Wetherspoon reinstates dividend after year of underlying growth

4th Oct 2024 07:19

(Sharecast News) - JD Wetherspoon reported a 5.7% increase in full-year revenue on Friday, to £2.04bn, with a 73.5% rise in profit before tax to £73.9m before separately disclosed items.

The FTSE 250 pub operator said like-for-like sales increased 7.6% for the 52 weeks ended 28 July.

Operating profit before separately disclosed items also rose, by 30.2% to £139.5m, while the company's diluted earnings per share saw a 77.3% rise to 46.8p.

However, after accounting for separately disclosed items, profit before tax fell 33% to £60.6m, and diluted earnings per share dropped 16.1% to 39p.

Despite that, operating profit after those items still increased, by 34.5% to £142.6m.

The board reinstated the dividend, announcing a 12p per share payout, compared to no dividend last year.

Chairman Tim Martin said since the year-end, there had been a 4.9% like-for-like sales rise in the nine weeks to 29 September 2024.

He was still commenting on the effects of Covid-19, however, expressing concerns over potential future lockdowns, despite the last one being lifted in 2021, as well as the length of the ongoing government inquiry into the pandemic.

"The company currently anticipates a reasonable outcome for the current financial year, subject to our future sales performance," he said.

At 0830 BST, shares in JD Wetherspoon were up 0.71% at 729.68p.

Reporting by Josh White for Sharecast.com.