4th Nov 2015 08:11
LONDON (Alliance News) - Pub operator JD Wetherspoon PLC saw its shares fall in early trade after it said its operating margin has deteriorated in recent weeks, though like-for-like and total sales have increased.
The FTSE 250-listed company said its total sales rose 6.1% in the 13 weeks to October 25, as like-for-like sales rose 2.4%, boosted by the Rugby World Cup taking place in the latter part of the period.
But the group's operating margin for the period fell to 6.2%, from 7.7% a year earlier, due to increases in the starting rates for hourly-paid staff, which had added a total of 13% of those costs.
Wetherspoon added it is considering some freehold disposals following a review of its pub estate, in addition to the 20 leasehold pubs it currently has up for sale.
"As we indicated in September, it is difficult to quantify exactly the factors which will influence our trading performance in the early stages of a financial year. Increased labour costs are clearly an important factor for all pub and restaurant companies and may result in our annual profits being slightly lower than the last financial year," said Chairman Tim Martin.
Shares in the company were down 4.6% in early trade to 740.00 pence, one of the worst performers in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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Related Shares:
Wetherspoon (J.D)