Wetherspoon shares reach all-time high

Shares in JD Wetherspoon (JDW) rose to an all-time high this morning as the group revealed details of first quarter trading.

At 595.25p its shares were trading 30.5p - 5.25 per cent - higher than yesterday's close, as the market digested news from both the group's non-smoking estate and a generally upbeat trading statement.

But the group warned that the Scottish winter will still prove crucial in assessing how pubs - both north and south of the border - cope with the smoking ban.

Finance director Jim Clarke said that with smokers in Scotland now required to take their habit outside licensed premises, the next two to three months will give everyone in the industry a good indication of how business is likely to be affected.

Speaking as the managed pub group announced like-for-like sales for the first quarter up 9.2 per cent, Clarke said JDW's 39 non-smoking pubs in Scotland had had an encouraging start to the financial year, with like-for-likes up 5.2 per cent.

Total sales for the group in the 13 weeks to October 29 rose 9.7 per cent.

Clarke said increased prices had played their part in the improved trading performance, and that the work the group had done on its product range meant it could be "more flexible on pricing going forward".

But he maintained Wetherspoon would maintain its competitive edge. "The gap between us and the competition has always been there. We compare prices of drinks and we're still sub-20 per cent our competitors."

Analysts welcomed the update. Douglas Jack of Panmure Gordon said with JDW's average list prices coming in 22 per cent below the competition it could afford to bring in increases higher than 2.6 per cent per annum currently introduced by its peers.