Pubs group JD Wetherspoon served up a 1.1% increase in first quarter like for like sales as consumers continue to tighten their purse strings.
The group, which owns 823 pubs, said total sales in the 13 weeks to 23 October 2011 increased by 7.3%. The operating margin was 9.3%, down around 0.2% from the same period last year.
"As has been widely reported, UK consumers' incomes remain under pressure," Wetherspoon said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Along with many businesses, the company Watford based firm continues to experience increases in costs, including utilities, labour and bar and food supplies. Wetherspoon said the main cost increases relate to continuing significant increases in taxation and regulation.
However the group is still "aiming for a reasonable outcome in the current financial year."
"Our sales, profit and cash flow have been resilient. The main challenges for the Ccmpany, in the coming months, will be the continuing cost increases resulting from government legislation, including the carbon tax, the proposed late-night levy and further increases to excise duty."
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
