JD Wetherspoon plc announced its Interim Management Statement for the period up to 7 May 2013, incorporating the 13 week period to 28 April 2013.
Current trading
For the 13 weeks to 28 April 2013, like-for-like sales increased by 6.3% and total sales increased by 9.3%. In the year to date (39 weeks to 28 April 2013), like-for-like sales increased by 6.7%, and total sales increased by 10.1%. Lower like-for-like sales are expected in the final quarter of this financial year than for the year so far, given last year’s final quarter like-for-like sales of 6.1%.
The operating margin, in the 13 weeks to 28 April 2013, was 8.5%, compared with 8.3% in the first half of the current financial year. In the year-to-date (39 weeks to 28 April 2013) the operating margin was 8.4%.
Property
The Company has opened 16 new pubs, sold two since the start of the financial year, and has several sites under development and, in line with the last update, intends to open 30 pubs in the current financial year. It is also the intention to open approximately 20 to 25 pubs in the following financial year.
Outlook
As previously indicated, the biggest dangers to the pub industry are the VAT disparity between supermarkets and pubs and the continuing imposition of stealth taxes such as the late-night levy and increased fruit/slot machine taxes. However, the company welcomes the recent abolition of the duty escalator and the reduction in beer duty, and hopes that this indicates a greater appreciation from politicians of the important economic and social role played by pubs. Notwithstanding the recent changes, Wetherspoon’s anticipates that taxation and input costs will continue to rise.
The company continues to aim for a reasonable outcome in the current financial year.
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