The Week Ahead: Whitbread goes full steam ahead with Premier Inn

Analysts expect another positive update from Premier Inn-owner Whitbread, with many in the City anticipating a positive outlook with the hospitality group's full-year figures this Thursday.

The company has had a good recession, winning plaudits as update after update evidenced the resilience of its businesses. The share price is telling in this regard, swelling from around 900p at the beginning of 2009 to above 1600p last week. But Whitbread isn't expected to run out of steam just yet, with numerous analysts reiterating their "buy" views ahead of the figures this week.

Société Générale expects the market to focus on the road ahead for Premier Inn, noting "clear evidence that the hotel cycle is going forward a bit faster than anticipated".

"[The French hotel group] Accor underlined solid first-quarter sales for hotels in the UK, and as Whitbread strongly outperformed peers last year, we believe management could guide for slightly higher revenues per available room, or RevPar, for 2011 than before," the broker said, adding that such a nudge higher could "pave the way" for further share-price gains.

Panmure Gordon, which forecasts 2 per cent RevPar growth for 2011, is also positive on Premier Inn's prospects, citing recent industry data from STR, which reported that RevPar rose by almost 13 per cent in London and by 1.1 per cent in the regions in the 28 days to 27 March. "We also note that PricewaterhouseCoopers (by no means the most optimistic of commentators) forecasts 1.6 per cent growth in the UK regions during 2010 and Whitbread believe its should be able to outperform the market," the broker said last week.



Today: Numis is looking forward to a "solid" statement from Telecity, the data centres specialist which is due to post an interim management statement this morning, with trading during the first quarter likely to have been consistent with full-year expectations.

"We anticipate that the group will make public details of planned data centres [for example in London] in the fairly near future, and [this update] may present that opportunity," the broker said, noting that conditions in the data-centre market remain benign.

Altium is also hopeful and, like Numis, sees the possibility of news on the extension of Telecity's network. "The one note of caution regards currency, following the recent strengthening of the pound versus the euro," Altium said, pointing out that: "Telecity generates close to 50 per cent of revenues in the Euro zone".



Results/Updates: UK Coal and Telecity.



Tomorrow: The support-services group Connaught is set to post half-yearly results tomorrow and, according to the analysts at Investec, among the items of interest will be the company's accounting policies.

"Connaught's accounting policies appear more aggressive than peers, with more cost being taken into the balance sheet," the broker said. "It is possible Connaught will restate historic profits downwards to bring it in line with peers, but we believe it is more likely they will provide more detail to allow investors to adjust the results if they wish."

On the sales front, Altium expects the first half to prove weak, though there should be scope for improvement over the second half.

"We expect full-year sales to be more weighted towards the second half than usual due to the impact of the weather in January and February, which we believe is likely to have impeded repair and maintenance work in particular," the broker explained.



Results/Updates: Lloyds Banking Group, Imperial Tobacco, Premier Foods, BP, ARM Holdings and Connaught.



Wednesday: Results/Updates: British American Tobacco, Home Retail Group, Segro, Carpetright and GlaxoSmith- Kline.



Thursday: Deutsche Bank is anticipating news of continued demand for Sky's high-definition, or HD, offering when the pay-TV group issues a quarterly update later this week. "Normally, the third quarter is a 'small quarter'," the broker said, explaining that post-Christmas belt-tightening usually prompts an increase in customer churn and some moderation in gross additions. "However, this third quarter should be rather 'noisier', with the 'echo' of Sky having marketed aggressively in the second quarter, an aggressive campaign in the third quarter itself and an offer heavily aimed at bringing subscribers in on the HD product and at up–selling existing customers to HD."



Results/Updates: AstraZeneca, Charter, Go Ahead, Hammerson, Jardine Lloyd Thompson, McBride, HMV, BG, William Hill, Taylor Wimpey, British Sky Broadcasting and Whitbread.



Friday: Results/Updates: Rentokil Initial and Barclays.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Guru Careers: Management Accountant

£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power