Wetherspoon’s interim results for the 26 weeks ended 27 January 2013, saw like-for-like sales increased by 6.9%, with total sales, including new pubs, increasing by 10.0% to £626.4 million (2012: £569.4 million). Like-for-like bar sales increased by 4.1% (2012: 3.4%), like-for-like food sales were up 13.4% (2012: 0.1%) and machine sales increased by 4.4% (2012: decreased by 3.8%).
Operating profit before exceptional items decreased by 2.0% to £52.1 million (2012: £53.1 million) and after exceptional items increased by 3.1% to £52.1 million (2012: £50.5 million). The operating margin before exceptional items was lower, at 8.3% (2012: 9.3%). As previously highlighted, there was considerable inflation in costs during the period. The largest increase was £23.4 million in taxation, with further increases in labour costs, utilities and bar and food supplies. The operating margin after exceptional items was 8.3% (2012: 8.9%).
Profit before tax and exceptional items decreased by 2.7% to £34.8 million (2012: £35.8 million) and after exceptional items increased by 4.9% to £34.8 million (2012: £33.2 million). Earnings per share before exceptional items increased by 3.0% to 20.8p (2012: 20.2p), despite the fall in adjusted earnings, owing to fewer shares in issue and a reduced corporation tax charge. Basic earnings per share after exceptional items increased by 13.7% to 20.8p (2012: 18.3p).
After commenting on the dangers of the VAT disparity between supermarkets and pubs, and the continuing imposition of stealth taxes, Tim Martin, Chairman of Wetherspoon’s, said:
“Taxation and input costs will continue to rise, but, overall, the company continues to aim for a reasonable outcome in the current financial year.”