JD Wetherspoon enjoys Olympic performance

Pub group JD Wetherspoon said it had received a boost from the Olympics but added it wouldn't be able to maintain sales at that level for the rest of the year.

Pub group JD Wetherspoon said it had received a boost from the Olympics but added it wouldn't be able to maintain sales at that level for the rest of the year.

In the three months to 28th October - the company's first quarter - like-for-like sales increased by 7.1% and total sales increased by 11.1%.

The firm saw its operating margin drop to 8.6%, around 0.4% lower than the last financial year.

This was due to increased costs in areas such as tax, utilities, labour and bar and food supplies, combined with increased marketing costs, the firm said.

The company opened two new pubs in the quarter and currently has eight pubs under development.

It said it was on track to open around 25 pubs in the current financial year.

As ever, Wetherspoons went on the offensive against the government over taxes and the treatment of pubs compared with supermarkets.

"The main challenges for the pub industry are the VAT disparity between supermarkets and pubs, combined with the continuing imposition of stealth taxes (which apply to pubs but not to supermarkets) such as the late-night levy and the increase in fruit/ slot machine taxes," it said.

"In spite of these challenges our sales, profit and cash flow remain resilient and the board continues to aim for a reasonable outcome in the current financial year."

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023