06
November 2024
J D WETHERSPOON
PLC
Trading Update
Announcement
J D Wetherspoon plc (the "company")
today publishes its scheduled trading update announcement for the
14 weeks to 3 November 2024, comprising quarter one (Q1) and a
further week.
Current trading
Like-for-like (LFL) sales in the
first 14 weeks of the financial year were 5.9% higher than the same
period last year. Bar sales increased by 5.7%, food by 5.7% and
slot/fruit machines by 13.5%. Hotel room sales decreased by
2.0%.
Total sales have grown by 4.6% in the
year to date, less than LFL sales, as a result of a small number of
pub disposals.
The "CGA RSM Hospitality Business
Tracker" reports monthly LFL sales for a number of multi-outlet pub
and restaurant companies.
In August, the tracker reported
industry LFL sales of +1.3%, compared to +4.1% for
Wetherspoon.
In September, the latest month for
which information is available, the tracker reported industry sales
of +1.7%, compared to +5.7% for Wetherspoon.
Wetherspoon has outperformed the
tracker for 25 consecutive months.
Property
In the year-to-date, the company has
opened two pubs - in Marlow, Buckinghamshire and at London Waterloo
station. The company plans to open a total of nine pubs in the
year, including sites at London Bridge station, Fulham Broadway
underground station and Manchester Airport.
Five pubs have been sold in the year,
giving to rise to a cash inflow of £2.4 million. The company
currently has a trading estate of 797 pubs.
Franchises
Three pubs now operate as Wetherspoon
franchises.
The first of these, at Hull
University student union, opened in January 2022. Sales have
approximately doubled compared to the pre-franchise
history.
The second, at Newcastle University
student union, opened in September 2023, and sales increased
approximately fourfold in the first year.
The most recent franchise opening was
at Haven Primrose Valley Holiday park, Filey, North Yorkshire in
March 2024, where trading has been encouraging, and we are
reviewing plans with Haven to introduce Wetherspoon to more parks
in 2025 and beyond.
Costs
Following the government budget of 30
October, taxes and business costs are expected to increase by
approximately £60 million, on an annualised basis, in calendar year
2025, including an estimated 67% increase in national insurance
contributions.
Correction
An article in Investors' Chronicle
(No Free Lunch, 23 October) said that the pub magazine, Wetherspoon
News, published 'biased articles' with regard to the 2016
referendum.
In fact, unlike most mainstream
newspapers, including Investors' Chronicle's sister newspaper, The
Financial Times, Wetherspoon News published articles reflecting
views on both sides of the referendum debate.
For example, the summer 2016 edition
of the magazine, published approximately a month before the
referendum, contained pro-remain articles by Prime Minister David
Cameron, by Nick Clegg, by government minister Anna Soubry and by
Financial Times chief economics commentator Martin Wolf. The
articles appeared alongside articles by four pro-leave advocates.
The articles can be found
here.
The editor of Wetherspoon News said,
in an introduction to the above articles, that:
"Most people feel confused by the
conflicting arguments concerning the EU referendum. Here, we have
tried to present the arguments for and against- in an easy to read
format…. There is a lot to read, but it's an important decision.
So, grab a drink, find a corner and take an hour or two to weigh up
the information in your mind…".
Wetherspoon's full press statement,
in response to the Investors' Chronicle article, can be found in
appendix 1
below.
Outlook
Wetherspoon chairman Tim Martin
said:
"The company achieved record sales in
the 14-week period and staff retention continues to be at high
levels.
"Cost inflation, which had jumped to
elevated levels in 2022, slowly abated in the following two years,
but has now jumped substantially again following the
budget.
"All hospitality businesses, we
believe, plan to increase prices, as a result. Wetherspoon will, as
always, make every attempt to stay as competitive as
possible.
"The company is confident of a
reasonable outcome for the year, although forecasting is more
difficult given the extent of the increased costs."
Appendix 1 - Correction Regarding Investors' Chronicle Article
(23 October 2024)
An article which appeared in
Investors' Chronicle (No Free Lunch, 23 October) contained a number
of inaccuracies.
For example, it repeated the myth
that Wetherspoon was named "after a teacher" who said that Mr
Martin would "never make it".
In fact, as Mr Martin has repeatedly
said, the company was named after a teacher who struggled to
control the class- just as Mr Martin struggled to control the first
pub.
The article also says that Mr Martin
"visited pubs anonymously with a hygrometer" in the early days of
the company.
This is also untrue- Mr Martin never
visited pubs anonymously and he has never owned, or used, a
hygrometer.
More importantly, the article says,
with regard to the 2016 referendum, that Mr Martin "plastered his
pubs with……biased articles in the pub chain's free
magazine."
In fact, unlike most mainstream
newspapers, Wetherspoon News published articles reflecting views on
both sides of the referendum debate.
For example, the summer 2016 edition
of the magazine, published approximately a month before the
referendum, contained pro- remain articles by Prime Minister David
Cameron, by Nick Clegg, by government minister Anna Soubry and by
Financial Times chief economics commentator Martin Wolf. The
above articles appeared alongside articles by four pro-leave
advocates. The articles can be found here.
The editor of Wetherspoon News said,
in an introduction to the above articles, that:
"Most people feel confused by the
conflicting arguments concerning the EU referendum. Here, we have
tried to present the arguments for and against- in an easy to read
format…. There is a lot to read, but it's an important decision.
So, grab a drink, find a corner and take an hour or two to weigh up
the information in your mind…".
The Investors' Chronicle also says
that Wetherspoon "lost £ 210 million between 2020 and
2022 DESPITE (Wetherspoon capital letters) receiving government
subsidies of £377 million".
This is a confusing statement - pubs
were closed for long periods during the pandemic. Furlough payments
covered most, but not all, employment costs, but clearly did not
cover rent, interest and a plethora of other business costs.
Therefore, all pub and restaurant companies inevitably made
substantial losses "despite" receiving furlough
payments.
The article contained other
inaccuracies, falsely linking, for example, the resignation of long
serving non-executive directors to Mr Martin's stance on the
referendum.
Wetherspoon chairman Tim Martin
said:
"The Investors' Chronicle article
contained a number of inaccuracies. The accusation that Wetherspoon
News was biased cannot be sustained, since it clearly featured
arguments for and against Brexit and urged readers to make up their
own mind- unlike, for example, the Financial Times, a sister
publication of Investors' Chronicle, which adopted an entirely
pro-remain stance. Ex hypothesi, that WAS bias"
Ends.
Enquiries:
John
Hutson
Chief Executive
Officer
01923 477777
Ben
Whitley
Finance
Director
01923 477777
Eddie Gershon
Company
spokesman
07956 392234
Notes to editors
1. J D Wetherspoon owns and operates pubs throughout the UK and
Ireland. 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:
www.jdwetherspoon.com
3. This announcement has been prepared solely to provide
additional information to the shareholders of J D Wetherspoon, to
meet the requirements of the FCA's Disclosure and Transparency
Rules. It should not be relied on by any other party, for any other
purposes. Forward-looking statements have been made by the
directors in good faith, using information available up until the
date on which they approved this statement. Forward-looking
statements should be regarded with caution, because of the inherent
uncertainties in economic trends and business risks.
4. This announcement contains inside information on J D
Wetherspoon plc.
5. The current financial year comprises 52 trading weeks to 27
July 2025.
6. The next trading update is expected to be issued on 22 January
2025.