10
July 2024
J D WETHERSPOON
PLC
Pre-close trading
update
J D Wetherspoon plc (the "company")
today publishes a pre-close trading update. The preliminary results
are due to be released on 4 October 2024.
Current Trading
Like-for-like sales increased by 5.8%
in the 10 weeks to 07 July 2024, compared to the same period last
year. Year-to-date (YTD) like-for-like sales increased by
7.7%.
Property
In the year-to-date, the company has
opened two pubs and sold or surrendered to the landlord 26 pubs.
Most of the disposals were smaller and older, or where the company
has a second pub in reasonably close proximity. There was a net
cash inflow of £8.7 million from the disposals.
10 trading pubs remain on the market,
or are under offer. The company currently has a trading estate of
801 pubs.
Financial Position
The company estimates that net debt
will be approximately £670 million at the financial year
end.
On 06 June 2024, the company signed a
new four-year £840 million banking agreement on attractive
terms.
Outlook
The chairman of JD Wetherspoon, Tim
Martin, said:
"The gradual recovery in sales and
profits, following the pandemic, has continued in the current
financial year.
"Total sales are, again, at record
levels, with fewer pubs.
"Sales per pub are approximately 21%
higher than pre-pandemic levels, which has helped to compensate for
the very substantial increase in costs.
"For example, compared to the 2019
financial year, labour in this financial year has increased by
approximately £164 million, energy by £28 million, repairs (also
affected by labour costs) by £38 million and interest (excluding
IFRS 16 interest) by £16 million.
"Notwithstanding these cost
pressures, the company continues to endeavour to "widen the moat"
by investing in areas such as beer gardens, staff rooms, above-bar
glass racks and improved beer dispense systems.
"Staff retention is at its highest
ever level. 11,066 staff, an average of 14 per pub, have worked for
the company for 5 years or more. Of those, 3,895 have worked for 10
years and 632 for 20 years.
"We are also continuing to open new
pubs, with openings in the next few months, for example, in
Waterloo and Fulham Broadway stations in London, and in Marlow in
Buckinghamshire.
"The average Wetherspoon pub has
generated taxes of one sort or another of £7 million in the last 10
years, as well as generating considerable employment and social
benefits. 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.
"The company continues to expect
profits in the current financial year to be in line with market
expectations."
Enquiries:
John
Hutson
Chief Executive
Officer
01923 477777
Ben
Whitley
Finance
Director
01923 477777
Eddie Gershon
Company
spokesman
07956 392234
Notes to editors
1. J D Wetherspoon owns and operates pubs throughout the UK and
Ireland. 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.com
3. This announcement has been prepared solely to provide
additional information to the shareholders of J D Wetherspoon, to
meet the requirements of the FCA's Disclosure and Transparency
Rules. It should not be relied on by any other party, for any 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. This announcement contains inside information. The person
responsible for arranging release of the announcement on behalf of
the Company is Ben Whitley, Finance Director.
5. The current financial year comprises 52 trading weeks to 28
July 2024.
6. The next trading update is expected to be the Company's final
results announcement on 4 October 2024.