24 July 2013
JD WETHERSPOON PLC
PRE-CLOSE STATEMENT
JD Wetherspoon plc ('JD Wetherspoon' or the 'Company') announces its pre-close statement for the period up to 23 July 2013, incorporating the 11 week period to 14 July 2013.
Current trading
For the 11 weeks to 14 July 2013, like-for-like sales increased by 3.5% and total sales increased by 6.2% - a better than expected performance. In the year to date (50 weeks to 14 July 2013), like-for-like sales increased by 6.0%, and total sales increased by 9.2%.
The operating margin was 9.5% in the 11 weeks to 14 July 2013, including some one-off benefits, and 8.7% in the year-to-date (50 weeks to 14 July 2013). We view the year-to-date margin as a possible indicator for the future, if we were to achieve reasonable sales growth.
Property
The Company has opened 29 new pubs and sold three since the start of the financial year. In our final results announcement, we intend to provide an update on any impairment and onerous lease provisions. It is our present intention to open around 30 pubs in the following financial year.
Financial position
The Company remains in a sound financial position.
Outlook
As previously indicated, the company warmly welcomes the reduction in beer duty announced in the March budget (but overall excise duty increased). However, the late night levy, machine gaming duty and business rates taxes have increased, as well as pension costs (see note 6). Continued progress in sales will be required in order to overcome these costs.The biggest dangers to the pub industry are the VAT disparity between supermarkets and pubs and the continuing imposition of stealth taxes.
We are now on track to achieve a slightly better outcome (before any exceptional items) for the current financial year than previously anticipated.
Enquiries:
John Hutson, Chief Executive |
01923 477 777 |
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Kirk Davis, Finance Director |
01923 477 777 |
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Eddie Gershon, Company Spokesman |
0208 352 5012/07956 392234 |
Notes to editors
1. JD Wetherspoon owns and operates pubs throughout the UK. The Company aims to provide customers with good-quality food and drink, served by well-trained and friendly staff, at reasonable prices. The pubs are individually designed, and the Company aims to maintain them in excellent condition.
2. Visit our website: www.jdwetherspoon.co.uk
3. This announcement has been prepared solely to provide additional information to the shareholders of JD Wetherspoon, in order to meet the requirements of the FCA's Disclosure and Transparency Rules. It should not be relied on by any other party, for other purposes. Forward-looking statements have been made by the directors in good faith, using information available up until the date on which they approved this statement. Forward-looking statements should be regarded with caution, because of the inherent uncertainties in economic trends and business risks.
4. The current financial year comprises 52 trading weeks to 28 July 2013.
5. The next trading update is expected to be the full-year results, due to be issued on 13 September 2013.
6. In the next financial year, the Company is likely to incur further tax and regulation increases of excise duty (c£2.5m), business rates (c£2m), machine gaming duty (c£2m) and increased pension contributions (c£1.5m).
