JD Wetherspoon has revealed its preliminary results. Its full-year pre-tax profits rose from £80.6m to £102.8m this year, a 27.5% increase, and since the end of the financial year (30 July) like-for-like sales had increased by 6.1%. However, despite the positive figures, Chairman Tim Martin took the opportunity to warn European politicians that they had to ‘wise up’ on Brexit if they didn’t want to severely damage the economy of the EU.
He said, “Most ‘PLCs’ are expected to comment, in their results’ statements, on the UK’s prospects outside of the EU and on the likely impact on their individual companies.
“It is my view that the main risk from the current Brexit negotiations is not to Wetherspoon, but to our excellent EU suppliers – and to EU economies.
“As a result of their current posturing and threats, EU negotiators are inevitably encouraging importers like Wetherspoon to look elsewhere for supplies. This process is unlikely to have adverse effects on the UK economy, as companies will be able to switch to suppliers representing the 93% of the world’s population which is not in the EU, but this evolution will eventually be highly damaging to the economy of the EU.”
“Wetherspoon is extremely confident that it can switch from EU suppliers, if required, although we would be very reluctant to initiate such actions.
He continued, “It is my view that Juncker, Barnier, Selmayr, Verhofstadt and others need to take a wise-up pill in order to avoid causing further economic damage to struggling economies like Greece, Portugal, Spain and Italy – where youth unemployment, in particular, is at epidemic levels.
Although Martin revealed that they currently expected a trading outcome for the current financial year to be in line with expectations, he also said, “Since the year end, Wetherspoon’s like-for-like sales have continued to be encouraging and have increased by 6.1%. This is a positive start, but is for a few weeks only – and is very unlikely to continue for the rest of the year. Comparisons will become more stretching – and sales, which were very strong in the summer holidays, are likely to return to more modest levels. It is anticipated that like-for-like sales of around 3–4% will be required in order to match last year’s profit before tax. We will provide updates as we progress through the year. “
JD Wetherspoon currently have 66 pubs in Scotland including The Kirky Puffer, Kirkintilloch, The Alexander Bain, Wick and The Justice Mill in Aberdeen. However the number has dropped from last year when it had 71.
The figures in summary:-
- Revenue £1,660.8m (2016: £1,595.2m)
- Like-for-like sales
- Profit before tax £102.8m (2016: £80.6m)
- Operating profit £128.5m (2016: £109.7m)
- Earnings per share (including shares held in trust)69.2p (2016: 48.3p)
- Free cash flow per share 97.0p (2016: 76.7p)
- Full year dividend 12.0p (2016: 12.0p)After exceptional items*
- Profit before tax £76.4m (2016: £66.0m)
- Operating profit £128.5m (2016: £109.7m)
