JD Wetherspoon reports like-for-like sales up 5.8% in past seven weeks as half-year revenue almost hits £1bn: JD Wetherspoon has reported sales have continued to improve as the company reported record first-half revenue of almost £1bn. Chairman Sir Tim Martin said: “Sales continue to improve. In the last seven weeks, to 17 March 2024, like-for-like sales increased by 5.8%. The company currently anticipates a reasonable outcome for the financial year, subject to our future sales performance.” The company stated: “In summary, the company has recovered steadily from the pandemic, with current sales at record levels. In spite of a reduction in the overall number of pubs, sales have continued to increase – total sales are now about one third higher than in 2015, when the number of pubs peaked, and sales per pub have increased by about 50% since then. Our best estimate is that the company has potential for about 1,000 pubs in the UK.” Total sales for the 26 weeks to 28 January 2024 were a record £991m, a 8.2% increase on last year’s figure of £916.0m. Like-for-like sales were up 9.9% on last year and 15.3% compared with the same period in FY19 – the last full year before the covid pandemic. Like-for-like bar sales increased by 11.6% on last year while like-for-like food sales were up 7.6%, slot/fruit machine like-for-like sales by 10.5% and hotel room like-for-like sales by 2.8%. Profit before tax and separately disclosed items was £36.0m (2023: £4.6m), including property gains of £0.1m (2023: £0.5m). Operating profit was £67.7m compared with £37.4m the previous year, an increase of 81%. In the period, the company sold five pubs, terminated the lease of five pubs and sublet three pubs. This gave rise to a cash inflow of £3.8m. There was a loss on disposal of £5.9m, recognised in the income statement, relating to these pubs. The company opened two pubs – The Star Light at Heathrow airport and the Captain Flinders, close to Euston station in London. The first Wetherspoon franchise pub opened at Hull University in January 2022. The second opened at Newcastle University in September 2023. The third opened at Haven Primrose Valley holiday park, Filey, North Yorkshire, in March 2024 Since 2010, the company has invested £448m in acquiring the freehold “reversions” of pubs where it was previously the tenant. A total of 71% of pubs are now freehold, an increase from 41% in 2010. Debt levels, excluding IFRS-16 lease debt, were £694.2m at the period end (30 July 2023: £641.9m). There was a reduction in trade and other payables of £48m between the last year end and the end of the period under review, which contributed to the increase in borrowings. Total capital investment was £57.2m (2023: £47.8m). A total of £10.5m was invested in new pubs and pub extensions (2023: £10.7m), £34.6m in existing pubs and IT (2023: £27.1m) and £12.1m in freehold reversions of properties where Wetherspoon was the tenant (2023: £10.0m). Sir Tim also said Wetherspoon “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”. He added: “In contrast, the World Health Organisation (WHO) reported on its findings in 2022. The conclusion of professor Balloux, broadly echoed by Professor Dingwall, based on an analysis by the WHO of the pandemic, is that Sweden (which did not lock down), had a covid-19 fatality rate ‘of about half the UK’s’ and that ‘the worst performer, by some margin, is Peru, despite enforcing the harshest, longest lockdown.’ Professor Balloux concludes that ‘the strength of mitigation measures does not seem to be a particularly strong indicator of excess deaths’.”