Value-orientated pub operator JD Wetherspoon has continued its recovery in sales and profits since the impact of the pandemic.
In a pre-close trading update, the firm revealed that its like-for-like sales rose by 5.8% over the 10 weeks to 7 July. Year-to-date sales increased by 7.7%.
The group’s Chairman, Sir Tim Martin, noted that total sales were now at “record levels” despite there being fewer Wetherspoon venues than a year ago. “Sales per pub are approximately 21% higher than pre-pandemic levels, which has helped to compensate for the very substantial increase in costs,” he said.
In the year-to-date, the company has opened two pubs but sold or surrendered to the landlord 26 pubs. Most of the disposals were smaller and older sites or where there was a second Wetherspoon pub in close proximity.
It revealed that further 10 trading pubs are either on the market or under offer. The company currently has an estate of 801 pubs with a long-term target of 1,000 sites.
The disposals are part of efforts to reduce its debt burden. Wetherspoons revealed today that it expects its net debt to stand at around £670m at the end of its financial year.
In the update, Sir Tim renewed his calls for the government to equalise the tax paid on drinks between his pubs and supermarkets.
“The average Wetherspoon pub has generated taxes of one sort or another of £7m in the last 10 years, as well as generating considerable employment and social benefits,” he said.
“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 expects its profits in the current financial year to be in line with market expectations.
