JD Wetherspoon 2007 profits up six per cent

Managed pubco JD Wetherspoon saw pre-tax profits rise six per cent to £62m last year, slightly below analyst's expectations, on turnover up five per cent to £888.5m.

Underlying earnings per share rose 17 per cent to 28.1p, with a dividend per share of 12p, up from 4p in 2006.

Despite smoking bans being introduced throughout the UK in the last 12 months Wetherspoon reported like-for-like sales up 5.6 per cent and like-for-like profits up seven per cent in the year to July 29 2007.

This performance boosted by a rise in food sales, although the impact of the smoking ban - and possibly the recent poor weather across the UK - was highlighted by the group's July like-for-like sales recording a 5.3 per cent rise, while August saw a like-for-like sales increase of just 1.1 per cent.

However Wetherspoon's chairman Tim Martin said the group remained "cautious" about the coming financial year under the smoking ban regimes throughout the UK, "as it involves more uncertainty than usual, although we have no doubt that this legislation will be to the long-term benefit of the licensed trade".

The importance of food in Wetherspoon's estate was highlighted by Martin: "Food now accounts for more than 30 per cent of our sales, compared with 17 per cent 10 years ago; including those bar purchases made in association with table meals, diners now account for approximately two-thirds of our sales."

According to Martin the group said also sells approximately 250,000 breakfasts each week and claims to be the leading retailer of Lavazza coffee in the world.

Average sales per pub increased by 5.5 per cent in the year under review, with like-for-like sales increasing by 5.6 per cent.

On the subject of costs, Martin said the group believed the "outlook for the current financial year is approximately neutral, with a decline in utilities charges being offset by higher payments for interest and wages".

Wetherspoon's shares were trading down 33p to 565p following the results announcement.