Pub group JD Wetherspoon said good summer weather helped it to produce strong sales in recent weeks. The owner and operator of more than 900 pubs in Britain and Ireland said that for the 11 weeks to July 9th 2017 like-for-like sales increased by 5.3 per cent.
Chairman Tim Martin said: “Sales have been good in the last 11 weeks, probably helped by unusually good weather.” He also reiterated that the company expects that like-for-like sales of about 3 to 4 per cent will be required to maintain profits at this year’s levels in its next financial year.
Like-for-like sales for the 50 weeks to July 9th edged up by 3.9 per cent with total sales rising 1.9 per cent.
Wetherspoon’s shares were up 1.7 per cent in early trade. Sales at the pub chain have held up despite signs from other firms that rising inflation has forced consumers to cut spending.
‘Buy’ recommendation
Investec, in a client note, said that despite the tough consumer backdrop, it believes JD Wetherspoon remains well positioned within the UK pub space, with its value proposition and well invested pub estate continuing to take market share. It has a “buy” recommendation on Wetherspoon.
Last month it announced its intention to spend €15 million on its development of a “superpub” and 98-bedroom hotel in Dublin city centre.
The company is set to start work in February 2018, with the pub and hotel set to open early 2019. Some 200 jobs will be created at the site, which is currently a row of derelict properties on Camden Street. Wetherspoon operates five pubs in the Republic – four in Dublin and one in Cork.
Martin, one of corporate Britain’s most outspoken supporters of the UK’s exit from the European Union, earned a rebuke from the Confederation of British Industry after telling the organisation’s head to “put a sock in it” over Brexit negotiations. The business lobby group hit out over comments by Martin, who said that “gloomsters” such as CBI director general Carolyn Fairbairn should not interfere with the UK government’s negotiations. – (Reuters)
