Wetherspoon profits tumble on rising costs – Daily Business
1 min read
Wetherspoon’s revenue rose but profits fell (pic: Terry Murden)
Pubs group J D Wetherspoon issued a warning to the market after increased costs including wages, repairs, and business rates saw half-year profits tumble by almost a third.
Pre-tax profit plunged 31.9% to £22.4 million and operating profit by 18.4% for the 26 weeks ended 25 January despite a 5.7% increase in revenue to £1.09 billion. Like-for-like sales were up 4.8%.
The company declared an unchanged interim dividend of 4p per share. Like-for-like sales in the seven weeks to 15 March increased by 2.6%, outperforming the industry average.
Chairman Tim Martin, said: “There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry.
“This may result in profits that are slightly below current market expectations. The forecast for year-end net debt remains unchanged.”
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