Wetherspoon (JD) PLC Trading Statement (9719D)
May 03 2017 - 2:00AM
UK Regulatory
TIDMJDW
RNS Number : 9719D
Wetherspoon (JD) PLC
02 May 2017
03 May 2017
J D WETHERSPOON PLC
Q3 Trading Update
J D Wetherspoon plc ('J D Wetherspoon' or 'the Company'),
announces its Q3 trading update for the 13-week period up to 23
April 2017.
Current trading
For the 13 weeks to 23 April 2017 like-for-like sales increased
by 4.0% and total sales increased by 1.3%. Year-to-date
like-for-like sales have increased by 3.5% and total sales have
increased by 1.4%.
The operating margin in the 13 weeks to 23 April 2017 was 7.3%,
compared with 6.4% in the same 13 weeks last year. The year-to-date
operating margin was 7.8% compared with 6.3% last year.
Property
The Company has opened 9 pubs since the start of the financial
year and has sold 36. In addition, 3 pubs have been closed and are
being marketed. We expect to open one further pub in this financial
year. About GBP16m of exceptional, non-cash losses are expected in
this financial year, mainly as a result of the disposal
programme.
Financial position
The Company remains in a sound financial position. Net debt at
the end of this financial year is now expected to be about GBP70m
higher than the level at the last financial year end, mainly as a
result of expenditure on freehold reversions (pubs where the
Company was previously the tenant) and share buybacks.
Outlook
The chairman of JD Wetherspoon, Tim Martin, said:
"A number of individuals and organisations, which previously
supported UK membership of the euro and its disastrous predecessor
the ERM, and who recently promoted the erroneous view of a severe
economic downturn in the immediate aftermath of a leave vote in the
referendum, are again offering the government advice.
"For example, Carolyn Fairbairn of the CBI has recently said
that 'leaving the negotiating table without a deal shouldn't be
Plan B, but Plan Z'. It is doubtful if Ms Fairbairn has ever been
involved in serious business negotiations herself, since this is
the same as a housebuyer saying to a seller, 'I must have your
house at any cost'. In this case the buyer will not pay the market
price, but will pay the maximum that the seller believes he can
afford.
"It is hard to believe that such foolhardy advice could emanate
from a business organisation.
"As many people have said, including many remain supporters, it
is essential to adopt an approach that stresses the UK's
willingness to trade on World Trade Organisation (WTO) terms,
possibly abolishing import tariffs unilaterally, which would lead
to substantial reductions in consumer prices- and increased living
standards.
"The current desperation of the CBI and others for a 'deal' is
only encouraging the absurd posturing of the unelected 'President'
Juncker and his acolytes, and creates an absurdly pessimistic
picture of the UK's position if a sensible deal is not
forthcoming.
"As EU businesses know, they will suffer acutely if UK companies
and consumers switch their allegiance to domestic or other non-EU
suppliers. The CBI should let those businesses make the case for a
free trade deal, rather than undermining the government's
negotiating position.
"As previously reported, the company expects significantly
higher costs in the second half of the financial year, mainly for
business rates, utility taxes, excise duty and labour. In view of
these costs and stronger sales comparisons, the company remains
cautious about the second half of the year.
"Nevertheless, as a result of better-than-expected year-to-date
sales, we currently anticipate a slightly improved trading outcome
for the current financial year, compared with our expectations at
the last update.
"As a result of these higher costs the company anticipates it
will require like-for-like sales of about 3 to 4% in our next
financial year to maintain profits at current levels."
Enquiries:
John Hutson Chief Executive Officer 01923 477777
Ben Whitley Finance Director 01923 477777
Eddie Gershon Company spokesman 07956 392234
Notes to editors
1. J D Wetherspoon owns and operates pubs throughout the UK. The
Company aims to provide customers with good-quality food and drink,
served by well-trained and friendly staff, at reasonable prices.
The pubs are individually designed, and the Company aims to
maintain them in excellent condition.
2. Visit our website: www.jdwetherspoon.com
3. This announcement has been prepared solely to provide
additional information to the shareholders of J D Wetherspoon, to
meet the requirements of the FCA's Disclosure and Transparency
Rules. It should not be relied on by any other party, for any other
purposes. Forward-looking statements have been made by the
directors in good faith, using information available up until the
date on which they approved this statement. Forward-looking
statements should be regarded with caution, because of the inherent
uncertainties in economic trends and business risks.
4. The annual report and financial statements 2016 has been
published on the Company's website on 9 September 2016.
5. The current financial year comprises 53 trading weeks to 30 July 2017.
6. The next trading update is expected to be the Company's statement on 12 July 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTKMGGKNZKGNZM
(END) Dow Jones Newswires
May 03, 2017 02:00 ET (06:00 GMT)
Wetherspoon ( J.d.) (LSE:JDW)
Historical Stock Chart
From Apr 2024 to May 2024
Wetherspoon ( J.d.) (LSE:JDW)
Historical Stock Chart
From May 2023 to May 2024