Shares in pubs operator JD Wetherspoon (JDW) slid 1% to £13.06 after typically pugnacious commentary from chairman Tim Martin in the company’s latest trading update.
Martin continued to rail against government-imposed restrictions, calling the many regulations imposed at tremendous cost to the nation ‘disappointing.’ The pub group’s founder added that restrictions ‘appear to have had no real basis in common sense or science,’ drawing attention to substantial meals with drinks, and masks for bathroom visits.
JD Wetherspoon swung to a first-half loss as Covid restrictions forced the company to shutter its pubs. For the half year ended 24 January, the pre-tax loss was £68 million compared with a profit of £35.7 million on year-on-year as revenue fell 54% to £461.1 million.
The company did not recommended an interim dividend.
REOPENING RESTRICTED
Wetherspoon announced that it would be opening beer gardens, roof-top gardens and patios at 394 of its pubs in England from 12 April 2021.
Danni Hewson, finance analyst at AJ Bell, commented: ‘Less than half of the pubs in the Wetherspoons chain will be able to reopen in April; this is an empire that’s been built to cater for city centre revellers and outdoor space is often limited.
‘No doubt Mr Martin will be keeping a close eye on the results of the legal challenge being brought against the Government to bring forward the reopening of indoor hospitality in line with non-essential retail. Every day the tills aren’t ringing, costs are rising.
‘But the real question for this business is what happens if further restrictions are required going into the autumn.
‘“Sensible policies” are the answer says the Wetherspoons boss, not a return to lockdowns or the tier system. As for most of the economy, this is a business that is relying on the speed and efficacy of the vaccine rollout.’
