15th Mar 2019 08:20
LONDON (Alliance News) - JD Wetherspoon PLC on Friday reported a significant drop in profit for the first half of its financial year, hampered by higher costs, and warned of a similar outcome for the full year to July.
Shares in the pub chain operator dropped early Friday on the news but then recovered. It was trading 0.8% lower at 1,281.85 pence each, having fallen as low as 1,220.00p.
For the six months to January 27, Wetherspoon's pretax profit fell 19% to GBP50.3 million from GBP62.0 million in the comparative period a year ago.
Revenue was up 7.1% to GBP889.6 million from GBP830.4 million, with like-for-like sales increased 6.3%.
The company attributed the fall in profit to cost increases in areas including labour, up by GBP33.0 million. Meanwhile, repairs increased GBP3.7 million, utilities by GBP2.5 million, and interest & depreciation by GBP5.7 million.
The pub chain held its interim dividend at 4.0 pence per share.
Looking ahead, Wetherspoon reported that in the six weeks to March 10, like-for-like sales increased by 9.6%, helped by "excellent weather" compared with snow and cold freezing temperatures last year. Total sales increased by 11%.
"As previously indicated, costs in the second half of the year will be higher than those of the same period last year. The company anticipates an unchanged trading outcome for the current financial year," Chair Tim Martin said.
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Wetherspoon (J.D)