11th Mar 2016 07:17
LONDON (Alliance News) - JD Wetherspoon PLC on Friday reported a fall in profit in the first half of its financial year as its operating margin took a further hit from wage increases, but revenue was lifted by increases in like-for-like bar and food sales.
The pub company said its pretax profit in the 26 weeks ended January 24 edged down to GBP36.6 million from GBP37.5 million, as its operating margin shrank to 6.3% from 7.4% due to a lower gross margin and higher rates of pay for pub staff.
Revenue, however, rose to GBP790.3 million from GBP744.4 million, with like-for-like bar and food sales up by 2.9%.
Since the period end, Wetherspoons said total sales in the six weeks to March 6 increased by 5.7% on a year before, while like-for-like sales grew by 3.7%. Sales comparisons in the second half of the year will be slightly more favourable, the company said, although further wage increases are due in April.
Wetherspoons will pay an interim dividend of 4.0 pence, which is flat year-on-year.
"As a number of pub companies have indicated, the pub and restaurant market is highly competitive, but we are aiming for a reasonable outcome for the financial year," Chairman Tim Martin said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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