City news: Travelodge, Hornby, BHP Billiton, retail spending

It plans to open an average 20 hotels each year over the next three years to take its total beyond 600 after annual pre-tax earnings lifted by £5million to £110.1million on 6.8 per cent higher revenue of £597.8million.

Gowers pointed to a £100million modernisation, the launch of business membership and on-site restaurants.

He said: “The UK is still short of good quality low-cost hotels and we see considerable further potential to expand our network.

“We are positioned to benefit from businesses looking to cut travel costs in uncertain times.”

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Move to oust Hornby chairman

Hornby is facing calls for a new chairman to be appointed to get its fortunes back on track.

The model train and Scalextric maker has received a formal request for a general meeting to oust executive chairman Roger Canham and replace him with Alexander Anton.

Anton, a small shareholder in Hornby who is backed by 20 per cent investor New Pistoia, said the business had “great potential” but the current leadership had “run out of energy”.

He also claimed Canham’s position as chairman of Hornby’s biggest investor, Phoenix Asset Management with 34 per cent, was “not in accordance with the principles of good corporate governance”.

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Mining giant shake-up call

BHP Billiton has rejected a call by activist investor Elliott Advisors for changes at the mining heavyweight.

Elliott, which owns 4 per cent, had proposed spinning off and listing Billiton’s US petroleum business.

It also wants the group’s dual-listed structure to be unified into one Australian-headquartered company.

Elliott argued that Billiton had underperformed comparable mineral and petroleum firms, but its plan could give UK shareholders a value increase of about 51 per cent.

Billiton, whose shares rose 28½p to 1316p, said: “The costs and associated risks of Elliott’s proposal would outweigh any potential benefits.”

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Shops shunned for treats

UK retail spending fell 1 per cent last month from the previous March as shopping lost out to entertainment, pubs and restaurants.

Today’s British Retail Consortium monitor shows that over the past three months non-food retail sales dipped 1.1 per cent like-for-like, the worst performance since May 2011.

Same-store food sales were down 0.2 per cent.

BRC chief executive Helen Dickinson said shoppers were focusing their spending on essentials.

Barclaycard data for March showed a 4.6 per cent increase in consumer spending, with 11.6 more on entertainment and pubs and restaurants both showing 12 per cent growth.