JDW profits rise by a fifth
JD Wetherspoon has reported a 20% rise in pre-tax profits for its first six months on the back of strong growth in ale sales and breakfasts.
Like-for-like sales were up by 7.4% in the six months to 28 January. The company saw ale sales increase by 5% and the number of breakfasts served each week hit the 230,000 mark.
Profits were £32.9m for the six-month period to 28 January, up from £27.4m a year ago.
However, the company is cautious about its results for the second half.
Chairman Tim Martin said: "The company is targeting like-for-like growth in the second half-year of about 2% to 4%. In view of the increase in wages and utility costs, combined with slower sales growth, the company is cautious about the outcome in the second half.
"The company continues to make strong efforts to improve every area of its
business and, combined with targeting continuing improvements in sales and trading performance, and our strong cash flow, we remain confident of future prospects."
Martin said that those pubs in England and Wales converted to non-smoking ahead of the ban were now enjoying profits growth "above the company average".
He reported that Wether-spoon has been placing emphasis on expanding its product range to provide a competitive edge.
"We have introduced a number of products rarely available in British pubs, including our top-selling cider Kopparberg, the number one Swedish cider.
"Wetherspoon sells more Kopparberg than anyone else in the world, including Sweden. Our fastestgrowing bottled beer range comes from Poland and we have introduced a range of guest lagers on draught from around the world."
