Pub company J D Wetherspoon Plc. (JDW.L) on Friday posted a surge in profit for the first half, helped by a separately disclosed profit and higher sales. The company, whose like-for-like sales rose 5 percent, also declared an interim dividend for the six-month period.
The company posted profit before tax, after separately disclosed items, of 41.35 million pounds in the first six months, higher than 26.14 million pounds recorded in the same period a year ago.
The company recorded a pre-tax separately disclosed profit of 8.5 million pounds in the first six months, compared to loss of 9.9 million pounds. This profit was the result of a positive movement in the value of interest rate swaps of 11.1 million pounds, partially offset by loss on disposal of 2.2 million pounds.
Before separately disclosed items, pre-tax profit were down 8 percent at 32.87 million pounds, compared to 36.03 million pounds last year.
Profit for the period, after separately disclosed items, rose to 32.23 million pounds or 26.7 pence per share from 18.65 million pounds or 14.7 pence per share in the previous-year period.
Excluding separately disclosed items, profit for the period was 24.88 million pounds or 20.6 pence per share, in contrast to 24.89 million pounds or 19.6 pence per share a year ago.
For the six-month period, revenues rose 4 percent to 1.03 billion pounds from 990.95 million pounds in the prior-year period. Like-for-like sales climbed 5 percent from last year.
Looking ahead, the company said that the combination of higher VAT rates and increased labour costs will have a huge impact on the pub industry. The company said that it expects a reasonable outcome for the year ahead, depending on its future sales performance.
The company's Board of Directors declared an interim dividend of 4.0 pence per share for the six-month period. The interim dividend will be paid on May 30 to those shareholders on the register at May 1.
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