Going back to January, the pubco started 2024 as being recognised as one of the top employers in the UK by the Top Employers Institute as well as double-digit year-on-year growth across its estate.
In the 25 weeks to 21 January, JDW reported like-for-like (LFL) sales were 10.1% higher than the same period the previous year, with an 11.8% increase in bar sales as well as a 7.9% uptick in food trade.
However, in February the pub behemoth, which was founded in 1979, revealed it would be increasing its prices by up to 3.95% on a number of food and drink items due to rising costs.
Moving to February, JDW said it had identified the possibility of increasing its estate by just under a quarter (23%).
The trading update, which covered the 26 weeks ending 28 January 2024, showed total sales for the first half of the 2024 financial year had hit £991m – an 8.2% rise compared with the same period in 2023.
Investments and disposals
Again, against the same 2023 period, like-for-like sales during this period were up by 9.9% while like-for-like bar sales rose by 11.6%, food sales by 7.6%, slot/fruit machine sales by 10.5% and hotel rooms by 2.8%.
The company detailed like-for-like sales were stronger than total sales due to a small number of disposals and lease terminations, including the sale of five pubs, termination of five leaseholds and three sublets, giving rise to a cash flow of £3.8m.
In addition, JDW disposed of 18 sites in total between May 2022 and May 2023, generating a net cash inflow of £6.8m.
The firm said most of the sites were smaller and older or where the company had a second pub in reasonably close proximity.
However in March the firm announced the opening of its first holiday park pub, the Five Stones at Haven’s Primrose Valley holiday park in Filey, North Yorkshire.
The following month the multiple operator, which runs more than 800 sites across the UK, unveiled plans to open a new pub near BrewDog’s London site at the Sidings in Waterloo station.
“The pandemic was a tremendous shock to the trade and the years since have been a story of slow recovery- the predicted post-pandemic boom failed to show up and vast inflation took hold."
JDW said it would invest approximately £2.5m developing the pub, named the Lion & the Unicorn, with an opening date set for later this summer, creating 120 full and part-time jobs.
In the May trading update, JDW also revealed a 5.2% like-for-like sales increased in the 13 weeks to 28 April 2024 against the same period last year.
Also in May, the firm announced it would be investing £5m into redeveloping one of its sites in Newcastle with plans to reopen the venue as its first hotel in the city.
Most recently, the pubco reported “record results” its pre-close trading update for the 10 weeks to 7 July 2024.
The update revealed like-for-like sales were up by 5.8% in the period, compared to the same timeframe last year while year-to-date like-for-like sales rose by 7.7%.
Moreover, in the year-to-date, JDW opened two pubs and sold or surrendered to the landlord 26 pubs.
Big picture
JDW also estimated net debt would sit around £670m at the end of the financial year.
Last month (6 June), it signed a new four-year £840m banking agreement on attractive terms.
Founder and chairman Tim Martin told The MA: “JDW's performance in 2024 has probably mirrored the performance of the licensed trade, or at least that of the quoted managed pubcos, such as M&B, Fuller’s and Young’s.
“The pandemic was a tremendous shock to the trade and the years since have been a story of slow recovery – the predicted post-pandemic boom failed to show up and vast inflation took hold.
“The big picture has been a painstakingly slow but consistent recovery, which has continued in 2024, with sales at record levels and profits, ever so slowly, creeping back.
“Tennis champion Boris Becker said his main lesson in life was that 'restaurants are for eating in', Wetherspoon’s main lesson is 'avoid pandemics at all costs'."
- Read Tim Martin’s Big Interview with the MA here
