(Alliance News) - UK pub chain JD Wetherspoon PLC on Wednesday said it continued over the holiday period its "consistent but slow recovery" in sales from Covid-19 but warned that costs are "far higher" than pre-pandemic.
Founder & Chair Tim Martin, a prominent supporter of the UK's departure from the EU, cited higher labour and energy costs. He argued that pubs are treated unfairly by the government in comparison to supermarkets, paying higher value-added tax and business rates.
"Notwithstanding these issues, Wetherspoon currently expects an outcome for the financial year in line with market expectations, and will provide further updates as the year progresses," Martin said.
The Watford, England-based company expects to announce its half-year results on March 22.
Wetherspoon said like-for-like sales were up 10% annually in the 25 weeks that ended on Sunday. Bar sales were up 12%, food sales up 7.9%, slot/fruit machine sales up 10%, and hotel room sales up 3.1%.
In the most recent 12 weeks, the main festive period, like-for-like sales were up 11%, while they were up 5.8% in past three weeks.
Total sales in the year to date are up 8.4%, the company said.
Wetherspoon expects to end financial 2024 with debt broadly in line with the GBP642 million at the end of financial 2023. It sold five pubs in recent months and surrendered eight leasehold pubs, bringing in GBP3.8 million in cash.
Wetherspoon said it currently has 814 pubs, having also opened two pubs in the financial year to date, both at transport hubs. One is at London Heathrow airport and the other at London Euston railway station.
Wetherspoon shares were down 0.1% to 839.99 pence early Wednesday in London. They are up 75% over the past year.
By Tom Waite, Alliance News editor
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Wetherspoon (J.D) (JDW)