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The Guardian - UK
The Guardian - UK
Business
Nick Huber

Whitbread froths up on strong results

Whitbread is among the top risers, up 4% to £12.39p in mid-morning trading. The owner of Britain's biggest hotel and coffee-shop chains announced plans to significantly expand its Premier Inn and Costa Coffee shops as it reported better-than-expected annual results.

Whitbread plans to increase its Premier Inn business - the company's engine of growth - by 50% to 55,000 rooms in the next five years. It also plans to double the number of Costa stores to 2,000.

It also announced a 26% rise in pretax profit before one-off items to £210.3m. That was slightly ahead of what the City expected.

Numis said the results were strong and said it expected some earnings upgrades. It said in a note: "We would anticipate some earnings upgrades and in our view the stock remains attractive at current levels."

Shire is leading the top fallers, after investment bank Credit Suisse cut its recommendation on the country's third biggest drugmaker to underperform from neutral.

Shire is down 3.5% to 907p.

The FTSE 100 has made a confident start to the week, up 37.8 points at 6129.6. On Friday it closed at its highest level since mid-January.

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