Whitbread coffee boost

Premier Inn-owner Whitbread has posted a 13% hike in half-year profits following a strong performance from its drinks outlet, Costa Coffee.

The group delivered underlying pre-tax profit of £99.4 million in the six months to August 30. Costa Coffee sales leapt 7% on a like-for-like basis. Whitbread's recently rebranded Premier Inn business, which has around 490 hotels across the UK, saw like-for-like sales rise by 11%.

Whitbread, which sold its David Lloyd Leisure arm for £925 million earlier this year, said the second half had also got off to a strong start.

Whitbread reported a more muted interim performance at its restaurant division, which was trimmed earlier this year after the sale of its 45-strong TGI Friday's eateries.

The business, which includes the Beefeater and Brewers Fayre restaurants, saw like-for-like interim sales growth of 2%, with a 20% drop in operating profits to £28.7 million.

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