Revenue halved at Wetherspoon

JD Wetherspoon has posted its financial results for the 26 weeks ended 24 January 2021, making hard reading for the Tim Martin-led business. 

Much like the rest of the pub and bar sector, Wetherspoon's results show just how heavily the Covid-19 pandemic has hit the bottom line. 

The pub company posted a revenue £431.1m in its half-year figures, compared to £933m in 2020. Overall, its like-for-like sales decreased by 53.9%.

Like-for-like bar sales decreased by 57.3%, food by 48.4% and fruit/slot machines by 53.7%. Its like-for-like hotel room sales decreased by 51.8%.

"Wetherspoon and its employees, along with the hospitality industry, have worked very hard to comply with ever-changing government guidelines," says Martin. "It is disappointing that so many regulations, implemented at tremendous cost to the nation, appear to have had no real basis in common sense or science - for example, curfews, substantial meals with drinks and masks for bathroom visits.

"The future of the industry, and of the UK economy, depends on a consistent set of sensible policies, and the ending of lockdowns and tier systems, which have created economic and social mayhem and colossal debts, with no apparent health benefits."

Pre-IFRS 16 operating profit decreased to -£20.7m (£76.6m in 2020). Loss before tax and exceptional items is £46.2m, compared to a £57.9m profit in 2020.

Total capital investment was £19m in the period, with £1.4m as spent on freehold reversions of properties where Wetherspoon was the tenant, £7.1m on new pub openings and extensions and £9.6m on existing pubs.

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