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Tim Martin attacks the CBI over Brexit negotiations as JD Wetherspoon sales rise

03 May 2017 by
Tim Martin attacks the CBI over Brexit negotiations as JD Wetherspoon sales rise

Tim Martin, chairman of pub firm JD Wetherspoon, has attacked the CBI over its position regarding Brexit negotiations, as his company today revealed a 4% rise in like-for-like sales for the 13 weeks to 23 April 2017.

Total sales rose by 1.3% during the period, while year-to-date sales increased by 3.5% and total sales have increased by 1.4%, reflecting the fact that the business has sold 36 pubs since the start of the financial year. It has opened nine and three have closed and are being marketed.

The operating margin in the 13 weeks to 23 April 2017 was 7.3%, compared with 6.4% in the same 13 weeks last year. The year-to-date operating margin was 7.8% compared with 6.3% last year.

Offering his outlook, Martin, a strident campaigner for Brexit during the referendum, issued a withering attack on those who were attempting to steer the government away from leaving the negotiation table without securing a trade deal with the EU.

He said: "A number of individuals and organisations, which previously supported UK membership of the euro and its disastrous predecessor the ERM, and who recently promoted the erroneous view of a severe economic downturn in the immediate aftermath of a leave vote in the referendum, are again offering the government advice.

"For example, Carolyn Fairbairn of the CBI has recently said that ‘leaving the negotiating table without a deal shouldn't be Plan B, but Plan Z'. It is doubtful if Ms Fairbairn has ever been involved in serious business negotiations herself, since this is the same as a housebuyer saying to a seller, ‘I must have your house at any cost'. In this case the buyer will not pay the market price, but will pay the maximum that the seller believes he can afford.

"It is hard to believe that such foolhardy advice could emanate from a business organisation."

He added: "It is essential to adopt an approach that stresses the UK's willingness to trade on World Trade Organisation (WTO) terms, possibly abolishing import tariffs unilaterally, which would lead to substantial reductions in consumer prices and increased living standards.

"The current desperation of the CBI and others for a ‘deal' is only encouraging the absurd posturing of the unelected ‘President' Juncker and his acolytes, and creates an absurdly pessimistic picture of the UK's position if a sensible deal is not forthcoming.

"As EU businesses know, they will suffer acutely if UK companies and consumers switch their allegiance to domestic or other non-EU suppliers. The CBI should let those businesses make the case for a free trade deal, rather than undermining the government's negotiating position."

He added that JD Wetherspoon expected significantly higher costs in the second half of the financial year, blaming business rates, utility taxes, excise duty and labour and remained cautious about the second half of the year.

""Nevertheless, as a result of better-than-expected year-to-date sales, we currently anticipate a slightly improved trading outcome for the current financial year, compared with our expectations at the last update.

"As a result of these higher costs the company anticipates it will require like-for-like sales of about 3 to 4% in our next financial year to maintain profits at current levels," he said.

Late Easter does no favours for Britain's eating-out market >>

Restaurant groups report December like-for-like sales surge >>

J D Wetherspoon reports 3.2% increase in sales >>

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