Wetherspoon’s gains
AN INTERNATIONAL beer festival helped JD Wetherspoon defy the economic gloom and enjoy a surge in sales over recent weeks.
The 800-strong chain, founded by chairman Tim Martin, said sales at pubs open for more than a year increased 2 per cent for the third quarter to April as those for the group as a whole, reflecting new openings, rose by 8.4 per cent. About 3 million pints were sold during the festival.
Analysts said the gain in same-pub sales reflected a strong recovery over the past seven weeks after they fell during the first part of the period. “They must have been up about 4 per cent or more in order to make the maths work,” said Langton Capital’s Mark Brumby.
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The effect of the increases in the next financial year will be £11million
However Martin warned profit margins were still being squeezed by the cost of government legislation. In particular, he bemoaned changing taxes on slot machines, plans to introduce a “late-night levy” and hikes in duty.
“The effect of the increases in the next financial year will be £11million,” he said, adding the total tax bill for this year will be £50million higher than the last at “about half a billion pounds”.
Wetherspoon will open 40 pubs in the next year.