Wetherspoon year sales up

15th Jul 2009 07:01

Pub group JD Wetherspoon said like-for-like sales in the 50 weeks to July increased 1.2% and added that it was "optimistic" about its prospects for the new year. In the financial year-to-date (50 weeks to 12th July 2009), like-for-like sales increased 1.2% and overall sales rose 5.2% thanks to encouraging sales performance from both its existing pubs and new openings. In the fourth quarter (11 weeks to 12th July 2009), like-for-like sales decreased slightly by 0.8%. Total company sales over the same period increased by 3.1%. "Costs were lower than anticipated in a number of areas, including energy, labour and marketing. As a consequence we anticipate reporting operating margins (before exceptionals) for the second half of this financial year of at least 10.0%, higher than our earlier expectations," said the group.In light of its sales and margin performance, the group is confident about the outlook for the current financial year."As a result of the performance of our pubs, and the full year effect of pubs opened this year, combined with lower costs in areas such as utilities, the board is optimistic about prospects for the next financial year," it said. The group said pubs opened this year have been at substantially lower costs than in recent years.It said the ratio of its financial year end net debt to EBITDA is expected to be less than 3 times.