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Annual Results

JD Wetherspoon revenues up

15 September 2017 07:15

JD Wetherspoon said revenues rose to £1,660.8m in the 53 weeks ended 30 July 2017, up from £1,595.2m in 2016.

FINANCIAL HIGHLIGHTS BEFORE EXCEPTIONAL ITEMS

- Like-for-like sales up 4%

- Profit before tax £102.8m (2016: £80.6m)

- Operating profit £128.5m (2016: £109.7m)

- Earnings per share (including shares held in trust) 69.2p (2016: 48.3p)

- Free cash flow per share 97p (2016: 76.7p)

- Full year dividend 12.0p (2016: 12p)

AFTER EXCEPTIONAL ITEMS

- Profit before tax £76.4m (2016: £66m)

- Operating profit £128.5m (2016: £109.7m)

- Earnings per share (including shares held in trust) 50.4p (2016: 43.4p)

Chairman Tim Martin said: "Most 'PLCs' are expected to comment, in their results' statements, on the UK's prospects outside of the EU and on the likely impact on their individual companies.

"It is my view that the main risk from the current Brexit negotiations is not to Wetherspoon, but to our excellent EU suppliers - and to EU economies.

"As the public instinctively understands, but few academics, economists, boardrooms and City institutions grasp, democracy is the strongest economic steroid - hence the astonishing rise of countries like Japan, Singapore and South Korea, after its adoption.

"A fascinating insight into the thought processes of many pro-Remain 'elites' can be found in an article in The Spectator by Professor Robert Tombs of Cambridge University.

"In the current negotiations, democratically-elected politicians from the UK are dealing with unelected oligarchs from the EU.

"Since the oligarchs are not subject to judgement at the ballot box, their approach is dictated by more sectarian factors - the interests and ideology of EU apparatchiks like them, rather than residents or businesses from EU countries.

"As a result of their current posturing and threats, EU negotiators are inevitably encouraging importers like Wetherspoon to look elsewhere for supplies.

"This process is unlikely to have adverse effects on the UK economy, as companies will be able to switch to suppliers representing the 93% of the world's population which is not in the EU, but this evolution will eventually be highly damaging to the economy of the EU.

"Wetherspoon is extremely confident that it can switch from EU suppliers, if required, although we would be very reluctant to initiate such actions.

"It is my view that Juncker, Barnier, Selmayr, Verhofstadt and others need to take a wise-up pill in order to avoid causing further economic damage to struggling economies like Greece, Portugal, Spain and Italy - where youth unemployment, in particular, is at epidemic levels.

"There seems to be little genuine appetite for a free-trade deal from the Brussels bureaucracy, so EU companies are, paradoxically, reliant on the goodwill of UK consumers, who are likely to prefer tariff-free goods in the future from non-EU countries, which are generally in favour of free trade, rather than deals with companies which are subject to the diktat of those who wish to punish the UK.

"I have written an article dealing with several issues related to Brexit, which can be found in the latest edition of Wetherspoon News.

"Since the year end, Wetherspoon's like-for-like sales have continued to be encouraging and have increased by 6.1%.

"This is a positive start, but is for a few weeks only - and is very unlikely to continue for the rest of the year.

"Comparisons will become more stretching - and sales, which were very strong in the summer holidays, are likely to return to more modest levels. It is anticipated that like-for-like sales of around 3-4% will be required in order to match last year's profit before tax.

"We will provide updates as we progress through the year.

"We currently anticipate a trading outcome for the current financial year in line with our expectations."

Story provided by StockMarketWire.com

Related Company: JDW

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