JDW sees lfls up 6.8% for full year

JD Wetherspoons (JDW) has reported a like-for-like sales (lfls) increase, before exceptional items, of 6.8% for the full year to 28 July 2019.

Revenue was up 7.4% over the period, from £1.69bn in 2018 to £1.81bn this year, but profit before tax was down 4.5% to £105.5m.

Food sales saw an 8.3% increase and bar sales were up 5.8%, with slot/fruit machines sales increased by 10.3% and hotel rooms by 3.9%.

Chairman Tim Martin said: “Despite continuing political problems, stemming from the transfer of democratic power to a technocratic elite, Wetherspoon continues to perform well. Like-for-like sales for the six weeks to 8 September 2019 were up 5.9%.

“We currently anticipate a reasonable outcome (pre IFRS16) for the current financial year, subject to our future sales performance.”

The pub operator’s total capital investment for the year stood £167.6m (2018: £110.1m), with £35.2m of that invested in new pubs and pub extensions (2018: £35.9m), and £55.1m in existing pubs and IT (2018: £64.7m).

Significantly more was invested in freehold reversions where JDW was already a tenant – £77.2m, compared to £9.5m in the previous financial year.

The company opened five pubs during the year, with nine sold or closed, resulting in a trading estate of 879 pubs at the year end.