‘Business is on the up’ says Wetherspoon

27th May 2009, 2:29pm

Founder and chairman of pub group JD Wetherspoon, Tim Martin, has said he believes drinkers will return to British pubs as they begin to feel the benefits of lower interest rates and falling energy bills.

Speaking to Reuters, Martin said that the outlook for the national pub chain remains positive and that he's increasingly confident about the company's full-year prospects.

He said that he doesn't think the trading market has deteriorated this month adding that buying from panicky and distressed sellers is not the right thing for pub companies to do.

"Taking advantage of distressed sellers is fraught with perils and alligator swamps so you can turn into a distressed buyer if you buy the wrong thing. Having said that, there is no question that if, in five years, we could open two or three hundred sites at low rents or low freehold costs, it would be hugely beneficial."

Martin told Reuters that buying from competitors such as Punch Taverns and Enterprise Inns isn't easy: "Everything is for sale but sometimes I have the feeling that some of our competitors would rather sell to anyone rather than us so that can make life difficult."

Over the next two years, the Wetherspoon chairman said one of the company's main priorities is to generate cash flow and reduce debt.

"I think it (the recession) probably plays to our strengths and it plays to the strengths of a lot of well-run companies. Less well-run companies come under much more pressure in this type of environment," he said.

Related Articles:

• 14 Sep 2009 - JD Wetherspoon introduces new drinks across all pubs
• 11 Sep 2009 - JD Wetherspoon reports record sales
• 16 Jun 2009 - Punch Taverns remain 'very cautious'

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