Profits, sales jump at JD Wetherspoon

(Sharecast News) - Pubs chain JD Wetherspoon posted a jump in full-year sales and profits on Friday, despite a slew of higher costs.

Revenues sparked 4.5% in the 52 weeks in 27 July, to £2.13bn, while pre-tax profits came in at £81.4m, a 10.1% improvement on the previous year.

Like-for-like sales were up 5.1%.

The group, which had 794 managed pubs by the end of the period, said increases in the minimum wage and employers' National Insurance contributions would add around £60m per year to its cost base.

Both increased in April this year.

Higher energy prices are expected to add £7m, it continued, while the new extended producer responsibility tax - which is designed to reduce packaging waste - would cost £2.4m in the current year.

Tim Martin, Wetherspoon's outspoken founder and chair, said: "Cost increases such as these undoubtedly add to underlying inflation in the UK economy, although Wetherspoon as always will endeavour to keep price increases to a minimum."

Looking to current trading, the chain said like-for-like sales increased 3.2% in the nine weeks to 28 September.

Martin did not provide further details, other than to add: "The company currently anticipates a reasonable outcome for the financial year, although government-led cost increases in areas such as energy may have a bearing on the outcome."