The proposed £1 million refurbishment and reopening of Jolly’s Hotel in Broughty Ferry remains months away at the very least, the site’s new owner has conceded.
JD Wetherspoon has owned the landmark property since late last year after a long and complicated sales process which initially saw the national pub chain walk away from negotiations for the pub.
Wetherspoon’s eventually returned to the fray after the asking price for Jolly’s dropped to £950,000, and the operator completed a deal to buy the property in December.
Despite two years having passed since the popular pub closed its doors for the last time, Wetherspoon’s were yesterday unable to say when redevelopment works would begin or when the venue would reopen.
“At present there are no on-site or open dates,” JD Wetherspoon spokesman Eddie Gershon said.
“Wetherspoon has numerous sites which are to be developed into pubs and it is a case of fitting each one into the development schedule.
“The site at Broughty Ferry will definitely be redeveloped and open, but as yet no dates.”
The update came as the company reported a better than expected trading performance for the 11 weeks to July 23.
Total sales increased by 6.2% in the period. Like-for-like revenues were 3.5% ahead.
In the 50 weeks in the year-to-date, Wetherspoon’s said it had seen a 9.2% uplift in total sales and a 6% rise on a like-for-like basis. Operating margin was 8.7% ahead overall.
The firm which has opened 29 new pubs, including an outlet in Blairgowrie, and sold off three others in the year so far expects to add a further 30 pubs to its operational estate in the next financial year.
In a pre-close update the firm said drink sales had been buoyed by the cut in beer duty announced in the Budget in March.
However, despite highlighting other strains on its margins the firm said it was better positioned than had been expected.
“The late-night levy, machine gaming duty and business rates taxes have increased, as well as pension costs,” the firm said in its statement.
“Continued progress in sales will be required in order to overcome these costs.
“The biggest dangers to the pub industry are the VAT disparity between supermarkets and pubs and the continuing imposition of stealth taxes.
“We are now on track to achieve a slightly better outcome (before any exceptional items) for the current financial year than previously anticipated,” the firm added.
Shares in Wetherspoon’s closed 12.3% higher, up 82p to 750p.