JD Wetherspoon Plc (JDW.L, JDWPF.PK, JDWPY.PK) Tuesday reported an increase in its first-quarter total sales and same-store sales, reflecting continued growth in food and bar sales. The British pub operator also said it remains in a sound financial position and confident of its prospects for the year ahead.
Terming the results as "an encouraging start to the year," Hertfordshire, UK-based company posted a like-for-like sales growth of 1.5% in its first quarter. This is an improvement on the 1.1% rise it posted for the first 5 weeks of the same period. For the 13-week period ended October 26, the company reported a 6% increase in total sales.
At the same time, the company reported a 1.3% decline in its operating margins, when compared to the first quarter of 2007. First-quarter operating margins, however, came in line with the margins registered in the second half of 2007. The year-over-year decline in operating margins was due to higher operating costs for labor, food, and marketing. This was partially offset by strong cost controls across all areas in the first quarter, the company noted.
The company, which reported its 2008 final results on September 5, further stated that it opened 10 new pubs since then.
On September 5, JD Wetherspoon had reported lower profits for the full year 2008, with like-for-like sales declining mainly due to the British smoking ban. For August, the company's like-for-like sales and total sales increased 1.1% and 5.5%, respectively. The company also said that its board proposed a final dividend, lower than last year.
Profit for the year declined to GBP 35.54 million or 25.1 pence per share from GBP 46.83 million or 31.6 pence per share reported in 2007. Excluding one-off benefit to tax charge in 2007, adjusted earnings was reported at GBP 35.54 million or 25.1 pence per share, down from GBP 41.36 million or 27.9 pence per share a year ago. Excluding fair value loss on financial derivatives, full-year adjusted profit fell to GBP 36.33 million or 25.7 pence per share from GBP 46.83 million or 31.8 pence per share in the previous year.
Statutory profit before tax had declined 12.7% to GBP 54.16 million from GBP 62.02 million in 2007. Adjusted pre-tax profit, excluding fair value loss on derivatives, fell 11.4% year-over-year to GBP 55 million.
Revenue for the year rose 2.1% to GBP 907.50 million from GBP 888.47 million last year. Meanwhile, like-for-like sales declined 1.1%.
In addition, for the first quarter, the company confirmed that it continued to be in a sound financial position, with a US$140 million private placement due for renewal in September next year. The pub operator also reported that its Board continues to explore possible re-financing options, and also continues to review the use of its cash generated from operations across capital expenditure, debt repayment, share buybacks, and dividends.
Moving forward, JD Wetherspoon said it remained confident on its prospects for the fiscal year ending July 2009, despite the continued difficult conditions in the wider U.K. economy.
The company is due to hold its Annual General Meeting today and will provide its next trading update on January 20, 2009.
JDW.L is currently trading on the LSE at 256.25 pence, up 9.25 pence, or 3.74%, on a volume of 1.15 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.