We would love to hear your thoughts about our site and services, please take our survey here.

Less Ads, More Data, More Tools Register for FREE

JD Wetherspoon Launches Share Placing To Raise Over GBP90 Million

Tue, 19th Jan 2021 17:44

(Alliance News) - JD Wetherspoon PLC said late Tuesday that it is launching an equity placing to help the pub chain weather the storm brought about by stringent UK lockdown restrictions.

Wetherspoon is proposing to raise between GBP92.1 million and GBP93.7 million through the issue of around 8.4 million placing shares at a price between 1,100 pence and 1,120p per placing share, to be determined at the close of the bookbuild. The stock closed up 4.1% at 1,183.00p on Tuesday.

Wetherspoon said the proceeds of the placing will be used to further strengthen the company's balance sheet, working capital and liquidity position during the period of disruption brought about by the pandemic.

Further, the additional capital will provide sufficient liquidity to deal with very low sales after reopening, helping the company to return to growth as the market normalises, it added.

Investec Bank PLC is acting as the sole bookrunner.

Turning to current trading, the Watford-headquartered firm reported a like-for-like sales decrease of 28% for the 15 weeks to November 8. Sales in the latter part of the quarter were adversely affected by the introduction of changes to the tier categories, a 10pm curfew, a requirement to order all food and drink 'at the table', and the mandatory use of face masks when moving around inside pubs, it added.

Wetherspoon highlighted that all pubs have been closed since December 31 due to lockdown restrictions, from which point the company's sales have been zero.

The company noted that the duration of the current lockdown and ongoing restrictions is uncertain at this stage and the current assumptions are that its pubs will remain closed until the end of March 2021.

"The Covid‐19 outbreak is having a severe impact on the UK pub sector. After a number of false starts, the hospitality industry generally anticipates a return to more normal trading patterns in the spring and summer, as a result of the introduction of a mass vaccination programme. The equity placing announced today will help the company, along with the other actions it has taken, to emerge from the pandemic in a strong position," said Chair Tim Martin.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Related Shares

More News
19 Apr 2024 09:26

LONDON BROKER RATINGS: Peel Hunt starts NatWest and Barclays at 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and Thursday:

22 Mar 2024 16:53

LONDON MARKET CLOSE: Rate cut euphoria lifts FTSE 100; New York slips

(Alliance News) - London's FTSE 100 ended higher on Friday, boosted by a favourable Bank of England interest rate outlook, though trade elsewhere was ...

22 Mar 2024 16:09

London close: Stocks mixed as Bailey hints at rate cuts

(Sharecast News) - London's stock markets closed in a mixed state on Friday as investors weighed optimistic retail sales data against remarks from Ban...

22 Mar 2024 11:46

LONDON MARKET MIDDAY: FTSE 100 boosted after week of rate decisions

(Alliance News) - The FTSE 100 in London were higher at midday on Friday, as investor sentiment remained high, after there were no surprises from UK a...

22 Mar 2024 09:23

JD Wetherspoon half-year profit plummets amid higher property losses

(Alliance News) - JD Wetherspoon PLC on Friday said it expects a "reasonable outcome" for its financial year despite its interim profit halving, but r...

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.