Wetherspoon reveals drop in half year operating margin

Pub chain Wetherspoon saw its operating margin for the half year ended January 27th come in around 1.1 per cent lower than the previous year at 8.2 per cent.

Pub chain Wetherspoon saw its operating margin for the half year ended January 27th come in around 1.1 per cent lower than the previous year at 8.2 per cent.

This was as a result of slightly higher than expected increases in costs in areas such as tax, utilities, labour and bar and food supplies, combined with increased marketing costs.

The group's figures were otherwise moving in the right direction, with year-to-date (24 weeks to January 13th) like-for-like sales up 7.6% and total sale up 11.2%.

In the first 11 weeks of the second quarter, to January 13th, like-for-like sales rose 8.0%, while total sales climbed 11.3%.

In the financial year to date the company has opened five new pubs and currently has 12 sites under development.

"Our sales, profit and cash flow continue to be resilient, in spite of the continuing taxation and regulation burden on the pub industry and the on-going pressure on consumer's disposable incomes," the group said.

"The board expects a reasonable outcome for the current financial year."

The share price fell 2.35% to 519.50p by 09:15.

NR

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021