19th Jan 2005 07:00
Wetherspoon (JD) PLC19 January 2005 JD WETHERSPOON PLC TRADING UPDATE 19 January 2005 Current Trading For the first 12 weeks of the second quarter (to the 16 January 2005),like-for-like sales increased by 0.9%, compared to a decline of 0.3% in thefirst quarter. Year-to-date like-for-like sales (25 weeks to 16 January 2005)are up 0.3% with overall company sales for the same period up by 3.8%. Margins As indicated in recent statements pub costs, (including utilities, distribution,repairs and wages) are higher than previous years, producing pressure onoperating margins. This process has continued in the financial year to datealthough our cash flow remains strongly positive. Property The first 24 weeks saw the opening of 6 new pubs with a full year target ofapproximately 15. The company has identified 15 pubs for potential disposal and this process isnow underway. Based on recent experiences it is likely that an exceptionalprovision will be included in the interim results to reflect the potential losson disposal of these outlets, although the exact charge has not yet beenascertained. Outlook The pub market remains competitive with continued pressure on both retail pricesand costs. Whilst this will have impacted the first six months the Boardcurrently believes that profits for this financial year (excluding theexceptional item covered above) will be within the range of market expectations. As stated previously, the company continues to concentrate on generating strongoperating cash flow and, in the year to date, has funded all its capitalexpenditure on existing and new pubs from organic cash flow. In spite of thecurrent demanding trading environment, the company is confident of its futureprospects. The company intends to announce its interim results on 4 March 2005. Enquiries: Jim Clarke Finance Director 01923 477777Eddie Gershon Company Spokesman 0208 352 5012/ 07956 392234 Visit our web site at www.jdwetherspoon.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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