JD Wetherspoon PLC on Wednesday said it is making higher sales from a reduced pub estate, thanks to a more than 20% increase in sales per pub since before the Covid-19 pandemic.
Watford, Hertfordshire-based Wetherspoons operates 801 pubs and hotels across the UK and Ireland. In its financial year so far, it has sold or surrendered 26 pubs while opening only 2 new pubs. A further 10 pubs remain on the market for sale, the company said.
Like-for-like sales were up 5.8% on a year before in the 10 weeks that ended on Sunday. In the financial year to date, like-for-like sales are up 7.7%, Wetherspoons said.
The company’s financial year ends later this month. It said it will release results on October 4.
Annual profit will be in line with market expectations, Wetherspoon said. Pretax profit was £90.5 million in financial 2023.
Wetherspoon said it received £8.7 million in net cash inflow from the pub sales. It estimates net debt will be £670 million at year-end. This would be up slightly from £641.9 million on July 30, 2023.
The company said it has agreed a new four-year banking facility for £840 million ‘on attractive terms’.
Amid the positive sales results, Chair Tim Martin warned of a ‘very substantial increase in costs’, particularly for labour and energy. He also continued his campaign for ‘tax equality’ between pubs and supermarkets, addressing new Chancellor of the Exchequer Rachel Reeves.
‘The last government failed to implement tax equality between pubs and supermarkets, leading to pub closures and underinvestment - Wetherspoon hopes that the current chancellor, with a Bank of England pedigree, will understand how many beans make five, and rectify this inequality,’ Martin said.
Wetherspoon shares were flat at 768.50 pence on Wednesday morning in London.
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