Boss of Wetherspoons says coronavirus pandemic makes it impossible to provide realistic guidance for rest of year

THE boss of pub chain Wetherspoons has said the coronavirus pandemic has made it impossible to provide realistic guidance on its performance in the remainder of the financial year.

However, Tim Martin, the Chairman of J D Wetherspoon, said company believes it has sufficient liquidity to maintain operations at a substantially lower level of sales.

J D Wetherspoon has issued it results for the 26 weeks ended 26 January 2020.

Hide Ad
Hide Ad

The company's revenue before exceptional items was £933.0m, compared with £889.6m in the same period the year before. Profit before tax was £57.9m , which is higher than the £50.3m in the comparative period in the previous year.

Tim MartinTim Martin
Tim Martin

Tim Martin, the Chairman of J D Wetherspoon plc, said “As recently reported, in the six weeks to 8 March 2020, like-for-like sales increased by 3.2% and total sales by 2.9%. In the following week, to 15 March, sales declined by 4.5%.

"In the early part of the current week, following the Prime Minister’s advice to avoid pubs, sales have declined at a significantly higher rate.

Mr Martin added: “It is obviously very difficult to predict, in these circumstances, how events will unfold in future weeks and months, but we now anticipate profits being below market expectations, so long as the current health scare continues. As a result of this uncertainty, it is impossible to provide realistic guidance on our performance in the remainder of the financial year.

Hide Ad
Hide Ad

“The company has decided to delay most capital projects and to reduce expenditure, where possible, including the cancellation of the interim dividend. As a result of these actions, combined with the Government’s proposals on business rates relief and credit guarantee facilities, the company believes it has sufficient liquidity to maintain operations at a substantially lower level of sales.

“As many companies and commentators have noted, the current health crisis places the hospitality industry, in particular, under great pressure. Wetherspoon, like our peers, will be working closely with all parties, including employees, banks, landlords and suppliers, in order to emerge from the situation in the best shape.”

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.