12th Jan 2006 10:13
Wetherspoon (JD) PLC12 January 2006 JD WETHERSPOON PLC TRADING UPDATE 12 January 2006 Current Trading For the first 11 weeks of the second quarter (to 8 January 2006), like-for-likesales increased by 0.3%, compared to a decline of 0.9% in the first quarter.Year-to-date (24 weeks to 8 January 2006) like-for-like sales have decreased by0.3%, with overall Company sales up by 0.9%. As highlighted previously, the Company has made progress in taking actions onits costs. As a result, operating margins and profit before tax for the firsthalf of the current financial year are currently expected to be materially aheadof a subdued period in the previous financial year. Property The first 24 weeks saw the opening of 5 new pubs with a full year target ofapproximately 15. Non-Smoking Pubs (total 49) The Company previously announced that first quarter like-for-like sales in thenon-smoking pubs had declined by 7.3%; this sales trend has continued in thesubsequent 11 week period. The sales decline comprises lower like-for-like barsales and fruit machine sales and increased food sales, which has led to aconsiderable drop in operating margins in these pubs. As previously indicated, the Company intends to review the programme of furthernon-smoking conversions in time for our interim results announcement on 3 March2006. Outlook Notwithstanding the expected improvement in the first half of our currentfinancial year, the pub market remains very competitive and faces severalchallenges. In March 2006, all Scottish pubs will become non-smoking, which willaffect 38 of our pubs. Combined with the potential impact of the football worldcup in June and July 2006, this leads us to take a cautious view of the possibleoutcome for the second half of the current financial year. Enquiries: John Hutson Chief Executive 01923 477777 Jim Clarke Finance Director 01923 477777 Eddie 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:
Wetherspoon (J.D)