Pub chain JD Wetherspoon (JDW) fell 1.4% to £10.28 as it reported a record annual loss, citing the impact of the pandemic and lockdown restrictions.
For the 52 weeks ended 25 July, pre-tax losses widened to £154.7 million from £34.1 million year-on-year as revenue fell 38.8% to £154.7 million.
Like-for-like sales in the first nine weeks of the current financial year were 8.7% lower than the same weeks in August and September 2019, before the pandemic started, however in the final four weeks of that period this had moderated to -6.4%.
The operating margin, before exceptional items, was -13.6%, compared with 0.6% a year earlier.
No interim dividend was paid in March 2021. The board is not proposing a final dividend payment for the year. There were no share buybacks in the financial year.
CAUTIOUSLY OPTIMISTIC
‘Wetherspoon is cautiously optimistic about the outcome for the financial year, on the basis that there is no further resort to lockdowns or onerous restrictions,’ chairman Tim Martin said.
AJ Bell investment director Russ Mould noted that beyond some mention of difficulties attracting people in staycation hotspots, there was a ‘surprising’ lack of warnings on supply chain and staffing issues.
Mould added: ‘A factor which has made life more difficult for Wetherspoons is its focus on metropolitan centres where usual levels of footfall are still to return.
‘Country pubs with lots of outdoor space have definitely fared better and this was very much in evidence in recent updates from Fuller, Smith & Turner and Marston’s which own both rural and city and town-based establishments.’
Shore Capital analyst Greg Johnson commented: ‘A full recovery in sales and margins could prove more difficult for JDW than other peers.
‘Against this, JD Wetherspoon will likely remain the alpha player across the sector and emerge, relatively at least, a stronger player.’
