JDW sales back on track

Sales at J D Wetherspoon plc (JDW) have bounced back after a tricky period for the group, as the Tim Martin-led business shares its Q3 trading update.

Like-for-like sales increased by 9.1% in the 13 weeks to 30 April 2023, compared to the same period in the last full financial year before the pandemic, which ended on 28 July 2019. Year-to-date sales increased by 6.4% compared to the same year.

Sales during Easter were the highest ever for the company, with the business predicting that sales in the current financial year are likely to be a record.

The first May bank holiday weekend was particularly strong, including the busiest ever Saturday seen at JDW sites.

"Lockdowns and associated restrictions have had more profound and longer-lasting consequences than most economists, politicians and commentators predicted," says Martin. "Sales in the last quarter have continued their positive momentum, although inflation, especially in labour, energy and food costs, remains a more intractable issue.

"In order to bear down on inflation, political parties should encourage free enterprise, rather than a reliance on additional regulations. A lack of understanding, among some senior politicians, about the need to encourage a successful free market economy, presents a real threat to the future prosperity of the country.

"The company expects profits in the current financial year to be towards the top of market expectations."

In the last quarter, the company opened one pub and sold, closed or surrendered to the landlord at 10 pubs (21 pubs year-to-date). There was a net cash inflow of £4.7m from the 21 disposals. A total of 30 trading pubs remain on the market, or are under offer. The company currently has a trading estate of 834 sites.

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