JD Wetherspoon improves outlook for the year after sales boost
JD Wetherspoon has improved its outlook for the year after reporting a better than expected financial performance for the past three months.
The pub operator said in an update on trading for the 11 week period to 14 July 2013 that it was now on track to achieve a better outcome for the financial year than previously predicted thanks to improved sales.
Like-for-like sales in the period were up 3.5%, while total sales grew 6.2%. In the financial year to date (50 weeks to 14 July 2013) like for like sales were up 6% and total sales 9.2%.
The operating margin in the year to date was 8.7%, which JD Wetherspoon said was an indicator of reasonable future sales growth.
It has opened 29 new pubs in the past 50 weeks and sold three. There are plans for 30 more openings in the next year.
The company said that the reduction in beer duty had been positive, but that it was still concerned by the disparity in VAT between supermarkets and pubs. It added that the late night levy, machine gaming duty and business rates taxes had all increased too.
