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JD Wetherspoon announces improved sales and margins

By James Russell: JD Wetherspoon announces improved sales and margins

May 5, 2011

JD Wetherspoon this morning announced its Interim Management Statement, incorporating the 13 weeks to 24 April 2011

For the 13 weeks to 24 April 2011, like for like sales increased by 2.4%.

Total Company sales over the same period increased by 7.4%.

In the year-to-date (39 weeks to 24 April 2011), like-for-like sales increased by 2.4% and overall Company sales increased by 7.6%.

The operating margin in the 13 weeks to 24 April was 9.6%, compared to 9.4% in the first half of the current financial year, and the year-to-date margin was 9.5%.

Property

The Company has opened 29 new pubs and closed 2 pubs since the start of the financial year. We have a number of sites under development and, in line with previous estimates, intend to open approximately 50 pubs in the current financial year.

Financial Position

The Company has bought back 7.6m shares at a total cost of £32.6m in the current financial year. There have been no other significant changes in the Company’s overall financial position since the publication of the interim accounts on 11 March 2011.

Outlook

As previously stated, the company, in common with many businesses, continues to be faced with rising costs for a wide range of goods and services, combined with a reduction in disposable income for many of its customers.

Sales and cashflow continue to be resilient and the performance of our recently opened pubs remains encouraging, which should enable the Company to produce a reasonable outcome in the current financial year.

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