Whitbread - Strategic Review
We first started to act for Whitbread in the final year
of David Thomas' regime in September 2002. Our initial task was to
ensure that the communication surrounding the end of his time as
Chief Executive and the handling of the succession was seen to be
well handled by the Company and its Board. David left against a background
of a rising shareprice and considerable public respect for the changes
he had wrought in the last few years of his time in office. During
the handover Whitbread bought Premier Travel Inn for some £600m,
the first of a number of strategic moves that would see a significant
reshaping of Whitbread.
Alan Parker was appointed CEO and at the end of his
first 100 days he announced the results of his strategic review
of the business. He outlined a programme of measures to improve return
on capital, reduce the number of businesses and improve the operating
performance of the remainder. This coincided with significant
management change, partly as a result of the retirement in the ordinary
course of some directors, giving rise to the appointment of Chris
Rogers as Finance Director, Tony Habgood as Chairman and a number
of senior executive appointments. This was soon followed by the announcement
of the disposal of Marriott Hotels and the exiting of German restaurants
(March/April 2005). The following eighteen months saw the disposal
of TGI Friday and Pizza Hut restaurants, and more significantly that
of the stand alone pub restaurants. Amidst much chatter of a potential
takeover Parker decided to keep David Lloyd Leisure and reverse its
decline, and allocated significant capital to the growth of Premier
Travel Inn and Costa Coffee.
When Alan took over
as CEO, Anna Glover was appointed Director of Corporate Communications.
She has been our principal contact in our client relationship and
we have worked closely with her to ensure that Whitbread and its
management team are thoroughly prepared for each news announcement.
Alan Parker and Chris Rogers have been tireless in their efforts
to communicate, to investors, analysts and the media, the management’s
desire to deliver value for shareholders - and to date they have
delivered on this ambition.