Profits up at Wetherspoon despite increased costs

Pub company JD Wetherspoon has recorded a 3% increase in profits despite a "considerable increase" in costs. Pre-tax profits at the high-street pub operator rose to £25.6m in the six months to 26 January, compared with £24.9m for the same period in 2002. Turnover increased by 23% to £350.6m, against £285.2m a year earlier.

Chairman Tim Martin said: “Our results for the last six months have been affected by a considerable increase in costs as well as by the trading patterns previously announced.

“I believe these cost increases will abate in the future and that, combined with our continued sales growth and opening programme, should provide a profitable and cash-generative future for the company. We therefore remain confident of future prospects.”

Wetherspoon’s interim results were helped by 21 new pubs added to its portfolio during the period, taking its total number of pubs to 629.

Like-for-like sales increased by 4.7%.

Weekly sales at the group’s 44 Lloyds pubs averaged more than £30,000, with five new Lloyds added during period. Martin said like-for-like sales in February had increased by 4.9% and that seven new pubs had been opened. Some 14 more pubs are being built, 43 sites have permission for development, a further 27 have had terms agreed on, and 120 are under negotiation. Wetherspoon expects to open about 50 new pubs in the year to 28 July.