4th May 2016 07:39
LONDON (Alliance News) - Pub operator JD Wetherspoon PLC on Wednesday said like-for-like and total sales grew in the third quarter but that its operating margin was weaker year-on-year.
The FTSE 250-listed company said like-for-like sales grew 3.8% year-on-year in the 13 weeks to April 24, with total sales up 5.5%. Wetherspoons said the like-for-like growth was in line with trading in the first six weeks of the quarter, as reported in its interim results.
For the nine months to April 24, like-for-like sales rose 3.2% and total sales were up 5.9%.
But the group said its operating margin declined to 6.4% in the third quarter, compared to 7.5% a year earlier, reflecting an increase in starting rates for hourly paid staff which came into force in August 2015.
"Sales during the quarter have continued at approximately the same levels reported on 11 March 2016 in our interim statement. We are still aiming for a reasonable outcome for the financial year," said Tim Martin, chairman of Wetherspoons.
Wetherspoons also said it will launch a share buyback to repurchase up to GBP60.0 million of shares in the financial year ending July 2017. The shares purchased by the company will then be cancelled.
Shares in Wetherspoons were up 0.6% to 683.5p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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