JD Wetherspoon "encouraged" by sales lift

Written by Claire Weekes

Tuesday, 04 November 2008

Pub chain JD Wetherspoon has said it is confident for the year ahead, after reporting a like-for-like sales increase of 1.5% in the 13 weeks to 26 October.

The operator, which holds its annual meeting today, said the results marked "an encouraging start to the year".

Total sales across its food and drinks portfolio were up 6%, despite the economic slowdown. It has also opened 10 new pubs since its last trading update.

Operating margins declined by 1.3% year on year. In a statement, the company said: "Year-on-year, this reflects anticipated increases in operating costs, such as labour, food and marketing, partially offset by strong cost controls across all areas in the first quarter."

"Notwithstanding the continued difficult conditions in the wider UK economy, we remain confident of the company's prospects for the financial year ending July 2009," it said.