Published On: Wed, Jan 20th, 2016

Sales Up 6% At Wetherspoons Whilst Margin Hit By Staff Wages

Wetherspoon Pub

Shares in JD Wetherspoon Plc have dropped by 10% in the last 3 months.

Today JD Wetherspoon Plc (LON:JDW) released an update on current trading during Q2 prior to entering its close period for its interim results, for the six months ending 24 January 2016, which are expected to be announced on 11 March 2016.

The company saw like for like sales increase by 3.3% and total sales increase by 6.3% during the first 12 weeks of the second quarter (to 17 January 2016). In the 25 weeks to 17 January 2016, like-for-like sales increased by 2.8% and total sales increased by 6.1%.

Chairman of JD Wetherspoon, Tim Martin, said:

“Like-for-like sales have improved in the second quarter so far. However, as indicated in our November trading update, increased labour costs will be an important factor in the outcome for this financial year. Our current view is profits for this year are likely to be towards the lower end of analysts’ expectations.”

The company opened 5 new pubs since the start of the financial year whilst it has sold two. During the current financial year JD Wetherspoon said it plans to open 10 to 15 pubs.

Wetherspoons said operating margin (before any exceptional items) for the half year ending 24 January 2016 is to be around 6.3%, a drop of 1.1% compared to the same period last year which they said highlights the increases in rates for hourly paid staff.

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