JD Wetherspoon full-year profits down 2%
Full-year pre-tax profits fell 2% to £77.8m at pub group JD Wetherspoon as the company continued to battle competition from supermarkets and restaurant groups.
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Revenues were up 7.4% to £1.5bn in the year to 26 July 2015 while like-for-like sales rose 3.3%.
After exceptional items pre-tax profits fell 25% to £58.7m.
The company reported exceptional items of £12.6m, against £17.7m in 2014. This was due to an accounting policy change, impairment charge relating to underperforming pubs and onerous leases and head office restructuring.
Free cash flow increased to £109.8m from £92.9m, while free cash flow per share was up to 89.8p from 74.1p.
Chairman Tim Martin attacked the UK government's tax policies, saying supermarkets were being given an advantage over pubs and restaurants.
"Pubs are taxed excessively and that the government would create more jobs and receive higher levels of overall revenue, if it were to create tax equality among supermarkets, pubs and restaurants," Martin said.
"Supermarkets pay virtually no VAT in respect of food sales, whereas pubs pay 20% - and this disparity enables supermarkets to subsidise their alcoholic drinks sales to the detriment of pubs and restaurants."
On current trading, Martin said like-for-like sales in the six weeks to 6 September 2015 were up 1.4%, with total sales increasing by 5.2%.
"As previously stated...a number of factors likely to influence our trading performance this financial year are difficult to quantify at this early stage,” Martin said.
“Positive aspects include an increase in pub numbers, a better economy and slightly lower interest rates; less favourable aspects include heightened competition from supermarkets and restaurant groups and increased staff, repairs, bar and food costs.”
“We continue to anticipate a trading performance similar to, or slightly above, that achieved in the last financial year."