Pub giant JD Wetherspoon (LSE: JDW) saw its interim profits halve, but a robust sales performance suggests a reasonable outcome for the year may be on the cards.
The FTSE 250 firm’s pretax profit tumbled to £26.1 million in the six months to January 28, down sharply from £57.0 million a year earlier. Property losses weighed heavily at £15.1 million, compared to £11.2 million previously. Shares in the budget pub chain fell 6.5% on Friday morning trading.
While costs climbed 5.1% to £923.3 million, Wetherspoon’s revenue jumped 8.2% to £991.0 million, offering a glimmer of hope. The company declared no interim dividend, unchanged from last year.
Significantly, like-for-like sales in the recent seven weeks to March 17 surged 5.8%, indicating sustained momentum. Chair Tim Martin expressed optimism, stating: “The company currently anticipates a reasonable outcome for the financial year, subject to our future sales performance.”
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