TOP NEWS: Wetherspoon Interim Profit Jumps, Cautious On Second Half

16th Mar 2018 07:50

LONDON (Alliance News) - JD Wetherspoon PLC on Friday said profit rose significantly in the first half of its financial year, though remained cautious on its outlook for the remainder of the year due to higher costs.

Like-for-like sales in the 26 weeks ended January 28 rose 6.1%, as revenue rose 3.6% to GBP830.4 million from GBP801.4 million a year earlier.

Pretax profit, before exceptional items, rose 21% to GBP62.0 million. After exceptional items, pretax profit rose 36% to GBP54.3 million.

Like-for-like bar sales rose 5.7% in the half year, compared to 2.4% a year before, with food up 6.9% compared to 5.1% a year earlier, and fruit machines up 4.6%, from a decline of 2.1%.

Like-for-like room sales at Wetherspoon hotels increased by 3.1%, from a 14.8% rise a year prior.

Bar sales represented 61% of total sales in the period, food 35%, fruit machines 2.5% and room sales 1.1%.

The pub operator maintained its 4.0 pence interim dividend.

Since the period end, Wetherspoon said like-for-like sales rose 3.8% in the six weeks to March 11, with total sales up 2.6%.

"The company anticipates higher costs in the second half of the financial year, in areas including pay, taxes and utilities. In view of these additional costs, and our expectation that growth in like-for-like sales will be lower in the next six months, the company remains cautious about the second half of the year," said Wetherspoon Chairman Tim Martin.

"Nevertheless, as a result of slightly better-than-expected year-to-date sales, we currently anticipate an unchanged trading outcome for the current financial year," Martin added.

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