JD Wetherspoons delivers 'reasonable' set of interim results - UPDATE

15th Mar 2013 07:10

Pub Group JD Wetherspoon has posted a 'reasonable' set of results for the half year ended December 31st, with a 10 per cent rise in revenue, but pre-tax profit down 2.7 per cent. The group warned investors its biggest threat continues to be the VAT disparity between supermarkets and pubs and the continuing imposition of stealth taxes. "Taxation and input costs will continue to rise, but, overall, the company continues to aim for a reasonable outcome in the current financial year," Tim Martin, the Chairman of the group, said. Like-for like sales during the period grew to £626.4m (2012: £569.4m), with like-for-like bar sales up by 4.1% (2012: 3.4%), like-for-like food sales up 13.4% (2012: 0.1%), while machine sales rose by 4.4% (2012: decreased by 3.8%).Operating profit before exceptional items decreased by 2.0% to £52.1m (2012: £53.1m) and after exceptional items increased by 3.1% to £52.1m (2012: £50.5m). The operating margin before exceptional items was lower, at 8.3% (2012: 9.3%).Pre-tax profit (before exeptionals) declined to £34.8m from £35.8m a year earlier, while earnings per share rose 3.0% to 20.8p (2012: 20.2p), owing to fewer shares in issue and a reduced corporation tax charge. Basic earnings per share after exceptional items increased by 13.7% to 20.8p (2012: 18.3p). The group declared an interim dividend of 4.0p per share, on par with that issued for the same period the previous year. During the period, the group opened five new pubs, bringing the number of pubs open at the period's end to 865. It now expects to open around 30 pubs during its financial year.With regards to trading since the year-end, during the six weeks to March 10th, like-for-like sales increased by 7.3%, with total sales increasing by 9.9%. The share price edged 1.37% higher to 517p in opening trade.