JD Wetherspoon PLC on Friday reported higher annual revenue and a rise in like-for-like sales in the first nine weeks of financial 2023, but said performance predictions are hard to make due to higher labour and repair costs.

Shares were up 11% at 487.09 pence each on Friday morning in London.

The Watford, England-based pub chain said revenue in the 53 weeks to July 31 came in at £1.74 billion, up significantly from £772.6 million the year prior.

Compared to financial 2020, however, revenue was down 4.3% from £1.82 billion.

Pretax loss before exceptional items narrowed substantially to £30.4 million from a £167.2 million loss on the year before.

Operating costs jumped to £1.7 billion from £872.9 million.

Stripping out exceptional items, pretax profit amounted to £56.7 million, compared to a £27.5 million loss the year before.

It declared neither a dividend nor share buybacks, unchanged from the previous year. It noted covenants restrict the payment of dividends while the company is part of the coronavirus large business interruption loan scheme.

To start the current financial year, like-for-like sales increased by 10% in the nine weeks to October 2 compared to the same period a year before.

Looking further ahead, the pub chain warned firm predictions about its financial performance are difficult to make, owing to rising costs of labour and repairs, but it is ‘cautiously optimistic’.

‘Perhaps the biggest threat to the hospitality industry is the possibility of further lockdowns and restrictions,’ it said.

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