Pre-Close Statement

RNS Number : 1538Z

Wetherspoon (JD) PLC

15 July 2008

 



FOR IMMEDIATE RELEASE

JD WETHERSPOON PLC

PRE-CLOSE STATEMENT

JD Wetherspoon plc ('JD Wetherspoon' or the 'Company') announces its pre-close statement prior to the end of the current financial year on 27th July 2008. 

Current Trading

For the 11 weeks to 13th July 2008, like-for-like sales increased by 0.4%. In the year-to-date (50 weeks to 13th July 2008), like-for-like sales decreased by 1.0% and overall Company sales increased by 2.2%

We reported on 7th March 2008 that we expected second half sales trends to be broadly similar to those of the second quarter, when like-for-like sales declined by 3.1%. Actual sales have been ahead of this, due in part to the marketing activities we have undertaken, and we consider the outcome a satisfactory performance in the current environment.

Property

The financial year so far has seen the opening of 23 new pubs with 1 further opening expected.

Financial position

The Company remains in a sound financial position and continues to generate strong free cashflow.  In the current financial year we have financed cash dividend payments of £17m, share buy-backs of £12m and the opening of 23 new pubs to date, with a minimal increase in debt.

Outlook 

After a slow Q2, when like-for-like sales declined by 3.1%, sales in the last 24 weeks have been approximately flat, in line with record sales last year. Our expectations for the financial year are unaltered.

In the next financial year (commencing 28th July 2008), in common with other pub and restaurant businesses, we continue to expect a considerable increase in our costs, especially in energy, food, labour and tax. Although it is widely believed that current inflationary costs stem from external sources, a significant proportion of our cost increases (especially excise duty and labour cost increases) stem from government legislation.  In spite of these increases, we remain confident of our future prospects, due to our resilient sales performance and strong free cashflow.

Enquiries:

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 preliminary results-announcement, to be issued on 5 September 2008. 

 

END

 

 

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