Wetherspoon sales slow

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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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."

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.