Annual profits slide at Wetherspoons as costs rise

(Sharecast News) - JD Wetherspoon reported a slump in annual profits on Friday, weighed down by higher costs. The pub chain saw revenues rise 5.2% in the 52 weeks to 26 July, to £2.24bn, or by 4.2% on a like-for-like basis. However, pre-tax profits before separately disclosed items slid 28% to £58.6m following a 5.3% spike in costs, including wages, repairs and business rates.

Including separately disclosed items, such as impairments and property gains, pre-tax profits were 13% lower at £77.7m.

Founder and chair Tim Martin said: "The hospitality industry, as many commentators and companies have noted, has borne the brunt of government-led tax and regulatory cost increases, especially in the last two budgets. This has resulted in pubs becoming even more expensive than supermarkets, leading to job losses, closures and high street dereliction.

"It is to be hoped that the powers-that-be will refrain from any further increases, since pubs and restaurants pay around 40% of their receipts as taxes of one sort or another - and provide immense financial support to the Treasury, as well as social support to the community."

Looking to current trading, and Wetherspoons said underlying sales had jumped in the nine weeks to 27 September by 8.6%, including a 7.7% uplift in August, on the back of the unusually warm summer weather.

"Wetherspoon has made a good start to the financial year, although it is at least partially due to weather, which will inevitably revert to the norm," said Martin. "At this early stage, we continue to anticipate profit before tax and separately disclosed items in line with current market expectations."

Consensus for the 2027 full year is for pre-tax profits before separately disclosed items of £74m.

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