Wetherspoon (JD) PLC
28 January 2000
Placing of New Shares
Issue of New Equity Shares
JD Wetherspoon announces today that it is raising £43.8
million (net of expenses) through the issue of 9,915,000 new
ordinary shares (representing 5 per cent. of the current
issued share capital) at a price of 450p per share. The new
shares have been placed with institutional investors by
Dresdner Kleinwort Benson.
As the Company has grown, it has been financed by cash flow,
loan facilities, sale and leasebacks and equity. The equity
being placed today will further strengthen the capital base
of the Company and complements the recent re-negotiation of
banking facilities which total £225 million and the US debt
private placement which closed in September 1999 raising
approximately £87 million. Overall, JD Wetherspoon will be
strongly positioned to continue to take advantage of the
significant opportunities to grow its presence throughout
the UK.
Trading Update
Total sales in the twenty-five weeks to 23 January 2000
increased by 44 per cent. to £167.4 million compared with
the previous year. Sales per pub week increased by 13 per
cent. to £19,042. Food sales increased by 8.5 per cent. on
a like for like basis, reversing a 2 per cent. decline in
the previous financial year. Like for like sales increased
by 17 per cent., compared with 18 per cent. reported in
November for the thirteen weeks to 31 October 1999. As
indicated in November 1999, in our first quarter's sales
update, sales in the second quarter reflect a stronger
comparative period.
The five weeks to 2 January 2000 saw total sales increasing
by 39 per cent. with like for like sales increasing by 14
per cent. The majority of our pubs closed early on New
Year's Eve for the first time slightly reducing sales
growth.
Expansion plans remain in line with our expectations with 45
new pubs opened in the financial year to date bringing the
total number to 372.
We continue to open pubs in a variety of locations
throughout the country and we have now established a
significant presence in Scotland and Wales. We are also
reviewing opportunities in Northern Ireland with two
potential sites being at advanced stages of negotiations.
The sales performance of our recently opened pubs is
encouraging. For example, the sites in Cardiff (opened July
1999), Cambridge (opened September 1999) and Plymouth
(opened December 1999) are already in our top 10 sales
performing pubs.
Prospects
The current level of sales growth from new and more mature
pubs is very encouraging and continues the momentum as
evident in the second half of the previous financial year.
The proceeds from the issue of the new shares will underpin
and accelerate where appropriate our expansion plans and we
are currently expecting to open approximately 90-95 new pubs
on an annual basis. In addition, the fund raising will
increase our flexibility on site selection.
We currently have 40 sites in the course of development, all
of which are expected to open in the current financial year,
28 sites with all the necessary permissions for development
and a further 107 sites for which terms have been agreed.
The current opportunities in the property market remain
favourable to JD Wetherspoon and the potential for
development of JD Wetherspoon pubs remains encouraging.
Details of the Cash Placing
The cash placing is conditional on the admission of the new
shares to the Official List of the London Stock Exchange,
for which application has been made. Dealings in the new
shares, which will rank pari passu in all respects with the
existing ordinary shares, are expected to commence on 3
February 2000.
Commenting on the equity issue, Tim Martin, Chairman of JD
Wetherspoon plc, said:
'The Company continues to make good progress with strong
underlying sales momentum. I am pleased to take a further
step to expand the equity base of the business which allows
us to take advantage of the investment opportunities which
present themselves.'
Enquiries:
JD Wetherspoon
Tim Martin Chairman 01923 477777
John Hutson Managing Director 01923 477777
Jim Clarke Finance Director 01923 477777
Eddie Gershon Press Office 0956 392234
Dresdner Kleinwort Benson
Ben Thorne 0171 623 8000
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