Wetherspoon Updates: 15 Pubs to Change Post-Six Sales

Pub chain JD Wetherspoon has reported significant profit warnings amid rising costs that have surged by £45 million in the first half of its financial year. The company, which operates 794 pubs and eight franchised outlets, is currently facing increased expenses driven by higher wages and business rates.

Financial Challenges and Forecasts

The company disclosed that operating costs have exceeded initial projections during the first 25 weeks of the financial year. Full-year results are expected to fall slightly below last year’s figures if current trading conditions continue.

Despite these financial challenges, Wetherspoon has experienced a positive trend in sales growth. The festive period saw a like-for-like sales increase of 6.1% for the 12 weeks ending January 18, compared to a growth of 4.7% in the previous quarter.

Expansion Plans Amid Struggles

• Six new pubs opened this year, located in London Bridge station, Merchant Square, Kenilworth, Basildon, Wetherby, and Beaconsfield.
• The company aims to reveal a total of 15 new venues by the end of the current financial year.
• Net cash inflow from the sale of six establishments totaled £3.3 million.

Franchise Growth

Wetherspoon’s expansion efforts include eight franchised outlets opened this year, increasing the total to 16. The chain plans to add another 10-15 franchises, notably its first venture in mainland Spain, set to open at Alicante Airport.

Chairman’s Remarks

Tim Martin, chairman of Wetherspoon, commented on the sales growth achieved this fiscal year. He acknowledged the difficulties posed by rising costs, stating: “Costs have been higher than anticipated, with energy, wages, repairs, and business rates, for example, increasing by £45 million in the first 25 weeks.” He noted that profits for the first half are likely to be lower than the previous year’s comparable period.

As the company pushes forward with its expansion and adapts to current challenges, the outlook remains cautiously optimistic, contingent on the stabilizing of costs and the maintenance of sales momentum.