Wetherspoon makes 15 pub announcement after selling six | UK | News
Pub chain JD Wetherspoon has issued a profit warning after revealing costs rose by £45 million in its first half. The company said it was struggling with expenses that exceeded expectations due to rising wage bills and business rates in the first 25 weeks of the financial year.
The group confirmed that first-half profit would “likely be lower”; If current trading patterns continue, full-year results are also expected to fall “slightly” below last year’s figures. This cautionary statement comes despite an increase in comparable sales over the festive period; It rose to 6.1% in the 12 weeks ending Jan. 18, compared to 4.7% in the previous three months.
During the year the business has opened six new sites so far: London Bridge station, Merchant Square in Paddington, Kenilworth, Basildon, Wetherby and Beaconsfield. The company expects to open a total of 15 locations in the current fiscal year.
The evacuation of six businesses this year generated a net cash inflow of £3.3 million. The company currently operates a managed commercial property comprising 794 pubs.
Additionally, eight franchise sales points have been opened since the beginning of the year, bringing the total number to 16. A further 10-15 stores are expected to open during the remainder of the financial year, including the firm’s inaugural opening at Alicante Airport on the Spanish mainland.
Wetherspoon chairman Tim Martin said: “We are pleased with the sales growth in the financial year and the increased momentum in the second quarter.
“Costs have turned out to be higher than expected, with energy, wages, repairs and business rates rising by £45 million in the first 25 weeks, for example. Profits in the first half are likely to be lower than in the comparable period of the previous financial year.
