J D Wetherspoon sales up 4.2%; expects full year result in line with expectations
Source - SMW
Pub chain J D Wetherspoon said Wednesday it continued to anticipate full-year performance would be in-line with its previous expectations amid rising sales.
The pub chain said, however, that it expected 'considerable' cost increases next year.
In the year to date, like-for-like sales increased by 5.2% and total sales by 4.2%.
For the 10 weeks to 8 July 2018, like-for-like sales increased by 5.2% and total sales by 5.6%.
The company said it has opened six new pubs since the start of the financial year and sold 23 pubs.
The sale of pubs, some of which were at a loss, would result in about £9m of exceptional, non-cash losses in this financial year.
The company also confirmed it had spent £15.6m on buying the freehold 'reversions' of pubs of which it was previously a tenant.
J D Wetherspoon said it would put forward a rule 9 'whitewash' at the General Meeting in November, which would allow the company to continue to undertake buybacks.
'As in the current year, we anticipate considerable cost increases next year, in areas including business rates, the sugar tax, utility taxes and wages. In addition, as a result of an increase in our 'swaps', our interest rates will rise by around £7m,' the company said.
At 8:05am: (LON:JDW) Wetherspoon J D PLC share price was +43.5p at 1287.5p