7th Mar 2008 07:00
Wetherspoon (JD) PLC06 March 2008 7 March, 2008For immediate release J D WETHERSPOON PLC PRESS RELEASE J D Wetherspoon plc announces interim results for the twenty-six weeks to 27 January 2008. Highlights Turnover up 0.4% to £440.2m Operating profit down 4% to £44.4m Operating Margin down 0.5% to 10.1% Profit before tax down 13% to £28.5m Earnings per share down 11% to 12.9p Free cash flow per share 11.3p (2007: 17.0p) Dividend per share 4.4p (2007: 4.0p) Commenting on the results, Tim Martin, the Chairman of J D Wetherspoon plc,said: "The half year to 27 January 2008 was a challenging period for the Company, andfor the pub trade generally, since it followed smoking bans in England, Walesand Northern Ireland in the second half of the last financial year. Asanticipated, the introduction of the bans resulted in a strong growth in foodsales but a decline in bar sales, which put pressure on margins and profits. In February, we continued to generate strong growth in food sales combined witha decline in bar sales. We expect second half sales trends to be broadly similarto those of the second quarter, to experience some cost pressures, and thereforehave a slightly more cautious outlook for the second half of this financialyear. We continue to believe that the smoking bans are to the long term advantage ofthe trade. Bar sales are likely to recover as customers adjust to the newregime, although the exact timing of this is still uncertain. Significantfuture cost pressures exist, for instance in respect of energy and raw materialcosts, and we will seek to minimise these where possible. As a result of ourdedicated staff and our excellent pubs, I remain confident of our futureperformance." Enquiries: John Hutson Chief Executive Officer 01923 477777Keith Down Finance Director 01923 477777Eddie Gerson Company Spokesman 07956 392234 Photographs are available at: www.newscast.co.uk 7 March 2008 Notes to editors 1. JD Wetherspoon owns and operates pubs throughout the UK.The Company aims to provide customers with good-quality food and drink, servedby well-trained and friendly staff, at reasonable prices. The pubs areindividually designed and the Company aims to maintain them in excellentcondition. 2. Visit our website www.jdwetherspoon.co.uk 3. This announcement has been prepared solely to provideadditional information to the shareholders of JD Wetherspoon, in order to meetthe requirements of the UK Listing Authority's Disclosure and TransparencyRules. It should not be relied on by any other party, for other purposes.Forward-looking statements have been made by the directors in good faith usinginformation available up until the date that they approved this statement.Forward-looking statements should be regarded with caution because of inherentuncertainties in economic trends and business risks. 4. The next Interim Management Statement will be issued on 29April 2008. Chairman's Statement The half year to 27 January 2008 was a challenging period for the Company, andfor the pub trade generally, since it followed smoking bans in England, Walesand Northern Ireland in the second half of the last financial year. Asanticipated, the introduction of the bans resulted in a strong growth in foodsales but a decline in bar sales, which put pressure on margins and profits. Total sales, including new pubs, increased marginally by 0.4% to £440.2 million(2007: £438.4 million), although like for-like-sales declined by 2%. Operatingprofit decreased by 4.1% to £44.4 million (2007: £46.3 million) and profitbefore tax by 13.4% to £28.5 million (2007: £32.9 million). Earnings per sharedecreased by 11% to 12.9p (2007: 14.5p). The operating margin before interest and tax decreased to 10.1% (2007: 10.6%),due primarily to higher costs including labour and depreciation. Net interestwas covered 2.8 times (2007: 3.5 times) by operating profit. Total capitalinvestment was £28.9 million in the period and the total for this financial yearis expected to be £55 million. Free cash flow, after capital investment of £6.2 million in existing pubs, £0.7million in respect of share purchases under the Company's Share Incentive Planand payments of tax and interest, declined to £16.0 million (2007: £25.6million). This decline was due to lower pre-tax profits, timing differences inworking capital and increased interest payments. This resulted in free cash flowper share of 11.3p (2007: 17.0p) before investment in new pubs, proceeds frompub disposals, dividend payments and share buybacks. Further progress Food sales have continued to increase strongly, and now amount to an average of£8,600 (incl. VAT) per pub per week (2007: £7,900). We estimate that about 60%of our trade is from food and drinks associated with meals. Coffee and breakfastsales, areas of strong focus in recent years, continue to improve. For example,we are currently selling approximately 514,000 coffees and teas per week, anincrease of around 12% compared to last year. We have recently reviewed our product range and have introduced a number of newbeers including Coors Light, a popular American draught lager, which hasdemonstrated encouraging sales since its launch. In addition sales of real alecontinue to improve and our beer festival which took place in November 2007 sold2.2m pints of ale, an increase of 24% on the same festival in 2006. Wine salesalso continue to increase and our Californian Coldwater Creek, exclusive toWetherspoon in the pub trade, is, we believe, the biggest pub brand, outsellingBlossom Hill, for example. Dividends, return of capital The Board has decided to declare an interim dividend per share of 4.4p (2007:4.0p), an increase of 10%, payable on 30 May 2008, to shareholders on theregister at 2 May 2008. Dividend cover was 2.9 times (2007: 3.6 times) During the period under review, we purchased 1.0 million of our own shares forcancellation at a cost of £5.7 million. Property The first half saw the opening of 10 new pubs, bringing the number of pubs openat the period end to 681. We anticipate opening a total of 23 pubs in thisfinancial year. Taxation We expect the tax rate for this financial year to be approximately 35.6%, upfrom 33%, due to an increase in non-qualifying depreciation, legislative changesin capital allowances and a reduced tax benefit from share employee benefits(2007: 33.3%. comparable basis adjusted for change in deferred tax rate from 30%to 28%). Financing As at 27 January 2008, the Company's total net borrowings were £462.5 million(29 July 2007: £433.8 million) and total facilities were £522.2 million.Longer-term interest rates declined in the period and the Company has enteredinto £400 million of fixed-rate swap arrangements which expire in 2014 - 2016and have an average interest cost of approximately 5.5%.; £150 million of thesereplace an existing swap arrangement expiring in 2009. We intend to keep thesenew arrangements in place for a considerable period of time, notwithstanding amarked-to-market net loss taken to reserves during the period. As a result, themajority of our debt is now fixed at competitive terms. People In the period under review, the company paid bonuses of £6.0 million toemployees, 94% of which was paid to people working in our pubs. In addition, wepurchased £0.6 million worth of Wetherspoon shares under the SIP Scheme; takinginto account previous purchases made, this results in a total pool of sharesheld on behalf of employees worth £9.2 million. Social Issues There is rightly considerable concern about a minority of people who mis-behavewhen drinking alcoholic products. The predominant response of the governmentand authorities has been a crackdown on under 18 year olds drinking in pubs andclubs. We think this is unlikely to solve the problem since most anti socialbehaviour results from older age groups. Furthermore a large number of parentsthemselves used pubs and clubs or drank at parties or other social occasionswhen they were under 18 and now actively collaborate in enabling their 16 and 17year old children to do so themselves. Very high levels of police and otherresources are concentrated on keeping 16 and 17 year olds out of pubs and clubsbut it does not address the underlying issues. Our view is that the central problems concerning people who mis-behave whendrinking are cultural ones. This is demonstrated by examples of poor behaviourby a number of celebrities during the recent televised Brit Awards and byhabitual drunken celebrations in the context of sporting events and otheroccasions, which then receive huge press coverage. This sort of behaviour is nota new phenomenon, and is frequently replicated by the general public duringbirthday parties, stag and hen parties and so on. Although it is often perceivedthat pubs benefit from these sorts of occasions, it is our experience that theyare often bad for the pub trade, since they are difficult for pub staff to dealwith and can be intimidating for the majority of customers. The behaviour of customers at Wetherspoons pubs is generally extremely good. Weaim to attract a wide variety of age groups, which is itself a contributingfactor to good behaviour, and to make available food and coffee, for example,during longer hours than any other major pub company. The correct approach for the authorities, in our opinion, as in the case of thegenerally successful campaigns over drink driving, is to concentrate on themessage that pubs and drinking are legitimate activities, but they bring anobligation to behave responsibly. The current effort to prevent under 18 yearolds drinking is likely to fail, since it is difficult to enforce, especiallysince almost all parents permit these age groups to drink. Financial investors' activity in the UK pub market There has been a fashion in the last few years for equity and venturecapitalists to acquire groups of pubs, usually involving very high levels ofdebt and extensive sales and leasebacks of freehold property, with a view toboosting short term profits ('ebitda') and then selling the pubs soonthereafter. Efforts are focused on boosting short term profits by heavyincentives for senior management combined with considerable capital expenditureon the pubs. The boost to profits is typically not sustainable, producingpredictable results for future acquirers. In addition, excessive numbers ofpubs were recently built in some large town city centres, usually on a leaseholdbasis. Many of these pubs are probably now unprofitable and will have to beconverted to other uses over time. The combination of equity and bank finance ispotentially keeping unviable pubs open and so creates instability in the generalUK pub market. Board changes On 30 October 2007, Jim Clarke, Finance Director and Company secretary resignedfrom the company. We would like to thank Jim for his contribution in the last 10years. Jim was succeeded by Keith Down, previously Commercial Finance Directorat Tesco, where he worked for 5 years, on 7 January 2008. We are pleased to announce the appointments to the Board of Paul Harbottle,Chief Operating Officer and Su Cacioppo, Personnel and Legal Director. Paul hasbeen with the business for 5 years, initially as Head of Distribution before hisappointment as COO in 2007. Su has been with the business for 17 years,initially starting as a pub shift manager. She was appointed Personnel Directorin 1999, and assumed responsibility for Retail Services in 2005 and Legal in2006. We are mindful of the overall composition of the Board. Current trading and outlook In view of the well documented impact of smoking bans on the pub tradegenerally, we believe our performance in the first half has been resilient. InFebruary, we continued to generate strong growth in food sales combined with adecline in bar sales. We expect second half sales trends to be broadly similarto those of the second quarter, to experience some cost pressures, and thereforehave a slightly more cautious outlook for the second half of this financialyear. We continue to believe that the smoking bans are to the long term advantage ofthe trade. Bar sales are likely to recover as customers adjust to the newregime, although the exact timing of this is still uncertain. Significantfuture cost pressures exist, for instance in respect of energy and raw materialcosts, and we will seek to minimise these where possible. As a result of ourdedicated staff and our excellent pubs, I remain confident of our futureperformance. Tim MartinChairman6 March 2008 Income statement for the 26 weeks ended 27 January 2008 Notes Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 Revenue 4 440,166 438,374 888,473Operating costs (395,742) (392,103) (797,360) Operating profit 5 44,424 46,271 91,113Finance income 33 27 206Finance costs (15,982) (13,425) (29,295)Profit before tax 28,475 32,873 62,024Tax expense 6 (10,135) (11,130) (15,190) Profit for the period 18,340 21,743 46,834 Earnings per share (pence) 7Earnings per ordinary share 12.9 14.5 31.8Fully diluted earnings per share 12.9 14.4 31.6 All activities relate to continuing operations. Statement of recognised income and expense for the 26 weeks ended 27 January2008 Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 27 January 2008 28 January 2007 29 July 2007 £000 £000 £000 Cash flow hedges: net (loss)/gain taken to equity (12,491) 3,657 5,833Tax on items taken directly to equity 3,497 (1,096) (1,777)Net (loss)/gain recognised directly in equity (8,994) 2,561 4,056Profit for the period 18,340 21,743 46,834 Total recognised income for the period 9,346 24,304 50,890 Cash flow statement for the 26 weeks ended 27 January 2008 Notes Unaudited Unaudited Unaudited Unaudited Audited Audited 26 weeks 26 weeks 26 weeks 26 weeks 52 weeks 52 weeks ended ended ended ended ended ended 27 January 27 January 28 January 28 January 29 July 29 July 2008 2008 2007 2007 2007 2007 £000 £000 £000 £000 £000 £000 Cash flows from operatingactivitiesCash generated from operations 8 55,617 55,617 60,273 60,273 124,933 124,933Interest received 33 33 27 27 189 189Interest paid (23,686) (23,686) (13,025) (13,025) (27,610) (27,610)Corporation tax paid (8,974) (8,974) (10,103) (10,103) (19,598) (19,598)Purchase of own sharesfor share-based payments (671) (671) (1,053) (1,053) (1,489) (1,489)Net cash inflow from operating 22,319 22,319 36,119 36,119 76,425 76,425activities Cash flows from investingactivitiesPurchase of property, plant and (6,229) (6,229) (10,548) (10,548) (24,046) (24,046)equipment and intangible assetsfor existing pubsProceeds of sale of property,plant and equipment and assetsheld for resale 646 3,773 4,768Investment in new pubs and pub (28,681) (22,686) (51,951)extensionsNet cash outflow from investing (34,264) (6,229) (29,461) (10,548) (71,229) (24,046)activities Cash flows from financingactivitiesEquity dividends paid (11,240) (4,537) (10,295)Proceeds from issue of ordinary 415 4,954 5,927sharesPurchase of own shares (5,661) (37,288) (77,015)Advances under bank loans 28,322 28,106 76,135Finance lease principal payments (230) - (1,988)Net cash inflow/(outflow) fromfinancing activities 11,606 (8,765) (7,236)Net decrease in (339) (2,107) (2,040)cash and cash equivalentsOpening cash and cash equivalents 19,052 21,092 21,092Closing cash and cash equivalents 18,713 18,985 19,052Free cash flow 16,090 25,571 52,379 Free cash flow per ordinary share 7 11.3p 17.0p 35.6p Balance sheet as at 27 January 2008 Notes Unaudited Unaudited Audited 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 AssetsNon-current assetsProperty, plant and equipment 9 787,413 751,868 782,269Intangible assets 10 3,862 2,831 3,566Other non-current assets 11 6,974 6,967 6,685Derivative financial instruments 10,312 - -Deferred income tax assets 4,473 3,789 975 Total non-current assets 813,034 765,455 793,495 Current assetsInventories 17,524 18,129 19,029Other receivables 14,841 12,174 11,761Assets held for sale 179 923 848Cash and cash equivalents 12 18,713 18,985 19,052 Total current assets 51,257 50,211 50,690 Total assets 864,291 815,666 844,185 LiabilitiesCurrent liabilitiesTrade and other payables (93,478) (118,234) (119,183)Financial liabilities (821) - (559)Current income tax liabilities (10,620) (10,679) (9,679) Total current liabilities (104,919) (128,913) (129,421) Non-current liabilitiesFinancial liabilities (493,836) (392,720) (440,232)Derivative financial instruments (13,809) (15,603) (16,335)Deferred tax liabilities (79,619) (85,970) (79,400)Provisions and other liabilities (6,017) (6,620) (6,190) Total non-current liabilities (593,281) (500,913) (542,157) Net assets 166,091 185,840 172,607 Shareholders' equityOrdinary shares 14 2,831 2,951 2,849Share premium account 141,835 140,455 141,422Capital redemption reserve 1,589 1,461 1,569Retained earnings 19,836 40,973 26,767 Total shareholders' equity 15 166,091 185,840 172,607 Notes 1. General information The company is a public limited company, incorporated and domiciled in the UK.The address of its registered office is: J D Wetherspoon plc, Central Park,Reeds Crescent, Watford, WD24 4QL The company is listed on the London Stock Exchange. This condensed consolidation half-yearly financial information was approved forissue on 6 March 2008. These interim financial results do not comprise statutory accounts within themeaning of Section 240 of the Companies Act 1985. Statutory accounts for theyear ended 29 July 2007 were approved by the Board of directors on 7 September2007 and delivered to the Registrar of Companies. The report of the auditors onthose accounts was unqualified, did not contain an emphasis of matter paragraphand did not contain any statement under Section 237 of the Companies Act 1985. 2. Basis of preparation This condensed half-yearly financial information of J D Wetherspoon plc (the 'Company'), which is abridged and unaudited, has been prepared in accordance withthe Disclosure and Transparency Rules of the Financial Services Authority andwith International Accounting Standards (IAS) 34, Interim Financial Reporting,as adopted by the European Union. The half-yearly condensed consolidatedfinancial report should be read in conjunction with the annual financialstatements for the year ended 29 July 2007, which have been prepared inaccordance with IFRSs as adopted by the European Union. The financial information for the year ended 29 July 2007 is extracted from thestatutory accounts of the Company for that year. The interim accounts for the six months ended 27 January 2008 and thecomparatives to 28 January 2007 are unaudited, but have been reviewed by theauditors. A copy of the review report is included at the end of this report. 3. Accounting policies The accounting policies adopted are consistent with those of the annualfinancial statements for the 52 week period ended 29 July 2007, as described inthose annual financial statements. The following new standards, amendments to standards or interpretations aremandatory for the first time for the period ending 27 July 2008: • IFRIC 7: 'Applying the restatement approach under IAS 29', effective for annual periods beginning on or after 1 March 2006. The interpretation is not relevant for the Company. • IFRIC 8: 'Scope of IFRS 2', effective for annual periods beginning on or after 1 May 2006. This interpretation has not had any impact on recognition of share-based payments in the Company. • IFRIC 9: 'Reassessment of embedded derivatives', effective for annual periods beginning on or after 1 June 2006. This interpretation has not had a significant impact on the reassessment of embedded derivatives, as the Company has already assessed whether embedded derivatives should be separated, using principles consistent with IFRIC 9. • IFRIC 10: 'Interims and impairment' effective for the annual periods beginning on or after 1 November 2006. This interpretation has not had any impact on the timing or recognition of impairment losses, as the Company has already accounted for such amounts, using principles consistent with IFRIC 10. • IFRIC 11: 'IFRS 2 - Group and treasury share transactions', effective for annual periods beginning on or after 1 March 2007. Management does not expect this interpretation to be relevant for the Company. • IFRS 7: 'Financial instruments: Disclosures', effective for annual periods beginning on or after 1 January 2007. IAS 1: 'Amendments to capital disclosures', effective for annual periods beginning on or after 1 January 2007. IFRS 4: 'Insurance contracts', revised implementation guidance, effective when an entity adopts IFRS 7. As this interim report contains only condensed financial statements and there are no material financial instrument-related transactions in the period, full IFRS 7 disclosures are not required at this stage. The full IFRS 7 disclosures, including sensitivity analysis to market risk and capital disclosures, required by the amendment of IAS 1, will be given in the annual financial statements. The following new standards, amendments to standards and interpretations havebeen issued, but are not effective for the financial year ending 27 July 2008and have not been adopted early: • IFRIC 12: 'Service concession arrangements', effective for annual periods beginning on or after 1 January 2008. Management does not expect this interpretation to be relevant for the Company. • IFRS 8: 'Operating segments', effective for annual periods beginning on or after 1 January 2009. Management does not currently foresee any changes to the Company's business segments. • IFRIC 13, 'Customer loyalty programmes' effective for annual periods beginning on or after 1 January 2008. Management does not expect this interpretation to be relevant for the Company. • IFRIC 14, 'IAS 19 - The limit on a defined benefit asset, minimum funding requirements and their interaction' effective for annual periods beginning on or after 1 January 2008. Management does not expect this interpretation to be relevant for the Company. • IAS 23 (Amendment) 'Borrowing costs' effective for annual periods beginning on or after 1 January 2008. This may have an impact upon the Company should borrowings be used to finance additions to property, plant and equipment. 4. Revenue Revenue disclosed in the income statement is analysed as follows: Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 Sales of goods and services 440,166 438,374 888,473 The company trades in one business segment (that of operating managed publichouses) and one geographical segment (being the United Kingdom). The business is subject to minor seasonal fluctuations dependant on publicholidays and the weather. 5. Operating profit This is stated after charging/(crediting): Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000Operating lease payments:- land and building: • minimum lease payments 21,443 21,187 41,796 • contingent rents 5,511 5,055 10,388- equipment and vehicles 102 89 203Repairs and maintenance 13,310 15,445 35,572Rent receivable (199) (169) (327)Depreciation of property, plant and equipment- owned assets 21,838 21,127 41,997- assets held under finance leases 459 - 557Amortisation of intangible assets 590 543 1,044Amortisation of non-current assets 107 250 348Share-based payment charges 1,310 1,352 3,014Loss/(profit) on disposal of properties 513 (829) (1,281)Impairment of fixed assets - 618 876 6. Taxation The taxation charge for the six months ended 27 January 2008 is calculated byapplying an estimate of the effective tax rate of 35.6% for the year ending 27July 2008 (2007: 29.8%). The UK standard rate of corporation tax is 30% (2007:30%), and the latest estimate of the current tax payable on profits for thefinancial year ending 28 July 2008 is 35% (2007: 30%). The increase in the estimated effective tax rate for this financial year to35.6%, from 33.3% (adjusted for change in deferred tax rate from 30% to 28%) forthe year ended 29 July 2007, is due to an increase in non-qualifyingdepreciation, legislative changes in capital allowances and a reduced taxbenefit from share employee benefits. Unaudited Unaudited Audited 26 weeks 26 weeks 52 weeks ended ended ended 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 Current tax 9,916 9,973 18,470 Deferred tax:Origination and reversal of timing differences 219 1,157 2,192Adjustment in respect of a change in tax rate - - (5,472)Total deferred tax 219 1,157 (3,280) Tax charge in the income statement 10,135 11,130 15,190 7. Earnings and free cash flow per share Basic earnings per share has been calculated by dividing the profit attributableto equity holders of £18,340,000 (January 2007: £21,743,000; July 2007:£46,834,000) by the weighted average number of shares in issue during the yearof 141,804,184 (January 2007: 149,989,023; July 2007: 147,256,488). Diluted earnings per share has been calculated on a similar basis, takingaccount of 300,263 (January 2007: 915,222; July 2007: 910,449) dilutivepotential shares under option, giving a weighted average number of ordinaryshares adjusted for the effect of dilution of 142,104,447 (January 2007:150,904,245; July 2007: 148,166,937). Earnings per share Unaudited Unaudited Audited 26 weeks 26 weeks 52 weeks ended ended ended 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 Profit for the period (£000) 18,340 21,743 46,834Basic earnings per share 12.9p 14.5p 31.8pDiluted earnings per share 12.9p 14.4p 31.6p Free cash flow per share The calculation of free cash flow per share is based on the net cash generatedby business activities and available for investment in new pub developments andextensions to existing pubs, after funding interest, tax, all other reinvestmentin pubs open at the start of the period and the purchase of own shares under theemployee Share Incentive Plan ('free cash flow'). It is calculated before takingaccount of proceeds from property disposals, inflows and outflows of financingfrom outside sources and dividend payments and is based on the same number ofshares in issue as that for the calculation of basic earnings per share. 8. Cash generated from operations Unaudited Unaudited Audited 26 weeks ended 26 weeks ended 52 weeks ended 27 January 2008 28 January 2007 29 July 2007 £000 £000 £000 Profit for the period 18,340 21,743 46,834Adjusted for:Tax 10,135 11,130 15,190Amortisation of intangible assets 590 543 1,044Depreciation of property, plant and equipment 22,297 21,127 42,554Amortisation of non-current assets 107 250 348Impairment of fixed assets - 618 876Loss/(profit) on disposal of property, plant and equipment 513 (829) (1,281)Share-based payment charges 1,310 1,352 3,014Interest income (33) (27) (206)Interest expense 15,828 13,283 28,821Amortisation of bank loan issue costs 154 142 474 69,241 69,332 137,668Change in inventories 1,505 (4,441) (5,341)Change in receivables (3,112) (2,149) (1,717)Change in payables (12,017) (2,469) (5,677) Net cash inflow from operating activities 55,617 60,273 124,933 9. Property, plant and equipment £000 Net book amount at 30 July 2007 782,269Additions 27,954Disposals (513)Depreciation, impairment and other movements (22,297) Net book amount at 27 January 2008 787,413 £000 Net book amount at 31 July 2006 743,826Additions 31,655Disposals (1,943)Depreciation, impairment and other movements (21,670) Net book amount at 28 January 2007 751,868 10. Intangible assets £000 Net book amount at 30 July 2007 3,566Additions 886Amortisation, impairment and other movements (590) Net book amount at 27 January 2008 3,862 £000 Net book amount at 31 July 2006 2,858Additions 516Amortisation, impairment and other movements (543) Net book amount at 28 January 2007 2,831 Intangible assets all relate to computer software. 11. Other non-current assets Unaudited Unaudited Audited 26 weeks 26 weeks 52 weeks ended ended ended 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 Leasehold premiums 6,974 6,967 6,685 12. Analysis of changes in net debt 29 July 2007 Cash flows Non-cash 27 January 2008 movement £000 £000 £000 £000Cash in bank and in hand 19,052 (339) - 18,713Debt due after one year (437,840) (28,322) (25,329) (491,491)Derivative financial instrument - fair value hedge (15,017) - 25,329 10,312Net borrowings (433,805) (28,661) - (462,466)Derivative financial instrument - cash flow hedge (1,318) - (12,491) (13,809) Net debt (435,123) (28,661) (12,491) (476,275) 13. Dividends paid and proposed Unaudited Unaudited Audited 26 weeks 26 weeks 52 weeks ended ended ended 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 Paid in the periodFinal dividend for 2006/07 - 8.0p (2005/06 - 3.1p) 11,255 4,537 4,537Interim dividend for 2006/07 - 4.0p - - 5,758 Dividends paid 11,255 4,537 10,295 Dividends per share in respect of the periodFinal dividend - - 8.0pInterim dividend 4.4p 4.0p 4.0p Dividends per share 4.4p 4.0p 12.0p On 30 May 2008, the Company will pay an interim dividend of 4.4 pence per shareamounting to £6.3m, not accounted for as a liability in the balance sheet, forthe half year ended 27 January 2008 to shareholders on the register at the closeof business on 2 May 2008. 14. Share Capital Number of Shares Share 000s Capital £000 Opening balance at 30 July 2007 142,447 2,849Allotments 134 2Purchase of shares (1,010) (20) Closing balance at 27 January 2008 141,571 2,831 Number of Share Capital Shares £000 000s Opening balance at 31 July 2006 153,776 3,076Allotments 1,564 31Purchase of shares (7,794) (156) Closing balance at 28 January 2007 147,545 2,951 The total authorised number of 2p ordinary shares is 500 million (2007: 500million). All issued shares are fully paid. During the year, 1,010,000 shares were purchased by the Company forcancellation, at a cost of £5.7 million, representing an average cost per shareof 564p. 15. Statement of changes in shareholders' equity Unaudited Unaudited Audited 27 January 28 January 29 July 2008 2007 2007 £000 £000 £000 At beginning of period 172,607 201,575 201,575Exercise of options 415 4,954 5,927Repurchase of shares (5,661) (40,755) (77,015)Share-based payment charges 1,310 1,352 3,014Purchase of shares held in trust (671) (1,053) (1,489)Profit for the period 18,340 21,743 46,834Cash flow hedges: net (loss)/gain taken to equity (12,491) 3,657 5,833Tax on items taken directly to equity 3,497 (1,096) (1,777)Dividends (11,255) (4,537) (10,295) Closing shareholders' equity 166,091 185,840 172,607 16. Related party disclosure There have been no material changes to related parties transactions described inthe last annual financial statements. There have been no related partytransactions having a material effect on the entity's financial position orperformance in the first half of the current financial year. 17. Capital commitments The Company has capital commitments for which no provision has been made inrespect of property, plant and equipment of £4.4m (2007: £0.5m). Statement of directors' responsibilities The directors confirm that this condensed set of financial statements has beenprepared in accordance with IAS 34, as adopted by the European Union, and thatthe interim management report herein includes a fair review of the informationrequired by DTR 4.2.7 and DTR 4.2.8. The directors of J D Wetherspoon plc are listed in the J D Wetherspoon plcannual report 29 July 2007, with the exception of the following changes in theperiod: Mr J Clarke retired on 31 October 2007; Mr K Down was appointed on 7January 2008. A list of current directors is maintained on the J D Wetherspoonplc Web site: www.jdwetherspoon.co.uk By order of the board John HutsonChief Executive6 March 2008 Keith DownFinance Director6 March 2008 Independent review report to J D Wetherspoon plc Introduction We been engaged by the company to review the condensed set of financialstatements in the half-yearly financial report for the twenty-six weeks ended 27January 2008, which comprises the income statement, balance sheet, statement ofrecognised income and expense, cash flow statement and related notes. We haveread the other information contained in the half-yearly financial report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the information in the condensed set of financialstatements. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approvedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report, in accordance with the Disclosure and Transparency Rules ofthe United Kingdom's Financial Services Authority. As disclosed in note 2, the annual financial statements of the group areprepared in accordance with IFRSs, as adopted by the European Union. Thecondensed set of financial statements included in this half-yearly financialreport has been prepared in accordance with International Accounting Standard34, 'Interim Financial Reporting', as adopted by the European Union. Our responsibility Our responsibility is to express to the company a conclusion on the condensedset of financial statements in the half-yearly financial report, based on ourreview. This report, including the conclusion, has been prepared for, and onlyfor, the company for the purpose of the Disclosure and Transparency Rules of theFinancial Services Authority and for no other purpose. We do not, in producingthis report, accept or assume responsibility for any other purpose or to anyother person to whom this report is shown or into whose hands it may come, savewhere expressly agreed by our prior consent in writing. Scope of review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, 'Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity', issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation comprises making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters which might be identified in an audit. Accordingly,we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention which causes us tobelieve that the condensed set of financial statements in the half-yearlyfinancial report for the twenty-six weeks ended 27 January 2008 is not prepared,in all material respects, in accordance with International Accounting Standard34, as adopted by the European Union, and the Disclosure and Transparency Rulesof the United Kingdom's Financial Services Authority. PricewaterhouseCoopers LLPChartered AccountantsLondon6 March 2008 Notes: (a) The maintenance and integrity of the J D Wetherspoon plc Web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters; accordingly, the auditors accept no responsibility for any changes which may have occurred to the financial statements since they were initially presented on the Web site. (b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Wetherspoon (J.D)