Like-for-like (LFL) sales increased by 7.6% against FY23, with bar sales up by 8.9%, food sales by 5.6% and a 10.8% rise in slot & fruit machine sales alongside a 2.7% uptick in hotel room sales.
The firm detailed LFL sales for the 52-week period, ending 28 July 2024, had been stronger than total sales due to a “small number” of pub disposals and lease terminations.
During the 12-month period, JDW sold eighteen pubs and terminated the lease of an additional nine loss-making pubs, which gave rise to a cash inflow of £8.9m.
Operating profit
The pub giant opened two pubs during the financial year, the Star Light at Heathrow Airport and The Captain Flinders, close to Euston Station in London. It also completed expansions and renovations at a number of sites.
In addition, JDW launched its third franchised site at Haven Primrose Valley Holiday Park, Filey, North Yorkshire in March 2024.
As stated in a previous trading update, the company said it had the potential to reach 1,000 pubs in the UK. Its estate is currently comprised of some 800 sites.
Operating profit, before separately disclosed items, stood at £139.5m, up from £107.1m in 2023, while the operating margin, before separately disclosed items, was 6.9% compared with 5.6% last year. Profit, before tax and separately disclosed items was £73.9m (2023: £42.6 million).
Total capital investment was £116.5m, up from £78.5m in 2023, £11.9m of which was invested in new pubs and pub extensions, compared with £20.4m last year.
In addition, £82.6m was injected into existing pubs and IT (2023: £47m), with £21.9m in freehold reversions of properties where Wetherspoon was the tenant (2023: £11.2m).
Increased sales
The company’s debt levels, excluding IFRS-16 lease debt, decreased from £804.5m to £660m since January 2020. On an IFRS-16 basis, debt decreased from £1.45bn to £1.07bn during this period.
Additionally, the trading report detailed total available finance facilities stood at £938.0m. On 6 June this year, the company signed a four-year £840m banking agreement.
JDW chair Tim Martin said: “Sales continue to improve. In the last nine weeks, to 29 September 2024, like-for-like sales increased by 4.9%.
“[However], the company continues to be concerned about the possibility of further lockdowns and about the efficacy of the Government enquiry into the pandemic, which will not be concluded for several years.”