The meltdown in consumer spending has not taken the fizz out of pub giant JD Wetherspoon, which posted a double-figure revenue hike in the run-up to Christmas.
Sales rose 11.3% in the 11 weeks to January 13, the firm said, or 8% in like-for-like terms, prompting directors to forecast a “reasonable” financial outcome during the current financial year.
They say the group which operates more than 800 pubs across the UK, including many sites in Tayside and Fife and the Lloyds No 1 chain is trading resiliently “in spite of the continuing taxation and regulation burden on the pub industry” and pressure on disposable incomes.
In a pre-close update ahead of the spring publication of interim results, Wetherspoon revealed that it anticipates paying corporation tax of around 27.5% in the year.
It also said its operating margin would likely fall by around 1.1% on last year, to 8.2%, because of higher-than-expected increases in costs like tax, utilities, labour and bar and food supplies. The firm also increased its marketing spend.
The company, which recently revealed it had bought the former Jolly’s Hotel on Broughty Ferry’s Gray Street, said it planned to open 20 new pubs by the end of July.
A further five have already been opened, while 12 sites are under development.
business@thecourier.co.uk