11th Nov 2020 08:53
(Alliance News) - JD Wetherspoon PLC on Wednesday reported a fall in first-quarter sales as the ubiquitous pub chain bemoaned the impositions of tighter coronavirus restrictions by the UK government.
For the 15 weeks to November 8, like-for-like sales decreased by 28%.
Wetherspoon said sales in October were significantly lower than in previous months, following the imposition of a number of new UK restrictions on the hospitality sector aimed at curbing the spread of Covid-19.
These included changes in the virus tier categories, a 10pm curfew, a requirement to order all food and drink 'at the table', and the mandatory use of face masks when moving around inside pubs.
Wetherspoon estimates its cash burn during the current month of closure to be around GBP14 million. It said 756 pubs in the UK and Ireland now are closed, while 64 in Scotland and 51 in Wales are open, though operating under restrictions.
It said it had GBP234 million in liquidity as of October 25. Liquidity is significantly higher and current liabilities lower than when the company entered the March lockdown.
"For any pub or restaurant company trading in different parts of the UK, and for customers generally, the constantly changing national and local regulations, combined with geographical areas moving from one tier to another in the different jurisdictions, are baffling and confusing. The entire regulatory situation is a complete muddle," Chair Tim Martin said.
"However, the initial regulations, following reopening, introduced on 4 July, were carefully thought through, followed thorough consultation, and were based on solid scientific foundations of social distancing and hygiene. The benefits of the regulatory hyperactivity since then, including the imposition of a curfew, are questionable," Martin added.
Broker Peel Hunt cut the stock to Hold from Add.
JD Wetherspoon shares were down 2.0% at 1,098.20 pence each on Wednesday morning.
By Arvind Bhunjun; [email protected]
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