JD Wetherspoon cuts back on expenditure

20th January 2009, 10:16am

Pub company JD Wetherspoon has today announced it will scale back the amount of money it spends on new openings and will cancel future dividend payments.

Despite this the company, which now has 714 pubs across the UK said it "…remains in a sound financial position."

In the 12 weeks to the 18th January 2009, like-for-like sales increased by 2.6%.

Like-for-like sales over the Christmas period (1 December 2008 to 11 January 2009) were up 3.7%.

In a statement, JD Wetherspoon said: "In the light of current uncertainty in the credit markets, the Board has decided to reduce substantially capital expenditure on new openings and to cancel future dividend payments in order to ensure the repayment of the private placement from cash flow and existing facilities.

"In normal conditions, a refinancing of the private placement on attractive terms could be relied upon, given our financial performance. However, in the present economic climate, a refinancing cannot be taken for granted and the Board therefore feels that the measures described above are prudent in the circumstances."

The pub company deemed its recent 99p pint promotion an initial success with sales in the last two weeks to the 18th January 2009 up 6.4%.

JD Wetherspoon concluded its positive trading statement by saying it hopes to open a further 12 pubs by July 2009 but that development costs would be substantially lower than in previous years.

Related Articles:

• 04 May 2011 - Pub chain JD Wetherspoon achieves 2.4% rise in like for like sales
• 11 Mar 2011 - Sales and profits at JD Wetherspoon are at record levels, says Chairman Tim Martin
• 14 Sep 2009 - JD Wetherspoon introduces new drinks across all pubs
• 11 Sep 2009 - JD Wetherspoon reports record sales
• 07 May 2009 - Best of both worlds at Wetherspoon pubs
• 06 May 2009 - JD Wetherspoon announces positive trading
• 01 May 2009 - Wetherspoon only pub listed in Britain's Top Employers

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