JD Wetherspoon Returns To Sales Growth In Fourth Quarter

14th Jul 2010 07:19

By Michael Carolan Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. pub group J.D. Wetherspoon PLC (JDW.LN) Wednesday returned to sales growth in the fourth quarter and said it expects a resilient performance next year. The operator of more than 700 managed pubs across the U.K. said sales from pubs open at least a year grew 1% in the 11 weeks to July 11. This marks a turnaround from May when the company said it had grown more cautious about the coming year after tax rises resulted in a 0.8% drop in third-quarter sales. Comparable sales for the year to date are now 0.1% higher than the previous year. The company's financial year ends on July 25. The caution in May resulted in a sharp fall in the company's shares. They had enjoyed a strong year up until May but have since fallen back and are now trading at a similar level to a year ago, closing Tuesday at 438 pence. "Although our interest charges next year will be higher and the economy has taxation and employment pressures, the company is confident of a resilient performance for the next financial year," the pub group said in a statement. The company said it had opened 41 new pubs in the year and closed two. A further six pubs will open before the year end. Including new openings, sales grew 5.8% in the 11 week period and 4.4% in the year to date. "Our sales, profit and cash-flow continue to be resilient and the performance of our recently opened pubs is encouraging," the company said. "In addition, as previously indicated, we continue to believe there are substantial opportunities for us to acquire sites at reasonable prices." Wetherspoon is planning to open 250 pubs over the next five years to reach an estate size of 1,000 pubs. JD Wetherspoon has been one of the strongest performing pub groups in recent years. As a directly managed pub operator with tight control of prices and costs, it has proved relatively resilient in a difficult time for the U.K.'s pubs. -By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; [email protected] (END) Dow Jones Newswires July 14, 2010 02:19 ET (06:19 GMT)