Wetherspoon (JD) PLC
28 April 2008
JD WETHERSPOON PLC
29th April 2008
THIRD QUARTER TRADING UPDATE
JD Wetherspoon plc ('JD Wetherspoon' or the 'Company') announces its second
Interim Management Statement, as required by the FSA's Disclosure and
Transparency Rules, relating to the third quarter, covering the thirteen weeks
ending 27th April 2008.
Current Trading
For the 13 weeks to 27th April 2008, like-for-like sales decreased by 0.1% with
a slow February followed by an improvement in March and April. Sales in the
quarter were helped by a successful beer festival in April and by increased
marketing investment, following slow sales in the second quarter. In the
year-to-date (39 weeks to 27th April 2008), like-for-like sales decreased by
1.5% and overall Company sales increased by 1.5%.
Traditional ale sales have been in decline in the pub market for many years, but
we have recently experienced a recovery in our pubs. At our recent real ale
festival we sold the equivalent of approximately 2.5m pints, an increase of over
7% on a like-for-like basis. Wine sales continue to improve, and premium bottled
beers and spirits are also showing positive trends. We continued to see growth
in coffee and tea sales during the period and have upgraded our food offer by
re-launching our curry and steak 'club' nights with great success.
We reported on 7th March 2008 that operating margins declined to 10.1% in the
first half of the financial year, compared to 10.6% in the first 6 months of
last year. We anticipate continuing pressure on the operating margin in the
second half, as a result of higher marketing, food, and labour costs.
Property
The financial year so far has seen the opening of 19 new pubs. 23 new sites are
expected to open this financial year, with approximately 30 in the next
financial year.
Other
In order to resolve a technical breach regarding distributable reserves due to
not filing interim accounts at Companies House, the Company will post a short
circular to its shareholders imminently and hold an Extraordinary General
Meeting on 3rd June 2008.
Financial position
The Company remains in a sound financial position.
Outlook
The pattern reported in the first half continued, with food sales in the period
growing strongly but with bar sales remaining slightly down. The combination of
better than expected sales and higher than expected costs has led to a
satisfactory outcome for the period. However, the market for bar sales remains
challenging and the Company continues to be cautious in the short term, in line
with the comments in our interim results. We still remain confident of our long
term prospects.
Enquiries:
John Hutson Chief Executive 01923 477777
Keith Down Finance Director 01923 477777
Eddie Gershon Company Spokesman 0208 352 5012 / 07956 392234
Notes to editors
1. JD Wetherspoon owns and operates pubs throughout the UK. The Company aims to
provide customers with good-quality food and drink, served by well-trained and
friendly staff, at reasonable prices. The pubs are individually designed and the
Company aims to maintain them in excellent condition.
2. Visit our website at www.jdwetherspoon.co.uk.
3. This announcement has been prepared solely to provide additional information
to the shareholders of JD Wetherspoon, in order to meet the requirements of the
UK Listing Authority's Disclosure and Transparency Rules. It should not be
relied on by any other party, for other purposes. Forward-looking statements
have been made by the directors in good faith using information available up
until the date that they approved this statement. Forward-looking statements
should be regarded with caution because of the inherent uncertainties in
economic trends and business risks.
4. The next trading update will be the Company's pre-close statement, to be
issued on 16 July 2008.
This information is provided by RNS
The company news service from the London Stock Exchange
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