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StockMarketWire.com

Pub group JD Wetherspoon's revnues rose 9% to £744.4m in the 26 weeks to 25 january with like for like sales up 4.5%.

Operating profits fell by 1.1% to £55.1m and profits before tax and exceptional items were 0.9% lower at £37.5m.

Diluted earnings per share before exceptional items rose by 2.3% to 22.6p and the dividend is maintained at 4.0p per share.

Pre-tax profits after exceptional items rose by 4.1% to £37.5m.

Chairman Tim Martin said: "The first half of the financial year resulted in a reasonable sales performance and free cash flow, although our profit was under pressure from areas which included increased competition from supermarkets and increased pay and bonuses for pub staff.

"As previously highlighted, the biggest danger to the pub industry is the continuing tax disparity between supermarkets and pubs. Thanks mainly to the work of Jacques Borel's VAT Club, there is a growing realisation among politicians, the media and the public that pubs are overtaxed and that a level tax playing field will create more jobs and taxes for the country. "In the six weeks to 8 March 2015, like-for-like sales increased by 1.6%, with total sales increasing by 5.6%."





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Still watching, come on George over to you. :0)

Not sure knocking a penny off a pint helps them much, but nice bounce so far today.

Wetherspoons have just exchanged contracts on the White Hart Downham Market and I look forward to participating in a beverage or two along with a curry on Thursday evenings!

Don't forget 2p off a pint of cider CC. Should keep the teenagers happy!

True Harry LOL!

My local pub is like a petrol company - they pass on the rises straight away, but any reductions.......

Still watching, maybe should have gone short. When or if it decides to bounce plenty of scope to ride it back up.

Interim Management Statement

Current trading

For the 13 weeks to 26 April 2015, like-for-like sales increased by 1.7%, and total sales increased by 5.8%. In the year to date (39 weeks to 26 April 2015), like-for-like sales increased by 3.6% and total sales increased by 7.9%.

The operating margin in the 13 weeks to 26 April 2015 was 7.5%, compared with 8.0% in the same period last year. At this stage we expect the full-year margin to be in the region of 7.3% to 7.7%.


Property

The Company has opened 20 new pubs and disposed of 4 since the start of the financial year. We have 12 pubs under development and, in line with our last update, intend to open around 30 pubs in the current financial year. It is our present intention to open a similar number of pubs in the following financial year.


Financial position

The company has bought back 1,621,163 shares, at a total cost of £12.5 million, since the start of the financial year.

There have been no other significant changes in the Company's overall financial position since the publication of the interim accounts on 13 March 2015.


Outlook

The Late Night Levy, combined with higher business rates per pint and a huge VAT disparity, mean that pubs continue to trade at a great disadvantage to supermarkets.

As previously stated, the second half of the last financial year was strong, which will make it difficult to improve on that performance in the current year. Our expectations for this full financial year remain unchanged.

For the next financial year, there are a number of factors which are likely to influence our trading performance, although they are difficult to quantify at this stage. Positive aspects include an increase in our pub numbers, stable utility prices and slightly lower interest rates. Other trends include increased competition from supermarkets and restaurant groups, together with additional staff and repair costs. We will provide updates, when appropriate, on these, as next year progresses.

PRE-CLOSE STATEMENT

StockMarketWire.com
Pub group JD Wetherspoon's like-for-like sales increased by 2.4% and total sales increased by 6.1 in the 13 weeks to 25 October.

The group says sales have been slightly higher in the last 6 weeks, which has coincided with the Rugby World Cup.

The operating margin in the 13 weeks to 25 October was 6.2%, compared with 7.7% in the same 13 weeks last year. The lower margin was due to increases in the starting rates for hourly paid staff in October 2014 and August 2015, which totalled approximately 13%.

The company has opened 3 new pubs since the start of the financial year and has sold 1. It intends to open approximately 15 pubs in the current financial year.

It adds: "Following a review of our pubs, as previously reported, the company offered 20 leasehold pubs for sale and is now considering a small number of freehold disposals in the course of the financial year."

Peel Hunt cuts JD Wetherspoon to sell from hold, target cut from 711p to 700p.

along with other companies, JDW doesn't like paying "living wage" ...... hard cheese! i thoroughly concur with the argument that it should not be for the taxpayer to subsidise what are effectively underpaid employees

JD Wetherspoon said like-for-like sales improved in the first 12 weeks of the second quarter but that operating margins would be 1.1% lower than the same period last year due to increased labour costs. "Our current view is profits for this year are likely to be towards the lower end of analysts' expectations," said chairman Tim Martin.

The local JDW I use you never see the same staff the staff turnover is incredible.

INTERIM RESULTS

(For the 26 weeks ended 24 January 2016)


FINANCIAL HIGHLIGHTS

Before exceptional items:

Revenue £790.3m (2015: £744.4m) +6.2%

Like-for-like sales +2.9%

Operating profit £49.4m (2015: £55.4m) -10.8%

Profit before tax £36.0m (2015: £37.5m)
Underlying earnings per share before a property gain and the benefits of a deferred tax credit 19.1p (2015: 22.9p)
-3.9%
-16.6%
Interim dividend 4.0p (2015: 4.0p)
Maintained

After exceptional items


Profit before tax £36.6m (2015: £37.5m) -2.2%

It's ages since I've been in a Spoons but called in at the Rocket on Tuesday near Fulham, and we were very surprised to hear that it is up for sale, it's right on the river and tables were reserved for the evening session (and that's in the winter) must be heaving in the summer.

I know that they are off loading duplicate sites but would have thought this one to be a prime site and gold mine.

Do you know it Skinny or anyone else?

Not been there, but must admit that the inside looks nicer than the outside from their website. Might be that the running costs (rates etc) are too high to justify keeping it. The Railway just down the road is a JDW and looks nicer, imo.

We did note the Railway (but did not go inside) but after going inside the Rocket and taking note of the site frankly we were and still are gobsmacked at it being up for sale.

As you say running costs and rates may be to high, I wonder if the Youngs pub at Blackfriars is also up for sale as well as that has a similar appeal, I'll have a dig around.

One thing I did think is the possible future flood risk, with Spoons selling at the top of the market to capitalise as well.

StockMarketWire.com
JD Wetherspoon's like-for-like sales increased by 4.0% and total sales increased by 3.8% in the 11 weeks to 10 July.

In the year to date (50 weeks to 10 July) like-for-like sales increased by 3.4% and total sales increased by 5.5%.

The full-year operating margin before exceptional items and before a £3.8m gain on property is expected to be around 6.8%, compared to 7.4% last year.

The company has opened 13 new pubs since the start of the financial year, has sold 29 and has closed 11. It expects to open 16 new pubs in this financial year. There will be around £13m of exceptional, non-cash losses in this financial year, which are mainly associated with pub disposals and closures.

The company remains in a sound financial position. Net debt at the end of this financial year is currently expected to be around £670m.

The company has bought back 5.7m shares, at a total cost of £39m, since the start of the financial year.

Chairman Tim Martin, said: "As most people will be aware, an unusual number of forecasts for the UK economy have been made in the run-up to, and the aftermath of, the referendum. Most of the forecasts from representatives of institutions which are normally responsible for financial stability were extremely negative.

"For example, the International Monetary Fund`s Christine Lagarde said in May that a leave vote in the referendum would be "pretty bad to very, very bad."

"An IMF report additionally said that a leave vote would have a 'negative and substantial effect'.

"Similar comments were made by the Bank of England Governor Mark Carney. HM Treasury also warned that Brexit would cost the average household about £4,000 per annum in the future. The CBI, Goldman Sachs, Morgan Stanley, PWC and many FTSE 100 CEOs, among others, supported this negative view.

"The Chancellor of the Exchequer George Osborne repeatedly warned that mortgage and interest rates were likely to rise in the event of a leave vote and threatened an emergency budget to increase taxes and to reduce public expenditure.

"Osborne`s stance was supported by Prime Minister David Cameron, who also forecast an increased likelihood of war and genocide.

"Unbeknown to most voters, one of the 'architects' of the Remain campaign, which devised the above approach, was Peter Mandelson ('How the struggle for Europe was lost', Peter Mandelson, Financial Times, 2 July), who worked closely with Cameron, Osborne and others

"In my opinion, the above individuals and organisations are either dishonest, or they have a poor understanding of economics, since democracy and prosperity are closely linked and the EU is clearly undemocratic. By voting to restore democracy in the UK, I believe the UK's economic prospects will improve, although it is quite possible that the unprecedented and irresponsible doom-mongering, outlined above, may lead to some kind of slowdown.

"In spite of the dire warnings above, Wetherspoon trade strengthened slightly in recent weeks and we consequently anticipate a modestly improved outcome for this financial year. Caution should be exercised in extrapolating current levels of sales growth for future years."