Wetherspoon (J.D) Regulatory News (JDW)

22 March 2024

J D WETHERSPOON PLC

PRELIMINARY RESULTS

(For the 26 weeks ended 28 January 2024)

1Separately disclosed items as disclosed in account note 2.

Commenting on the results, Tim Martin, the Chairman of J D Wetherspoon plc, said:

"Sales continue to improve. In the last 7 weeks, to 17 March 2024, like-for-like sales increased by 5.8%.

"The company continues to be concerned about the possibility of further lockdowns and about the efficacy of the government enquiry into the pandemic, which will not be concluded for several years.

"In contrast, the World Health Organisation (WHO) reported on its findings in 2022.

"Professor Francois Balloux, director of the UCL Genetics Institute, writing in The Guardian, and Professor Robert Dingwall, of Trent University, writing in the Telegraph, provide useful synopses of the WHO report:

(see pages 54-56 of Wetherspoon News

https://www.jdwetherspoon.com/~/media/files/pdf-documents/wetherspoon-news/wetherspoon-news-autumn-2022.pdf)

"The conclusion of Professor Balloux, broadly echoed by Professor Dingwall, based on an analysis by the World Health Organisation of the pandemic, is that Sweden (which did not lock down), had a Covid-19 fatality rate "of about half the UK's" and that "the worst performer, by some margin, is Peru, despite enforcing the harshest, longest lockdown."

"Professor Balloux concludes that "the strength of mitigation measures does not seem to be a particularly strong indicator of excess deaths."

"The company currently anticipates a reasonable outcome for the financial year, subject to our future sales performance."

Enquiries:

John Hutson Chief Executive Officer 01923 477777

Ben Whitley Finance Director 01923 477777

Eddie Gershon Company spokesman 07956 392234

Photographs are available at: www.newscast.co.uk

Notes to editors

1. J D Wetherspoon owns and operates pubs throughout the UK. The Company aims to provide customers with good-quality food and drink, served by well-trained and friendly staff, at reasonable prices. The pubs are individually designed and the Company aims to maintain them in excellent condition.

2. Visit our website jdwetherspoon.com

3. The financial information set out in the announcement does not constitute the company's statutory accounts for the periods ended 28 July 2024 or 30 July 2023. The financial information for the period ended 30 July 2023 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors have reported on those accounts: their report was unquali?ed and did not contain a statement under section 498(2) or (3) of the Companies Act 2006. Statutory accounts for 2024 will be delivered to the registrar of companies in due course. This announcement has been prepared solely to provide additional information to the shareholders of J D Wetherspoon, in order to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied on by any other party, for other purposes. Forward-looking statements have been made by the directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of inherent uncertainties in economic trends and business risks.

4. The annual report and financial statements 2023 has been published on the Company's website on 6 October 2023.

5. The current financial year comprises 52 trading weeks to 28 July 2024.

6. The next trading update will be issued on 8 May 2024.

CHAIRMAN'S STATEMENT

Background

The recovery from the effects of the pandemic continued in the period under review.

In the first full post-lockdown financial year (FY22), like-for-like (LFL) sales declined by 4.7% compared to the pre-pandemic FY19.

In the second post-lockdown year (FY23), LFL sales increased by 7.4%, compared to FY19 - and in the half year under review, LFL sales increased to 15.3% compared to the same period in FY19.

In the last decade, there has been a reduction in the number of trading Wetherspoon pubs, which peaked at 955 in December 2015. Some leasehold pubs have been surrendered to landlords at the end of the lease or by negotiation, and other pubs have been sold to third parties. At the end of the period under review, the company traded from 814 pubs.

In spite of a reduction in the overall number of pubs, sales have continued to increase - total sales are now about one third higher than in 2015, when the number of pubs peaked, and sales per pub have increased by about 50% since then.

Since 2010, the company has invested £448m in acquiring the freehold "reversions" of pubs where it was previously the tenant.

71% of pubs are now freehold, an increase from 41% in 2010.

Our best estimate is that the company has potential for about 1,000 pubs in the UK.

Examples of recent pub openings include the Captain Flinders near Euston Station, London; the Stargazer, The O2, Greenwich; The Star Light, Heathrow Airport and the Scribbling Mill, White Rose Shopping Centre, Leeds.

In addition, there is potential to expand existing successful pubs, by adding gardens or, for example, by expanding the existing customer area into adjacent buildings.

Examples of the substantial expansion of existing pubs include the Prince of Wales, Cardiff; the Sir John Moore, Glasgow; the Standing Order, Derby; the Five Swans, Newcastle; the Six Chimneys, Wakefield; Wetherspoons, Victoria Station, London; the Red Lion, Skegness and the Windmill, Stansted Airport.

As previously indicated, the company is also increasing investment in new staff rooms, changing rooms, glass racks above bars (to cater for increased usage of brewers' "branded glasses") and air conditioning.

In summary, the company has recovered steadily from the pandemic, with current sales at record levels, and plans to increase sales in the next decade by investing in the areas outlined above.

Trading Summary

Total sales for the first half of FY24 were £991.0 million, an increase of 8.2%, compared to the first half of FY23.

Like-for-like sales, compared to FY23, increased by 9.9%. Like-for-like bar sales increased by 11.6%, food sales by 7.6%, slot/fruit machine sales by 10.5% and hotel rooms by 2.8%.

Like-for-like (LFL) sales were stronger than total sales due to a small number of pub disposals and lease terminations.

The operating profit, before separately disclosed items, was £67.7 million (2023: £37.4 million). The operating margin, before separately disclosed items, was 6.8% (2023: 4.1%).

The profit before tax and separately disclosed items was £36.0 million (2023: £4.6 million), including property gains of £0.1 million (2023: £0.5 million).

In the period, the company sold five pubs, terminated the lease of five pubs and sublet three pubs. This gave rise to a cash inflow of £3.8 million.

There was a loss on disposal of £5.9 million, recognised in the income statement, relating to these pubs.

The company opened two pubs; The Star Light at Heathrow Airport and the Captain Flinders, close to Euston Station in London.

The first Wetherspoon franchise pub opened at Hull University in January 2022. The second opened at Newcastle University in September 2023. The third opened at Haven Primrose Valley Holiday Park, Filey, North Yorkshire in March 2024.

Earnings per share before separately disclosed items, were 20.3p (2023: 1.0p).

Total capital investment was £57.2 million (2023: £47.8 million). £10.5 million was invested in new pubs and pub extensions (2023: £10.7 million), £34.6 million in existing pubs and IT (2023: £27.1 million) and £12.1 million in freehold reversions of properties where Wetherspoon was the tenant (2023: £10.0 million).

Separately disclosed items

Overall, there was a pre-tax 'separately disclosed loss' of £9.8 million (2023: £52.3 million).

There was a £4.1 million depreciation credit in relation to previously impaired fixed assets. The company had, in previous financial years, continued to depreciate pubs at the level which applied before the impairments. This credit corrects the 'over-depreciation'.

There was also:

- a £0.6 million charge relating to the fair value movement of interest rate swaps.

- a £1.6 million credit relating to overcharged interest in respect of IFRS-16 leases.

- a £5.9 million charge, reflecting the loss on disposal referred to above.

- a £9.3 million property impairment charge, in respect of pubs which were deemed unlikely to generate sufficient cash flows, in the future, to support their carrying value.

The tax effect on separately disclosed items is a credit of £3.7 million (2023: debit of £16.8 million).

The net book value of the company's assets in the balance sheet is £1.38 billion, which is approximately seven times the company's EBITDA (pre IFRS-16), in the last 12 months, of £198 million.

Free cash flow

There was a free cash outflow of £6.1 million in the period (2023: £166.0 million inflow). The main reason for the outflow is that 'trade and other payables', the amount that the company owed to suppliers and other third parties, such as HMRC, were £329 million at the end of FY23, reducing to £281 million at the end of the period under review.

Free cash flow benefitted from proceeds of approximately £14.8 million from a sale of interest rate swaps (please see the 'Financing' section below).

Free cash flow was calculated after capital payments of £34.6 million for existing pubs (2023: £27.1 million), £6.6 million for share purchases for employees (2023: £7.5 million) and payments of tax and interest.

Balance sheet

Debt levels, excluding IFRS-16 lease debt, were £694.2 million at the period end (30 July 2023: £641.9 million). As indicated in the 'Free cash flow' section above, there was a reduction in trade and other payables of £48 million between the last year end and the end of the period under review, which contributed to the increase in borrowings.

On an IFRS-16 basis, which includes notional debt from leases, debt increased from £1.06 billion to £1.11 billion in the first half of FY24.

Debt levels, excluding IFRS-16 lease debt, have decreased from £804.5 million to £694.2 million since January 2020, just before the first lockdown. On an IFRS-16 basis, debt decreased from £1.45 billion to £1.11 billion.

Dividends and return of capital

The board has not recommended the payment of an interim dividend (2023: £0).

During the period, 4,497,959 shares (3.5% of the share capital) were purchased by the company for cancellation, at a cost of £34.1m, including stamp duty and fees, representing an average cost per share of 779p.

Financing

The company has total available finance facilities of £963 million.

On 22 August 2023, the company disposed of all interest rate swaps in place, receiving £14.8 million to do so. At the same time, the company took out a new interest-rate swap of £200 million from 23 August 2023 through to 6 February 2025 at a rate of 5.665%. On 25 September 2023, the company took out a further interest-rate swap of £400 million from 6 February 2025 to 6 February 2028 at a rate of 4.225%. 

The total cost of the company's debt, in the period under review, including the banks' margin was 7.03%.

Taxation

The total tax charge for the period was £11.1 million in respect of profits before separately disclosed items (2023: £3.3 million).

The total tax charge comprises two parts. The first part is the actual current tax (the 'cash' tax) which this year is £0.1 million (2023: £0.9 million).

The second part is deferred tax (the 'accounting' tax), which is tax payable in future periods, that must be recognised in the current period for accounting purposes. The accounting tax charge for the period is £11.1 million (2023: £2.4 million).

Scottish Business Rates

In appendix 1 below, we explain how business rates for Scottish pubs, theoretically based on property values, have, by a strange process of legal reasoning, become a de facto sales tax, based on the sales performance of the occupier. As the famous baseball coach, Yogi Berra said: "In theory there is no difference between theory and practice - in practice, there is."

VAT equality

Wetherspoon, along with many in the hospitality industry, has been a strong advocate of tax equality between the off-trade, which consists mainly of supermarkets, and the on-trade, consisting mainly of pubs, clubs and restaurants.

Pubs, clubs and restaurants pay 20% VAT in respect of food sales but supermarkets pay nothing. Supermarkets also pay far less business rates per pint or meal than pubs.

It does not make economic sense for the tax system to favour mainly out-of-town supermarkets over mainly high-street pubs. This imbalance is a major factor in town centre and high street dereliction.

Our more detailed arguments on this point, from our last annual report, can be found in appendix 2.

How pubs contribute to the economy

Wetherspoon and other pub and restaurant companies have always generated far more in taxes than are earned in profit.

In the six months ended 28 January 2024, the company generated taxes of £383.1 million.

The table below shows the £5.8 billion of tax revenue generated by the company, its staff and customers in the last nine and a half years. Each pub, on average, generated £6.6 million in tax during that period. The tax generated by the company, during this period, equates to approximately 28 times the company's profits after tax.

Note - this table is prepared on a cash basis. IFRS-16 from FY20 onwards

Corporate governance

Wetherspoon has been a strong critic of the composition of the boards of UK-quoted companies.

Directors of UK PLCs have, on average, relatively little experience of the companies they govern, due to the "nine-year rule", which limits their tenure, combined with the fact that most directors are part-time, and have never worked for the company in question, on a full-time basis.

In addition, those responsible for overseeing governance, among institutional shareholders, are often responsible for several hundred companies each, making genuine board engagement impossible, and thereby necessitating a "tick-box" approach, which is the antithesis of good governance.

The combination of arbitrary rules, the preponderance of part-time directors and overloaded institutional governance departments means that bureaucracy and virtue-signalling, rather than innovation and efficacy, dominate most UK PLC boardrooms.

In appendix 3, further details are provided on this issue from our last annual report.

Further progress

The company has always tried to improve as many areas of the business as possible, on a continuing basis.

In the period Wetherspoon awarded £21.2 million in respect of bonuses and free shares to employees, of which 99.0% was paid to staff below board level and 89.6% was paid to staff working in our pubs.

Tenure continued to improve. The average length of service of a pub manager is now 14.6 years, and of a kitchen manager is 10.7 years.

Wetherspoon has been recognised by the Top Employers Institute as a Top Employer United Kingdom 2024. It is the 19th time that Wetherspoon has been certified by the Top Employers' Institute.

The company has an extensive training programme for its employees, including 'kitchen of excellence' training, as well as cellar, dispense and coffee academy training.

Wetherspoon has recently been included in the Financial Times 'FT - Statista Leaders 2024' report, which highlights Europe's leading companies in diversity and inclusion.

The company's UK nominated charity is Young Lives vs Cancer (previously CLIC Sargent). It supports children and young people with cancer. Since our partnership began in 2002, Wetherspoon has raised over £23 million for the charity, thanks to the generosity of our customers and employees.

In January 2024, the company was awarded the highest rating by the Sustainable Restaurant Association - the world's largest accreditation scheme for pubs and restaurants, see Link to SRA article.

Wetherspoon came first in the 'Out to Lunch' league table, compiled by the Soil Association, when last awarded, in 2019 and 2021. Restaurants and pubs are judged and scored on a range of criteria: family friendliness, healthy options, food quality, value, sustainability and ingredients' provenance.

Wetherspoon is seeking to extend the appeal of its menu. For example, 36% of the dishes on the menu that is available in the majority of pubs are vegetarian, 10% are vegan and 21% are under 500 calories.

Cod and haddock are sourced from fisheries which have been certified to the MSC's (Marine Stewardship Council) standards for well-managed and sustainable fisheries.

We are introducing a new chip scuttle to our kitchens, which helps to keep chips hot, while also reducing the risk of fire, and reducing energy consumption by around 10%.

We have introduced a food oil monitoring device to improve oil quality checks, which should reduce oil consumption and improve food quality.

Guinness have a 'Quality Accreditation Programme'. Independent assessors review 17 aspects of quality. All Wetherspoon pubs have received accreditation.

Since 2008, Wetherspoon has invited brewers from overseas to feature their ales in its real-ale festivals. To date, these brewers have contributed 234 ales, from 147 breweries in 29 countries. In addition, the company works with over 250 UK brewers, mostly small or "micro" brewers.

Since 1999, Wetherspoon has worked with independent real-ale quality assessor Cask Marque to gauge the quality of ale being served in its pubs. Cask Marque carries out an 11-point audit covering stock rotation, beer line cleanliness, equipment maintenance, glasswashing cleanliness and hygiene. A star rating is awarded from 1 to 5, with a target or 4 to 5 stars for all pubs. Cask Marque state that 66% of pubs achieve 4 or 5 stars. 99% of Wetherspoon pubs have achieved 4 or 5 stars.

Sustainability, recycling and the environment

Wherever possible, Wetherspoon separates waste into eight streams: glass; tins/cans; cooking oil; paper/cardboard; plastic; lightbulbs; food waste and general waste.

9,911 tonnes of recyclable waste were processed last year at our national recycling centre. In addition, food waste is sent for 'anaerobic digestion' and used cooking oil is converted to biodiesel for agricultural use.

Smart meters are installed in the majority of pubs to facilitate energy consumption reporting.

According to ISTA, a leading company providing energy services, Wetherspoon has reduced greenhouse gas emissions by 60% over the last 10 years, after adjusting for sales growth. During that time, the company has also contributed £107m in climate change levies and carbon taxes.

The company has 'Cleaner Power Certification' from its electricity supplier, Total Gas & Power Ltd, that states that "the electricity supplied by Total Gas & Power Ltd for the supply period of 01/10/22 to 30/09/24 will be 100% generated from renewable schemes as accredited by OFGEM".

Bonuses and free shares

As indicated above, Wetherspoon has, for many years (see table below), operated a bonus and share scheme for all employees. Before the pandemic, these awards increased, as earnings increased for shareholders.

1(IFRS-16 was implemented in the year ending 26 July 2020 (FY20). From this period all profit numbers in the above table are on a Post IFRS-16 basis. Prior to this date all profit numbers are on a Pre IFRS-16 basis.

2 Excludes 2020, 2021 and 2022.

Length of service

The table below provides details of the improved retention levels of pub and kitchen managers, key areas for any pub company, in the last decade.

Food hygiene ratings

Wetherspoon has always emphasised the importance of hygiene standards.

We now have 744 pubs rated on the Food Standards Agency's website (see table below). The average score is 4.99, with 99.1% of the pubs achieving a top rating of five stars. We believe this to be the highest average rating for any substantial pub company.

In the separate Scottish scheme, which records either a 'pass' or a 'fail', all of our 57 pubs have passed.

Property litigation

Some years ago, Wetherspoon took successful legal action for fraud against its own property advisors Van de Berg, who were found, by the court, to have diverted freehold properties to third parties, leaving Wetherspoon with an inferior leasehold interest. Following the Van de Berg case, Wetherspoon instigated further legal actions against a number of individuals and companies who had freehold properties introduced to them by Van de Berg. Liability was denied by all. The cases were contested and settled out of court. Details can be found in appendix 4.

Press corrections

In the febrile atmosphere of the first UK lockdown, a number of harmful inaccuracies were published in the press. A large number of corrections and apologies were received, as a result of legal representations by Wetherspoon.

In order to try to set the record straight, a special edition of Wetherspoon News was published, which includes details of the apologies and corrections. It can be found on the company's website:

(https://www.jdwetherspoon.com/~/media/files/pdf-documents/wetherspoon-news/does-truth-matter_.pdf ).

Pubwatch

As Wetherspoon has previously highlighted, Pubwatch is a forum which has improved wider town and city environments, by bringing together pubs, local authorities and the police, in a concerted way, to encourage good behaviour and to reduce antisocial activity.

Wetherspoon pubs are members of 541 schemes country wide, with 5 new schemes and 2 less schemes due to disposals.

The company also helps to fund National Pubwatch, founded in 1997 by just two licensees and a police office. This is the umbrella organisation which helps to set up, co-ordinate and support local schemes.

It is our experience that in some towns and cities, where the authorities have struggled to control antisocial behaviour, the setting up of a Pubwatch has been instrumental in improving safety and security - of not only licensed premises, but also the town and city in general, as well as assisting the police in bringing down crime.

Conversely, we have found, in several towns, including some towns on the outskirts of London, that the absence of an effective Pubwatch scheme results in higher incidents of crime, disorder and antisocial behaviour.

In our view, Pubwatch is integral to making towns and cities a safe environment for everyone.

Current trading and outlook

As indicated above, sales continue to improve. In the last 7 weeks, to 17 March 2024, like-for-like sales increased by 5.8%.

The company continues to be concerned about the possibility of further lockdowns and about the efficacy of the government enquiry into the pandemic, which will not be concluded for several years.

In contrast, the World Health Organisation (WHO) reported on its findings in 2022.

Professor Francois Balloux, director of the UCL Genetics Institute, writing in The Guardian, and Professor Robert Dingwall, of Trent University, writing in the Telegraph, provide useful synopses of the WHO report:

(see pages 54-56 of Wetherspoon News

https://www.jdwetherspoon.com/~/media/files/pdf-documents/wetherspoon-news/wetherspoon-news-autumn-2022.pdf)

The conclusion of Professor Balloux, broadly echoed by Professor Dingwall, based on an analysis by the World Health Organisation of the pandemic, is that Sweden (which did not lock down), had a Covid-19 fatality rate "of about half the UK's" and that "the worst performer, by some margin, is Peru, despite enforcing the harshest, longest lockdown."

Professor Balloux concludes that "the strength of mitigation measures does not seem to be a particularly strong indicator of excess deaths."

The company currently anticipates a reasonable outcome for the financial year, subject to our future sales performance.

APPENDIX 1 Extract from Wetherspoon FY23 Annual report, Chairman's Statement

Business rates transmogrified to a sales tax

Business rates are supposed to be based on the value of the building, rather than the level of trade of the tenant. This should mean that the rateable value per square foot is approximately the same for comparable pubs in similar locations. However, as a result of the valuation approach adopted by the government "Assessor" in Scotland, Wetherspoon often pays far higher rates per square foot than its competitors.

This is highlighted (in the tables below) by assessments for the Omni Centre, a modern leisure complex in central Edinburgh, where Wetherspoon has been assessed at more than double the rate per square foot of the average of its competitors, and for The Centre in Livingston (West Lothian), a modern shopping centre, where a similar anomaly applies.

As a result of applying valuation practice from another era, which assumed that pubs charged approximately the same prices, the raison d'être of the rating system - that rates are based on property values, not the tenant's trade - has been undermined.

Similar issues are evident in Galashiels, Arbroath, Anniesland - and, indeed, at most Wetherspoon pubs in Scotland. In effect, the application of the rating system in Scotland discriminates against businesses like Wetherspoon, which have lower prices, and encourages businesses to charge higher prices. As a result, consumers are likely to pay higher prices, which cannot be the intent of rating legislation.

In summary, as a result of the approach taken in Scotland, business rates for pubs are de facto a sales tax, rather than a property tax, as the above examples clearly demonstrate.

APPENDIX 2 Extract from Wetherspoon FY23 Annual report, Chairman's Statement:

VAT equality

As we have previously stated, the government would generate more revenue and jobs if it were to create tax equality among supermarkets, pubs and restaurants.

Supermarkets pay virtually no VAT in respect of food sales, whereas pubs pay 20%. This has enabled supermarkets to subsidise the price of alcoholic drinks, widening the price gap, to the detriment of pubs and restaurants. Pubs also pay around 20 pence a pint in business rates, whereas supermarkets pay only about 2 pence, creating further inequality.

Pubs have lost 50% of their beer sales to supermarkets in the last 35 or so years. It makes no sense for supermarkets to be treated more leniently than pubs, since pubs generate far more jobs per pint or meal than do supermarkets, as well as far higher levels of tax. Pubs also make an important contribution to the social life of many communities and have better visibility and control of those who consume alcoholic drinks.

.

Tax equality is particularly important for residents of less affluent areas, since the tax differential is more important there - people can less afford to pay the difference in prices between the on and off trade.

As a result, in these less affluent areas, there are often fewer pubs, coffee shops and restaurants, with less employment and increased high-street dereliction. Tax equality would also be in line with the principle of fairness - the same taxes should apply to businesses which sell the same products.

APPENDIX 3 Extract from Wetherspoon FY23 Annual report, Chairman's Statement

Corporate Governance

As a result of the 'nine-year rule', limiting the tenure of NEDs and the presumption in favour of 'independent', part-time chairmen, boards are often composed of short-term directors, with very little representation from those who understand the company best - people who work for it full time, or have worked for it full time.

Wetherspoon's review of the boards of major banks and pub companies, which teetered on the edge of failure in the 2008-10 recession, highlighted the short "tenure", on average, of directors.

In contrast, Wetherspoon noted the relative success, during this fraught financial period, of pub companies Fuller's and Young's, the boards of which were dominated by experienced executives, or former executives.

As a result, Wetherspoon increased the level of experience on the Wetherspoon board by appointing four "worker directors".

All four worker directors started on the 'shop floor' and eventually became successful pub managers. Three have been promoted to regional management roles. They have worked for the company for an average of 24 years.

Board composition cannot guarantee future success, but it makes sensible decisions, based on experience at the coalface of the business, more likely.

The UK Corporate Governance Code 2018 (the 'Code') is a vast improvement on previous codes, emphasising the importance of employees, customers and other stakeholders in commercial success. It also emphasises the importance of its comply-or-explain ethos, and the consequent need for shareholders to engage with companies in order to understand their explanations.

A major impediment to the effective implementation of comply or explain seems to be the undermanning of the corporate governance departments of major shareholders.

For example, Wetherspoon has met a compliance officer from one major institution who is responsible for around 400 companies - an impossible task.

As a result, it appears that compliance officers and governance advisors, in practice, often rely on a "tick-box" approach, which is, itself, in breach of the Code.

A further issue is that many major investors, in their own companies, for sensible reasons, do not observe the nine-year rule, and other rules, themselves. An approach of "do what I say, not what I do" is clearly unsustainable.

APPENDIX 4 Extract from Wetherspoon FY23 Annual report, Chairman's Statement:

Property Litigation

In 2013, Wetherspoon agreed an out-of-court settlement of approximately £1.25 million with developer Anthony Lyons, formerly of property leisure agent Davis Coffer Lyons, relating to claims that Mr Lyons had been an accessory to frauds committed by Wetherspoon's former retained agent Van de Berg and its directors Christian Braun, George Aldridge and Richard Harvey in respect of properties in Leytonstone (which currently trades as the Walnut Tree), Newbury (which was leased to Café Rouge) and Portsmouth (which currently trades as The Isambard Kingdom Brunel).

Of these three properties, only Portsmouth was pleaded by Wetherspoon in its case 2008/9 case against Van de Berg. Mr Lyons denied the claim and the litigation was contested.

In the Van de Berg litigation, Mr Justice Peter Smith ruled that Van de Berg, but not Mr Lyons (who was not a party to the case), fraudulently diverted the freehold of Portsmouth from Wetherspoon to Moorstown Properties Limited, a company owned by Simon Conway, which leased the property to Wetherspoon.

As part of a series of cases, Wetherspoon also agreed out-of-court settlements with:

1) Paul Ferrari of London estate agent Ferrari Dewe & Co, in respect of properties referred to as the 'Ferrari Five' by Mr Justice Peter Smith in the Van de Berg case, and

2) Property investor Jason Harris, formerly of First London and now of First Urban Group who paid £400,000 to Wetherspoon to settle a claim in which it

 was alleged that Harris was an accessory to frauds committed by Van de Berg. Harris contested the claim and did not admit liability.

Messrs Ferrari and Harris both contested the claims and did not admit liability.

INCOME STATEMENT for the 26 weeks ended 28 January 2024

STATEMENT OF COMPREHENSIVE INCOME for the 26 weeks ended 28 January 2024

CASH FLOW STATEMENT for the 26 weeks ended 28 January 2024

1 Free cash flow is a measure not required by accounting standards; a definition is provided in the accounting policies within the 2023 Annual Report.

BALANCE SHEET as at 28 January 2024

STATEMENT OF CHANGES IN EQUITY