Just over five years ago the stock market began to react in earnest to news of the Covid pandemic.The sell-off was short and sharp, with a modest recovery from the lows in the spring followed by sharper gains in November 2020 after AstraZeneca (AZN) made a vaccine breakthrough.However, a large number of UK stocks are still trading below the levels they were at by the close of trading on 21...

UK takeovers moved up a gear in 2024 as predators targeted bigger companies. The average value of deals was £1.07 billion, nearly three times higher than the £390 million average in 2023. In total, there were £49 billion worth of recommended bids versus £17.2 billion last year.A bounty of unloved or underappreciated companies were swept off their feet, signalling the UK market as being 'on...

Retail and hospitality companies have slammed the UK government's Budget as a raid on corporate coffers that will heap extra costs on already hard-pressed sectors, with Labour's 6.7% increase in the National Living Wage and uplift in employers' national insurance contributions (NICs) forecast to lead to job cuts and price hikes.Chancellor Rachel Reeves' lowering of the employers' NIC threshold...

Premier Inn Germany sales grow 22%Additional £300 million adjusted pre-tax profit expected by 2030125,000 rooms in UK & Ireland in the long-termShares in Whitbread (WTB) were 5% higher at £32.24 in morning trading despite the Premier Inn-owner reporting a 22% fall in pre-tax profit to £309 million and flat revenue of £1.5 billion for the 26 weeks to 29 August.The UK's leading hospitality...

At the start of 2024, I speculated that interest rate cuts could lead to takeovers involving bigger companies than the type of deals seen in 2023. While the rate-cut journey still remains in its infancy for the UK and other key geographies, the predicted wave of large-cap takeovers is firmly in motion. It's a reminder there is value on the UK market in droves.There have been bids or...

On 17 July, Sir Keir Starmer's new Labour government announced its plans for the first year of the new parliament, with growth and wealth creation the priority.King Charles' speech at the State Opening of Parliament included a total of 39 bills under a new legislative agenda which includes speeding up the delivery of 'high-quality infrastructure and housing' and nationalising railway...

Stock prices in Europe were higher on Tuesday afternoon, ahead of a US retail sales reading, while stocks in the UK were up after data showed grocery price inflation eased in June.The FTSE 100 index was up 32.94 points, or 0.4%, at 8,175.52. The FTSE 250 was 132.88 points, or 0.7%, at 20,292.77, and the AIM All-Share was up 2.01 points, or 0.3%, at 776.94.The Cboe UK 100 was up 0.4% at 814.27,...

Like-for-like sales turn positiveGermany on course for breakevenShares buyback continuesShares in Whitbread (WTB) gained 4% to £30.21, topping the FTSE 100 performance table, after the Premier Inn owner said it experienced a pick-up in trading towards the back end of the 13-week period to the end of May.The shares are down 17% since the beginning of the year compared with a 6% gain for the...

Stocks in Europe were in the green on Tuesday morning, with Premier Inn owner Whitbread leading the way among London's large-caps, with a UK inflation reading and Bank of England decision to come later this week.The FTSE 100 index traded 44.73 points higher, 0.6%, at 8,186.88. The FTSE 250 was up 105.39 points, 0.5%, at 20,265.11, and the AIM All-Share rose 2.97 points, 0.4%, at 777.90.The...

Whitbread (WTB) £31.76Loss to date: 8.5%When we initially recommended buying Premier Inn owner Whitbread (WTB) last summer our thesis was the shares were too cheap given the firm?s prospects and the renaissance in travel in general.Throw in an element of self-help, such as the sale of certain low-yielding assets, and we expected the market to come to its senses and re-rate the company?s...

Further £150 million buyback£150 million of cost savings plannedShares down 16% year-to-datePremier Inn-owner Whitbread (WTB) pleased investors with news of an extension to its buyback programme and a new cost-saving initiative as its full-year profit undershot market estimates.After languishing around the £30 level to begin with, the shares slowly climbed 110p or 3.5% to £31.50 by late...

Whitbread (WTB): £36.75Gain to date: 9% We recommended buying into hotel and leisure group Whitbread (WTB) in June 2023 as revenue, earnings and dividends were already well above their pre-pandemic levels but the shares had yet to recover. In addition, bookings were on an improving trend not just among holidaymakers but also business travellers and we were watching corporate...

Q3 UK Premier Inn sales up 11%Momentum continues into Q4 with UK sales up 12%Germany expected to break-even in 2024Premier Inn-owner Whitbread (WTB) notched-up strong third quarter trading with UK accommodation sales 11% up year-on-year and revenue per available room 9% ahead, while food and beverage sales grew by 6%.The company said strong trading has continued into the final quarter with UK...

On 3 January 2024, the FTSE 100 celebrates its 40th anniversary. And to borrow a cliche - it seems an opportune moment to ask, will life for the index truly begin at 40 or will it be plunged into a mid-life crisis?The index was launched as a replacement for the FT-30, which as its name suggests was a grouping of 30 businesses drawn principally from the industrial and commercial sectors. The...

The UK hospitality sector has been one of the biggest casualties of the pandemic and the slowest to rebound.Enforced closures during lockdowns, surging energy, labour and commodity prices post pandemic and ongoing train strikes mean hospitality has faced more than its fair share of obstacles over the last three years.The extra challenges mean hospitality has been slower than other sectors to...

Revenue and profits sharply higherMarket under-supply fuels growthShareholder returns raised againFTSE 100 hotel and pub operator Whitbread (WTB) delivered an 'outstanding' first-half performance according to its chief executive Dominic Paul, culminating with a 40% increase in the interim dividend and an extension of the firm's share repurchase programme.Investors shared Paul's enthusiasm,...

Given the positive summer trading updates from UK hospitality firms such as JD Wetherspoon (JDW), Marston's (MARS) and Mitchells & Butler (MAB), expectations are fairly high for Beefeater, Brewers' Fayre and Premier Inn owner Whitbread (WTB) when it reports first-half earnings on 18 October.In the first quarter to the start of June, Premier Inn accommodation sales were up 18% on last year...

Spin-offs, demergers and disposals are often good news for investors, although it's not often a firm sees its share price rise when it has to pay someone to take assets off its hands, especially when those assets were previously thought to be earnings positive.In the case of hospitality firm Restaurant Group (RTN), however, that is exactly what happened.The group, best known for its Wagamama...

Broker raises earnings forecast yet againUK hotel market remains robustScope for further buybacksDespite the ongoing impact of the cost-of-living squeeze on consumer spending, Shore Capital has upgraded its earnings estimates for budget hotels operator Whitbread (WTB) for the third time this year, sending shares in the Premier Inn owner up 1.4% to £36.90 for a near-40% year-to-date gain.The...

Recent weeks have seen a couple of encouraging economic data points for investors betting on the resilience of the UK consumer.Second-quarter GDP (gross domestic product) grew at a faster rate than expected, even as interest rates have risen, pushing up mortgage costs on top of rising food and energy bills.Wage growth also surprised to the upside at 8.2% in the second quarter, a new record and...