Wetherspoon (JD) PLC Interim Management Statement (3168S)
November 06 2013 - 2:08AM
UK Regulatory
TIDMJDW
RNS Number : 3168S
Wetherspoon (JD) PLC
06 November 2013
6 NOVEMBER 2013
JD WETHERSPOON PLC
FIRST QUARTER TRADING UPDATE
JD Wetherspoon plc ('JD Wetherspoon' or the 'Company') announces
its Interim Management Statement for the period up to 6 November
2013, incorporating the 13 week period to 27 October 2013, as
required by the FCA's Disclosure and Transparency rules.
Current trading
In the first quarter (13 weeks to 27 October 2013),
like-for-like sales increased by 3.7% and total sales by 7.6%.
The operating margin was 8.3%, approximately 0.3% lower than the
same period in the last financial year, mainly due to increased
labour, repairs, marketing and central overheads. The company
believes that this increased expenditure will benefit the future
performance of the business. The margin in the quarter is a
possible indicator for this financial year, assuming we achieve
reasonable sales growth.
Property
The Company opened 8 new pubs in the quarter and has 12 more
under development. We now anticipate opening 40 to 50 pubs in total
this year, slightly more than previously anticipated, helped by our
increased bank facility and a number of recent acquisitions.
Financial position
There have been no significant changes in the Company's overall
financial position, since the publication, on 11 October 2013, of
the annual report and accounts for the year ended 28 July 2013.
Outlook
As previously indicated, the biggest danger to the pub industry
is the VAT disparity between supermarkets and pubs. Since
supermarkets pay almost no VAT in respect of food sales, whereas
pubs pay 20%, supermarkets are able to subsidise their drinks'
prices to the detriment of pubs, around 10,000 of which have closed
in the last decade. It does not make economic or social sense for
the government to favour powerful supermarkets with what amounts to
a "tax break", especially since pubs generate so many more jobs,
and so much more tax, per pint or meal, than supermarkets.
In spite of the continued pressure from costs and taxes, the
company remains confident of a reasonable outcome for the current
financial year.
Enquiries:
John Hutson, Chief Executive 01923 477 777
Kirk Davis, Finance Director 01923 477 777
Eddie Gershon, Company
Spokesman 0208 352 5012/07956 392234
Notes to editors
1. JD Wetherspoon owns and operates pubs throughout the UK. The
Company aims to provide customers with good-quality food and drink,
served by well-trained and friendly staff, at reasonable prices.
The pubs are individually designed, and the Company aims to
maintain them in excellent condition.
2. Visit our website: www.jdwetherspoon.co.uk
3. This announcement has been prepared solely to provide
additional information to the shareholders of JD Wetherspoon, in
order to meet the requirements of the FCA's Disclosure and
Transparency Rules. It should not be relied on by any other party,
for other purposes. Forward-looking statements have been made by
the directors in good faith, using information available up until
the date on which they approved this statement. Forward-looking
statements should be regarded with caution, because of the inherent
uncertainties in economic trends and business risks.
4. The current financial year comprises 52 trading weeks to 27
July 2014.
5. The next trading update is expected to be the Company's
statement on 22 January 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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