Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Premier Inn to convert restaurants to rooms
Full year numbers from Whitbread LON:WTB are out this morning, with news of record pre-tax profits, a £150m share buyback in H1 ’25 and a 31% increase in dividend payments. The company also notes that it will convert some existing restaurant space into new hotel rooms to better optimise the asset, delivering a further 3,500 bedrooms.
Whilst this will have a short term impact on profitability, that should work through by FY’27 and will put the chain on target to have 97,000 rooms in the UK by FY’29.
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#2. Special dividend and share buy back at HSBC
Q1 numbers from HSBC LON:HSBA are out, with highlights including a 6bps decline in net interest margin, a 3% increase in revenues and a downward move of around 30% in impairment charges. Management have also declared a dividend of 10 cents, a special dividend off the back of the sale of the Canadian business worth 21 cents per share, plus a $3bn share buy-back. Full year guidance remains unchanged.
#3. Energy drinks give Coca Cola HBC shot in the arm
Coca Cola HBC LON:CCH has its Q1 trading update out this morning, with the company reporting organic growth of 1.8%, driven by gains in the energy drinks and coffee sales. Revenue performance was however even more impressive, up 12.6%. Management acknowledge the macroeconomic challenges, but are confident that full year targets will still be met.
