS 19. 4 Cash generated from operations in the financial Underlying EPS represents the earnings per share statements excluding the pension payments. based on the above underlying profit definition and the tax thereon. p83/133 An interactive PDF of our Report and Accounts is available to download online. Company accounts 2013/14 2013/14 accounts Company www.whitbread.co.uk/investors p135/142 Overview Whitbread is all about people. As the UK’s Contents leading hospitality company, our success Overview Financial highlights p1/5 1 Introduction is thanks to 43,000 motivated and engaged 2 Group at a glance team members delivering outstanding service 4 Chairman’s statement to 22 million customers every month across our hotels, coffee shops and restaurants. We use this simple model, which we call The Whitbread Way, to describe our business Strategic report report Strategic Strategic report philosophy. 6 Chief Executive’s review 8 Our business model: The Whitbread Way 9 Good Together 10 Hotels & Restaurants p6/43 20 Costa 30 Risk management 34 Key Performance Indicators 38 Finance Director’s review 42 HR Director’s report Governance More on Winning Teams on p12 and p22 Governance More on Customer Heartbeat on p14 and p24 44 Corporate governance 46 Board of Directors More on Profitable Growth on p17 and p27 53 Audit Committee report More on Good Together on p9, p19 and p29 56 Nomination Committee p44/81 report 58 Remuneration report Our vision is to grow legendary brands 77 Directors’ report by building a strong Customer Heartbeat and innovating to stay ahead. It’s our Winning Teams that make everyday experiences special for our customers so they come back Consolidated accounts 2013/14 2013/14 accounts Consolidated time and again, driving Profitable Growth. Consolidated accounts 2013/14 Our Good Together programme makes 84 Directors’ responsibility statement us a force for good in our communities. 85 Independent auditor’s report 88 Consolidated financial statements 93 Notes to the consolidated financial statements p83/133 Company accounts 2013/14 2013/14 accounts Company Company accounts 2013/14 136 Directors’ responsibility statement 137 Independent auditor’s report 138 Balance sheet 139 Notes to the accounts Shareholder information p135/142 144 Shareholder services 146 Glossary 148 Our charities Whitbread Annual Report and Accounts 2013/14 1 Overview Group at a glance p1/5 The Group Strategic report Whitbread p6/43 Whitbread has built some of the We’ve set our sights on ambitious and fast–paced profitable growth and last year announced new growth milestones. UK’s most successful hospitality By 2018 we plan to increase the size of Premier Inn to around brands including Premier Inn and 75,000 UK rooms and the system sales of Costa to around Costa. We employ over 43,000 £2 billion. people in the UK and serve Our businesses share common values and a clear vision on responsibility. We have demonstrated our ability to 22 million customers every month. build strong brands through the consistent delivery of Our strategy is to grow our operational excellence and a great customer experience Governance leading brands with a clear focus in people–intensive businesses. on returns to deliver substantial Listed on the London Stock Exchange, Whitbread PLC shareholder value. is a member of the FTSE 100 and the FTSE4Good indices. p44/81 Our businesses More on p10 Hotels & Restaurants to p19 Premier Inn is the UK’s leading hotel Consolidated accounts 2013/14 business, with over 670 hotels and more than 55,000 rooms across the UK. We have more rooms in more locations than our competitors, which allows our customers to stay closer to where they want to be. We offer our customers a 100% money–back guarantee of a good night’s sleep with a quality room, comfortable p83/133 surroundings and friendly service. We call it our Good Night Guarantee. All Premier Inn UK bedrooms have an ensuite bathroom, Company accounts 2013/14 TV with Freeview and Wi–Fi internet access. All our hotels have a bar and restaurant, either inside the building or next to it, offering a wide range of dishes. Whitbread’s unique joint site model means that 377 of these hotels are located alongside our own restaurant brands: Beefeater; Brewers Fayre; Table Table; and Taybarns. A further 149 hotels include one of our Thyme restaurants. Internationally, we have five hotels in the Middle East and three in India with more in the pipeline. p135/142 For the Hotels & Restaurants Investor Day presentations please see www.whitbread.co.uk/investordays Whitbread Group at Annual Report and Accounts 2013/14 a glance 2 Overview p1/5 Premier Inn is the UK’s Costa was again voted the leading hotel business. UK’s favourite coffee shop. Strategic report More on p38 More on p17 and p27 p6/43 Revenue by business Growth Hotels & Restaurants Premier Inn Revenue Rooms m m Up net new rooms Costa Restaurants Revenue m net new restaurants Governance m Up Costa Stores p44/81 net new stores More on p20 Costa to p29 Consolidated accounts 2013/14 Costa, voted the UK’s favourite coffee shop, has grown significantly over the past five years and now has1,755 coffee shops in the UK and1,106 overseas. Only 1% of the world’s coffee beans are good enough to create the unique taste and aroma of our Costa Mocha Italia blend. Almost all the coffee we serve in the UK, p83/133 and most of that served in the rest of the world, is roasted at our Lambeth roastery. Costa is an international brand represented in 30 countries. Company accounts 2013/14 It has a multi–channel strategy, with equity stores, franchise stores and stores operated by joint ventures, as well as a wholesale operation. Costa Express now has over 3,500 self–service machines. For the Costa Investor Day presentations please see www.whitbread.co.uk/investordays p135/142 Whitbread Group at Annual Report and Accounts 2013/14 a glance 3 Overview Chairman’s statement p1/5 This is another set of good results. Once again strong Strategic report cash flow funded the necessary capital investment for our growth engines, Premier Inn and Costa, to increase their share of the market. We have recommended p6/43 an increase in the full–year dividend by 19.9% while Anthony Habgood maintaining debt at a prudent level. I am confident Chairman that the brand strength of Premier Inn and Costa will continue to fuel the Company’s growth into the future. Whitbread continues to evolve in a fast changing trading and economic environment. Premier Inn has, for example, responded to the growing competitive presence of online travel agents by significantly increasing its digital capability and resources. It has also Governance announced the launch of ‘hub by Premier Inn’ which is a new city centre focused hotel concept. Costa is consistently looking to find new ways of ensuring that its customers are never far from a cup of Costa Coffee — for example through new distribution channels such as drive–thru and a new generation of Costa Express machine. Our restaurants have p44/81 also been updating their brand propositions. This focus on innovation is essential for a modern company to prosper. Dividend The Board recommends a final dividend of 47.00p per share, making a total dividend of 68.80p per share, up by 19.9%. The final dividend will be paid on 4 July 2014 to shareholders on the register at the close of business on 30 May 2014. The Scrip Dividend Scheme, which was introduced in 2009, has been closed. It has been replaced by a new Dividend Reinvestment Plan, which will not have the effect of diluting shareholdings. Further information on how to participate in this new plan can be found on the Company’s website.
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