18th Mar 2022 08:02
(Alliance News) - JD Wetherspoon PLC on Friday reported a narrowed interim loss, but the pub chain is yet to return to the business seen in pre-pandemic times.
Revenue for the half-year that ended January 23 came in at GBP807.4 million, nearly double the GBP431.1 million posted a year before. However, sales remain below the GBP933.0 million achieved two years ago, a pre-pandemic period.
Wetherspoon's pretax loss narrowed to GBP21.3 million from GBP46.2 million a year ago, but the bottom line remains far off the profit of GBP57.9 million registered two years ago.
Performance remained hindered by the pandemic in the recent half, with sales hit by Covid restrictions and virus-related staff absences.
Like-for-like sales were down 12% on two years ago. But the Wetherspoon highlighted improving trends, with sales in the three weeks to March 13 down just 2.6% on pre-pandemic levels.
"Following a traumatic two years for many businesses and people, the ending of Covid restrictions has brought a return to more normal trading patterns in recent weeks," the company said.
Noting the industry-wide inflationary backdrop, Wetherspoon said there is pressure on input costs from food, drink and energy suppliers, though this mitigated somewhat by a number of long-term contracts. Overall, the company expects the increase in input prices to be "slightly less than the level of inflation".
Looking ahead, Chair Tim Martin said: "The company is confident of a strong future if restrictions are avoided. The readiness of the leaders of all the UK's main political parties to resort to lockdowns, and extreme restrictions, which were not contemplated in the UK's 2019 plans for pandemics, is the main threat to the future of the hospitality industry, but also to the economy."
No interim dividend was recommended, in line with a year ago.
Wetherspoon shares were up 0.3% at 829.23 pence in London early Friday.
By Lucy Heming; [email protected]
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