Like-for-like sales down at JD Wetherspoon

5th May 2010, 11:24am

Like-for-like sales at national pub chain JD Wetherspoon are marginally down by 0.8% but it’s a better story for total company sales, which increased 3.6%.

In the year-to-date (39 weeks to 25th April 2010), like-for-like sales decreased by 0.2% and overall Company sales increased by 4.0%. 

In a statement popular pub group said: "The financial year so far has seen the opening of 26 new pubs and the closure of two sites. Approximately 45 new sites are now expected to open this financial year. The Company is in a sound financial position, with net debt to EBITDA currently at approximately 2.8 times." 

Wetherspoon also made reference to a cash payment of £14.9m it recently received for a claim against overpayment of VAT on amusement machines. 

"This potential income is still contingent on the final outcome of that legal process. A further update will be made, when appropriate," read the statement. 

Concluding the statement, the company said: "Our sales, profit and cashflow continue to be resilient, in spite of price increases in January (in respect of higher VAT) and at the end of March (in respect of a punitive increase in excise duty for pubs). The performance of our pubs which opened within the last two years is encouraging; we continue to believe there are substantial opportunities for us to acquire sites at reasonable prices. We therefore remain confident about the company's prospects for this financial year.

"However, we now feel slightly more cautious about the outlook for the next financial year, as a result of the annualised effect of recent tax and duty increases, and higher interest charges, combined with the risk of more subdued consumer expenditure."

Related Articles:

• 09 Mar 2012 - JD Wetherspoon pub group experiences 2.1% rise in like for like sales
• 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 Oct 2010 - JD Wetherspoon loses finance director and chief operating officer
• 10 Sep 2010 - JD Wetherspoon celebrates record results as it warns government on taxes
• 14 Jul 2010 - Like-for-like sales increase at JD Wetherspoon

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