Record sales of ale and cider boost Wetherspoon profits
Record sales of ales and ciders at pub group JD Wetherspoon helped push up pre-tax profits to 6.3% to £76.9m, the company said.
Like for like sales grew 5.8% for the 52 weeks to 28 July 2013, while the group's total sales were up 7.0% to £1.28b.
Commenting on the preliminary results statement, Wetherspoon chairman Tim Martin (pictured) once again took the opportunity to attack the VAT rate applied to hospitality businesses.
"I am pleased to report another year of progress, with record sales, profit and earnings per share, despite having paid £551.5m in taxes during the year (equivalent to £632,000 per pub) and rewarding staff with £28.6m of bonuses. Our post-tax profit increased by £7.9m, yet our taxes paid increased by £32.2m," he said.
"It is unsustainable to have far higher taxes for the pub industry than those for supermarkets. Already, 10,000 pubs have closed and many others are suffering, through insufficient investment. In particular, there should be VAT equality for pubs, restaurants and supermarkets."
Wetherspoon is among a number of pub and restaurant business that will support campaigner Jacques Borel's VAT Club on Tax Parity Day, on 25 September, when it will offer a one-day 7.5% reduction in its prices, to publicise the inequality.
"In the six weeks to 8 September 2013, like-for-like sales increased by 3.6%. In the last fortnight, like-for-like sales were 2.5% - and this level may be an indicator for future sales growth. Overall, the company is aiming for a reasonable outcome in the current financial year."
