Pre-Close Statement

RNS Number : 6698V

Wetherspoon (JD) PLC

14 July 2009

 



FOR IMMEDIATE RELEASE

JD WETHERSPOON PLC

PRE-CLOSE STATEMENT  

JD Wetherspoon plc ('JD Wetherspoon' or the 'Company') announces its pre-close statement prior to the end of the current financial year on 26th July 2009. 

Current Trading

For the 11 weeks to 12th July 2009, like-for-like sales decreased by 0.8%. Total Company sales over the same period increased by 3.1%. Sales in the first 6 weeks of the fourth quarter last financial year benefited from a major marketing campaign offering reductions in prices for bar and food products. Like-for-like sales in the equivalent 6 week period this year decreased by 2.9%. In the remaining 5 weeks, like-for-like sales increased by 2.0%.

In the financial year-to-date (50 weeks to 12th July 2009), like-for-like sales increased by 1.2% and overall Company sales increased by 5.2%. This is an encouraging sales performance, both from our existing pubs and new openings. 

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.

Property

The financial year so far has seen 33 openings and 2 disposals, with a further 6 openings expected by the year end. As previously announced, pubs opened this year have been at substantially lower costs than in recent years.

Financial position

Free cashflow in the year-to-date has been strong, enabling us to open 39 new pubs and pay a dividend of £10M, while reducing debt by approximately £40M. As a result, the ratio of our financial year end net debt to EBITDA is now expected to be less than 3 times. As we have previously stated, we intend to repay our US$ Private Placement when it falls due in September 2009. 

Outlook 

In the light of our sales and margin performance, we are 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.

Enquiries:

Keith Down	Finance Director	01923 477777
Eddie Gershon	Company Spokesman	0208 352 5012 / 07956 392234

Notes to editors

1.  JD Wetherspoon owns and operates pubs throughout the UK. The Company aims to provide customers with good-quality food and drink, served by well-trained and friendly staff, at reasonable prices. The pubs are individually designed and the Company aims to maintain them in excellent condition.

      2.  Visit our website at www.jdwetherspoon.co.uk.

3.  This announcement has been prepared solely to provide additional information to the shareholders of JD Wetherspoon, in order to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied on by any other party, for other purposes. Forward-looking statements have been made by the directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks. This announcement is based on information sourced from unaudited management accounts and excludes any exceptional items.

4. The next trading update is scheduled to be the Company's preliminary results announcement, to be issued on 11th September 2009. 

 

END

 

 

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