Whitbread's dividend policy is to grow the dividend broadly in line with earnings across the cycle. An interim dividend of 32.7 pence per share (H1 FY19: 32.7p), flat versus last year, amounting to £44 million, was declared by the Board on 21 October 2019. The dividend will be paid on 13 December 2019 to all shareholders on the register at the close of business on 8 November 2019. Shareholders will again be offered the option to participate in a dividend re-investment plan.
Other financial highlights include:
Revenue broadly flat at £1,078 million, supported by contribution from new capacity
Total UK accommodation sales declined (0.6)% and like-for-like† accommodation sales declined (3.6)%, impacted by continued weak regional market conditions
Adjusted profit before tax decreased by (4.1)% in-line with like-for-like sales decline, a decrease in operating margin offset with a benefit from lower finance costs
Continued disciplined cost management delivering ongoing efficiency benefits
Statutory profit for the period (incl. Costa in H1 FY19) decreased from £234 million by (26.3)% to £172 million in-line with adjusted profit before tax and due to the sale of Costa, contributing to £47 million of profit in H1 FY19
Discretionary free cash flow of £197 million (H1 FY19 includes Costa)
Reduction in return on capital to 10.8% due to weaker market conditions and capital investment
Retained strong balance sheet following completion of £2.5 billion capital return programme
