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These have had an excellent 3 months - they report early next month.

Friday preview: JD Wetherspoon up against soft comparatives
Thu 13 Sep 2012

JDW - Wetherspoon

LONDON (SHARECAST) - Pubs group JD Wetherspoon announces full-year results, but of greater interest will be the update on trading in the first six weeks of the current year.

Although the weather has not been kind to pubs this summer, the group is going up against relatively soft comparatives from a year earlier, when like-for-like sales were up just 0.4% year-on-year.

The market has pencilled in £1.23bn for sales and pre-tax profit of £71.2m. Earnings per share are tipped to advance to 41.6p while the dividend is seen climbing to 12.95p.

"We look for news on plans for the redeployment of capex [capital expenditure] from the scaled back opening programme. We think increasing dividends faster than earnings would be particularly well received by the market," Panmure Gordon said.

"We think there is underlying top-line momentum in the business and margins should stabilise as the 176 pubs opened over the last four years mature and the drag from new pubs diminishes as the number of openings is reduced. However we note the group is aggressively discounting certain products (cider, wine, spirits and cocktails) between now and the end of November which could depress gross margins," the broker added.

PRELIMINARY RESULTS

'Record sales, profit and earnings per share before exceptional items'


FINANCIAL HIGHLIGHTS Excluding Week 53


· Revenue £1,197.1m (2011: £1,072.0m) +11.7% +9.3%

· Like-for-like sales +3.2%

· Free cash flow £91.5m (2011: £78.8m) +16.1%

· Free cash flow per share 73.2p (2011: 59.7p) +22.6%

· Profit before tax £58.9m (2011: £61.4m) -4.1%

· Dividends per share 12.0p (2011: 12.0p)

Before exceptional items:

· Operating Profit £107.3m (2011: £102.3m) + 4.9% + 2.6%

· Profit before tax £72.4m (2011: £66.8m) + 8.4% + 5.8%

· Earnings per share 41.3p (2011: 35.3p) +17.0% +14.4%

Very good last year.. but uncertainty next. Wondering what the market thinks.

Tanker needs to spend more on his lunches! :-)

I agree, ordering food will benefit him -):

Talking about food/Wetherspoon we were desperate for some food in Mold the other week so gave the local Spoons a try. Surprisingly we were very impressed (and I'm someone who does like "Good" Food. Had the same very surprising positive same experience at a Marston Pub/Hotel a couple of months back.

A mate of mine has said similar - he is a bit of pub grub man and says that our local spoon has improved no end since the spring. As to the Marstons experience, they are my current play in the sector.

InterimManagement Statement

Current trading

In the first quarter (13 weeks to 28 October 2012), like-for-like sales increased by 7.1% and total sales increased by 11.1%, helped by a strong performance during the Olympics and Paralympic games. We do not expect this level of sales growth to be sustained for the rest of the financial year.

The operating margin was 8.6%, approximately 0.4% lower than the last financial year, due to increases in costs in areas such as tax, utilities, labour and bar and food supplies, combined with increased marketing costs.

You've got to hand it to them. Love 'em or loath 'em, they are very good at adapting to a changing market and are offering punters a reasonable range of products. It may not be the top end of the pub offerings, but my local (city centre) JDW is often jammed packed with all ages spending money.

Harry - I agree - although they always seem less than salubrious - especially after dark!

My play on the sector is MARS, but I have held/traded JDW several times over the years.

Similar chart, but a better yield.

Up another 2% today on £200k of trades.

Looking to go long here tomorrow, ideally @ 520.0.

Got in on the spreads @ 523.0 just a wee punt (Rolling Daily) Stop @ 515.0

Stop to entry for risk free trade.

Stopped out at open ridiculous spread (slippage) @ 519.2 - 3.8

Bad luck Chris - JDW is often very gappy 1st thing.

Win some lose some skinny :O)

Another one that looks to have got away :O( Look again in Jan. 16th interim management statement, 15th March Interim results.

Pre-Close Statement

Current trading

For the first eleven weeks of the second quarter (to 13 January 2013), like-for-like sales increased by 8.0%. Total sales increased by 11.3%. In the year to date (24 weeks to 13 January 2013), like-for-like sales increased by 7.6% and total sales increased by 11.2%.

We currently expect the operating margin for the half year ending 27 January 2013 to be around 8.2%, approximately 1.1% lower than the last financial year, due to slightly higher than expected increases in costs in areas such as tax, utilities, labour and bar and food supplies, combined with increased marketing costs.

We anticipate the Company's corporation tax rate for this financial year to be around 27.5%.