TIDMJDW
RNS Number : 8252Q
Wetherspoon (JD) PLC
15 September 2017
15 September 2017
J D WETHERSPOON PLC
PRELIMINARY RESULTS
(For the 53 weeks ended 30 July 2017)
FINANCIAL HIGHLIGHTS Var% Var%**
Before exceptional items
Revenue GBP1,660.8m (2016: GBP1,595.2m) +4.1% +1.9%
Like-for-like sales +4.0%
Profit before tax GBP102.8m (2016:
GBP80.6m) +27.6% +25.3%
Operating profit GBP128.5m (2016: GBP109.7m) +17.1% +15.1%
Earnings per share (including shares
held in trust)
69.2p (2016: 48.3p) +43.3%
Free cash flow per share 97.0p (2016:
76.7p) +26.5%
Full year dividend 12.0p (2016: 12.0p) Maintained
After exceptional items*
Profit before tax GBP76.4m (2016: GBP66.0m) +15.6% +13.7%
Operating profit GBP128.5m (2016: GBP109.7m) +17.1% +15.1%
Earnings per share (including shares
held in trust)
50.4p (2016: 43.4p) +16.1%
* Exceptional items as disclosed in account note 4.
** Excluding week 53.
Commenting on the results, Tim Martin, the Chairman of J D
Wetherspoon plc, said:
"Most 'PLCs' are expected to comment, in their results'
statements, on the UK's prospects outside of the EU and on the
likely impact on their individual companies.
"It is my view that the main risk from the current Brexit
negotiations is not to Wetherspoon, but to our excellent EU
suppliers - and to EU economies.
"As the public instinctively understands, but few academics,
economists, boardrooms and City institutions grasp, democracy is
the strongest economic steroid - hence the astonishing rise of
countries like Japan, Singapore and South Korea, after its
adoption. A fascinating insight into the thought processes of many
pro-Remain 'elites' can be found in an article in The Spectator
(appendix 2 below) by Professor Robert Tombs of Cambridge
University.
"In the current negotiations, democratically-elected politicians
from the UK are dealing with unelected oligarchs from the EU. Since
the oligarchs are not subject to judgement at the ballot box, their
approach is dictated by more sectarian factors - the interests and
ideology of EU apparatchiks like them, rather than residents or
businesses from EU countries.
"As a result of their current posturing and threats, EU
negotiators are inevitably encouraging importers like Wetherspoon
to look elsewhere for supplies. This process is unlikely to have
adverse effects on the UK economy, as companies will be able to
switch to suppliers representing the 93% of the world's population
which is not in the EU, but this evolution will eventually be
highly damaging to the economy of the EU.
"Wetherspoon is extremely confident that it can switch from EU
suppliers, if required, although we would be very reluctant to
initiate such actions.
"It is my view that Juncker, Barnier, Selmayr, Verhofstadt and
others need to take a wise-up pill in order to avoid causing
further economic damage to struggling economies like Greece,
Portugal, Spain and Italy - where youth unemployment, in
particular, is at epidemic levels.
"There seems to be little genuine appetite for a free-trade deal
from the Brussels bureaucracy, so EU companies are, paradoxically,
reliant on the goodwill of UK consumers, who are likely to prefer
tariff-free goods in the future from non-EU countries, which are
generally in favour of free trade, rather than deals with companies
which are subject to the diktat of those who wish to punish the
UK.
"I have written an article dealing with several issues related
to Brexit, which can be found in the latest edition of Wetherspoon
News - and is included below in appendix 1.
"Since the year end, Wetherspoon's like-for-like sales have
continued to be encouraging and have increased by 6.1%. This is a
positive start, but is for a few weeks only - and is very unlikely
to continue for the rest of the year. Comparisons will become more
stretching - and sales, which were very strong in the summer
holidays, are likely to return to more modest levels. It is
anticipated that like-for-like sales of around 3-4% will be
required in order to match last year's profit before tax. We will
provide updates as we progress through the year. We currently
anticipate a trading outcome for the current financial year in line
with our expectations."
Enquiries:
John Hutson Chief Executive Officer 01923 477777
Ben Whitley Finance Director 01923 477777
Eddie Gershon Company spokesman 07956 392234
Photographs are available at: www.newscast.co.uk
Notes to editors
1. J D 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 jdwetherspoon.com
3. This announcement has been prepared solely to provide
additional information to the shareholders of J D 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 inherent uncertainties in economic trends and business
risks.
4. The annual report and financial statements 2017 has been
published on the Company's website on 15 September 2017.
5. The current financial year comprises 52 trading weeks to 29 July 2018.
6. The next trading update will be issued on 1 November 2017.
CHAIRMAN'S STATEMENT
Financial performance
I am pleased to report a year of progress for the company, with
record sales, profit and earnings per share before exceptional
items. The company was founded in 1979 - and this is the 34th year
since incorporation in 1983. The table below outlines some key
aspects of our performance during that period. Since our flotation
in 1992, earnings per share before exceptional items have grown by
an average of 15.5% per annum and free cash flow per share by an
average of 16.6%.
Summary accounts for the years ended July 1984 to 2017
Financial Revenue Profit/(loss) Earnings Free cash Free cash
year flow flow
before per share per share
tax and before
exceptional exceptional
items items
GBP000 GBP000 pence GBP000 pence
1984 818 (7) 0
1985 1,890 185 0.2
1986 2,197 219 0.2
1987 3,357 382 0.3
1988 3,709 248 0.3
1989 5,584 789 0.6 915 0.4
1990 7,047 603 0.4 732 0.4
1991 13,192 1,098 0.8 1,236 0.6
1992 21,380 2,020 1.9 3,563 2.1
1993 30,800 4,171 3.3 5,079 3.9
1994 46,600 6,477 3.6 5,837 3.6
1995 68,536 9,713 4.9 13,495 7.4
1996 100,480 15,200 7.8 20,968 11.2
1997 139,444 17,566 8.7 28,027 14.4
1998 188,515 20,165 9.9 28,448 14.5
1999 269,699 26,214 12.9 40,088 20.3
2000 369,628 36,052 11.8 49,296 24.2
2001 483,968 44,317 14.2 61,197 29.1
2002 601,295 53,568 16.6 71,370 33.5
2003 730,913 56,139 17.0 83,097 38.8
2004 787,126 54,074 17.7 73,477 36.7
2005 809,861 47,177 16.9 68,774 37.1
2006 847,516 58,388 24.1 69,712 42.1
2007 888,473 62,024 28.1 52,379 35.6
2008 907,500 58,228 27.6 71,411 50.6
2009 955,119 66,155 32.6 99,494 71.7
2010 996,327 71,015 36.0 71,344 52.9
2011 1,072,014 66,781 34.1 78,818 57.7
2012 1,197,129 72,363 39.8 91,542 70.4
2013 1,280,929 76,943 44.8 65,349 51.8
2014 1,409,333 79,362 47.0 92,850 74.1
2015 1,513,923 77,798 47.0 109,778 89.8
2016 1,595,197 80,610 48.3 90,485 76.7
2017 1,660,750 102,830 69.2 107,936 97.0
Notes
Adjustments to statutory numbers
1. Where appropriate, the earnings per share (EPS), as disclosed
in thestatutory accounts, have been recalculated to take account of
share splits,the issue of new shares and capitalisation issues.
2. Free cash flow per share excludes dividends paid which were
included in the free cash flow calculations in the annual report
and accounts for theyears 1995-2000.
3. The weighted average number of shares, EPS and free cash flow
per share include those shares held in trust for employee share
schemes.
4. Before 2005, the accounts were prepared under UKGAAP. All
accounts from 2005 to date have been prepared under IFRS
Like-for-like sales increased by 4.0% (2016: 3.4%), with total
sales of GBP1,660.8m, an increase of 4.1% (2016: 5.4%).
Like-for-like bar sales increased by 3.1% (2016: 3.3%), food sales
by 5.7% (2016: 3.5%) and slot/fruit machine sales decreased by 1.2%
(2016: decreased by 2.2%). Like-for-like hotel room sales increased
by 9.9% (2016: 9.7%) - although they continue to be a small
percentage of overall sales.
Operating profit before exceptional items increased by 17.1% to
GBP128.5m (2016: GBP109.7m). The operating margin, before
exceptional items, increased to 7.7% (2016: 6.9%). The overall
performance was helped by improved sales, lower utility and
interest costs, and the sale of some lower-margin pubs. These
factors helped to counter cost increases in labour of 4.5%, as well
as in other areas, including repairs and taxes.
Profit before tax and exceptional items increased by 27.6% to
GBP102.8m (2016: GBP80.6m), with a contribution from property
profits of GBP2.8m (2016: GBP5.3m). Earnings per share (including
shares held in trust by the employee share scheme), before
exceptional items, were 69.2p (2016: 48.3p). Net interest was
covered 4.6 times by operating profit before interest, tax and
exceptional items (2016: 3.3 times). Total capital investment was
GBP187.5m in the period (2016: GBP124.8m), with GBP46.9m invested
in new pubs and extensions to existing pubs (2016: GBP55.2m),
GBP65.9m on existing pubs and IT infrastructure (2016: GBP33.5m)
and GBP88.6m on the acquisition of freehold 'reversions', pubs
where Wetherspoon was already a tenant (2016: GBP36.1m). The
capital expenditure numbers differ slightly from the cash outflows,
owing to changes in working capital.
Exceptional items totalled GBP20.9m (2016: GBP5.7m). These
included an GBP18.4m loss on disposal and an impairment charge of
GBP8.4m for closed sites, underperforming pubs and onerous leases.
During the year, the company received GBP0.4m in compensation in
respect of a transfer of interest-rate swaps between two financial
institutions, which has been treated as an exceptional item.
In addition, there were GBP5.5m of exceptional tax credits,
mainly as a result of a reduction in the UK average corporation tax
rate, which has the effect of creating an exceptional tax credit
for future years. The total cash effect of these exceptional items
resulted in a cash inflow of GBP12.2m, owing to the proceeds from
pub disposals.
Free cash flow, after an outflow of GBP58.6m on existing pubs
(2016: GBP33.5m), GBP10.4m in respect of share purchases for
employees (2016: GBP6.9m) and payments of tax and interest,
increased by GBP17.4m to GBP107.9m (2016: GBP90.5m). The increase
resulted from a working capital inflow of GBP11.2m in the year
compared with an outflow of GBP9.6m in 2016. Free cash flow per
share was 97.0p (2016: 76.7p).
Dividends and return of capital
The board proposes, subject to shareholders' approval, to pay a
final dividend of 8.0p per share (2016: 8.0p per share), on 30
November 2017, to those shareholders on the register on 27 October
2017, giving a total dividend for the year of 12.0p per share
(2016: 12.0p per share). The dividend is covered 4.2 times (2016:
3.6 times).
In view of the high level of capital expenditure and the
potential for advantageous investments, the board has decided to
maintain the dividend at its current level for the time being.
During the year, 4,656,300 shares (representing 4.1% of the
issued share capital) were purchased by the company for
cancellation, at a total cost of GBP43.9m, including stamp duty,
representing an average cost per share of 943p.
Over the last 11 years, my shareholding has increased from 21.2%
to 31.7%, as a results of the company's share buybacks. As with
last year, the company is again considering seeking a rule 9
'whitewash', under UK City Code on Takeover and Mergers, allowing
further buybacks.
Financing
As at 30 July 2017, the company's total net debt, including bank
borrowings and finance leases, but excluding derivatives, was
GBP696.3m (2016: GBP650.8m), an increase of GBP45.5m. Factors which
have led to the increase in debt are expenditure on new pubs and
extensions of GBP40.3m, expenditure on existing pubs of GBP58.6m,
the acquisition of freeholds of GBP88.6m, share buybacks of
GBP28.4m (excluding GBP15.5m in respect of shares purchased at the
end of the financial year and settled post year-end) and dividend
payments of GBP13.4m. Year-end net-debt-to-EBITDA was 3.39 times
(2016: 3.47 times).
As at 30 July 2017, the company had GBP163.9m (2016: GBP189.6m)
of unutilised banking facilities and cash balances, with total
facilities of GBP860m (2016: GBP840.0m). The company's existing
interest-rate swap arrangements remain in place.
It is anticipated that interest costs in the current year will
be approximately the same as those of last year.
Corporation tax
The overall tax charge (including deferred tax and excluding the
one-off benefit of the tax rate change) on profit before
exceptional items is 25.1% (2016: 29.4%). This fall is due mainly
to a decrease in the deferred tax liability, resulting from
accelerated capital allowances on fixed-asset expenditure.
VAT equality
As we have previously stated, we believe that pubs are taxed
excessively and that the government would generate more tax revenue
and jobs, if it were to create tax equality among supermarkets,
pubs and restaurants. Supermarkets pay virtually no VAT in respect
of food sales, whereas pubs pay 20%. This has enabled supermarkets
to subsidise the price of alcoholic drinks, widening the price gap
between the on and off trade, to the detriment of pubs and
restaurants.
Pubs have lost 50% of their beer sales to supermarkets since the
1970s as VAT has climbed from 8% to 20%.
It makes no sense for the government to treat supermarkets more
leniently than pubs, since pubs generate far more jobs per pint or
meal than supermarkets do, as well as far higher levels of tax.
Pubs also make an important contribution to the social life of many
communities and create better visibility and control of consumers
of alcoholic drinks.
The campaign for tax equality with supermarkets has particular
significance for MPs and residents of less affluent areas, since
the tax differential is more important there. Where people can less
afford to pay the difference in prices between the on and off
trade, there are fewer pubs, coffee shops and restaurants, with a
corresponding reduction in employment and an increase in
high-street dereliction.
The government is actively considering ideas for generating jobs
and economic activity, especially in areas outside the affluent
south of the country - VAT equality, as the trade organisations
BBPA and ALMR have demonstrated, is a very efficient and sensible
method of helping to achieve these objectives. Tax equality also
accords with the underlying principle of fairness in applying taxes
to different businesses.
Contribution to the economy
Wetherspoon is proud to pay its share of tax and, in this
respect, is a major contributor to the economy. In the year under
review, we paid total taxes of GBP694.6m, an increase of GBP22.3m,
compared with the previous year, which equates to approximately
41.8% of our sales.
This equates to an average payment per pub of GBP768,400 per
annum or GBP14,500 per week.
2017 2016
GBPm GBPm
VAT 323.4 311.7
Alcohol duty 167.2 164.4
PAYE and NIC 96.2 95.1
Business rates 53.0 50.2
Corporation tax 20.7 19.9
Machine duty 10.5 11.0
Climate change
levy 9.7 8.7
Stamp duty 5.1 2.6
Carbon tax 3.4 3.6
Landfill tax 2.5 2.2
Fuel duty 2.1 2.1
Premise licence
and TV licences 0.8 0.8
Total tax 694.6 672.3
Pre-exceptional
profit after tax 77.0 56.9
Tax per pub (GBP000) 768.4 705.0
Tax as % of sales 41.8% 42.1%
Profit after tax
as % of sales 4.6% 3.6%
Corporate governance
Last year, this statement contained a summary of criticisms of
corporate governance guidelines. Similar views have been expressed
in Wetherspoon's annual reports for several years and there have
been almost no objections or dissent from shareholders, or other
interested parties.
As it stands today, one danger of these faulty guidelines is
that many quoted businesses have no board directors who were
present in the company during the last financial crisis - an
undesirable and dangerous state of affairs.
'It's a people thing'
As in previous years, the company has tried to improve as many
areas of the business as possible, on a week-to-week basis,
invariably in mundane areas of our operations. This concentration
on the 'nuts and bolts' is far more important than issues such as
'strategy', with which most boards are preoccupied. Frequent calls
on pubs by senior executives, the encouragement of ideas and
criticisms from pub staff and customers, and the involvement of pub
and area managers, among others, in weekly decisions, are the keys
to success. An example of the success of this approach is that we
have 818 pubs rated on the Food Standards Agency's website. The
average score is 4.89, with 91.8% of the pubs achieving a top
rating of five and 6.2% receiving a rating of four. We believe this
to be the highest average rating for any substantial pub company.
In the separate Scottish scheme, which records either a 'pass' or a
'fail', all of our 66 pubs have passed.We continue to emphasise the
importance of training. For some years, we have run a three-week
catering academy for kitchen managers, with 1,371 people having
completed these courses. We
have recently started a similar academy for cellar and coffee
training, so that we can improve quality in these areas.
We paid GBP43.7m to employees in the year in respect of bonuses
and free shares, an increase of GBP10.7m compared with the previous
year, of which 96% was paid to staff below board level and 74% was
paid to staff working in our pubs.
The company has been recognised as a Top Employer UK (2017) for
the 14th consecutive year. The Top Employers Institute said:
"Our comprehensive independent research revealed that J D
Wetherspoon provides exceptional employee conditions, nurtures and
develops talent throughout all levels of the organisation and has
demonstrated its leadership status in the HR environment, always
striving to optimise its employment practices and to develop its
employees."
In the field of charity, thanks to the generosity and work of
our dedicated customers, pub and head-office teams, we continue to
raise record amounts of money for CLIC Sargent, supporting young
cancer patients and their families. In the last year, we raised
approximately GBP1.8m, bringing the total raised to over GBP14m -
more than any other corporate partner has raised for this
charity.
Property
The company opened 10 pubs during the year, with 41 closed,
resulting in a trading estate of 895 pubs at the financial year
end.The average development cost for a new pub (excluding the cost
of freeholds) was GBP2.3m, compared with GBP2.5m a year ago. The
full-year depreciation charge was GBP73.9m (2016: GBP72.2m). We
currently intend to open about 10-15 pubs in the year ending July
2018.
We have sold, or terminated the leases of, 127 pubs, in the last
2 years, at a loss of approximately GBP55m, including previously
reported impairments. Some mistakes are inevitable in site
selection, but we hope to learn from these experiences, in order to
try to avoid similar mistakes in the future.
Property litigation
As previously reported, Wetherspoon agreed on an out-of-court
settlement with developer Anthony Lyons, formerly of property
leisure agent Davis Coffer Lyons, in 2013, and received
approximately GBP1.25m from Mr Lyons.
The payment relates to litigation in which Wetherspoon claimed
that Mr Lyons had been an accessory to frauds committed by
Wetherspoon's former retained agent Van de Berg and its directors
Christian Braun, George Aldridge and Richard Harvey. Mr Lyons
denied the claim - and the litigation was contested.
The claim related to properties in Portsmouth, Leytonstone and
Newbury. The Portsmouth property was involved in the 2008/9 Van de
Berg case itself.
In that case, Mr Justice Peter Smith found that Van de Berg, but
not Mr Lyons (who was not a party to the case), fraudulently
diverted the freehold from Wetherspoon to Moorstown Properties
Limited, a company owned by Simon Conway. Moorstown leased the
premises to Wetherspoon. Wetherspoon is still a leaseholder of this
property - a pub called The Isambard Kingdom Brunel.
The properties in Leytonstone and Newbury (the other properties
in the case against Mr Lyons) were not pleaded in the 2008/9 Van de
Berg case. Leytonstone was leased to Wetherspoon and trades today
as The Walnut Tree public house. Newbury was leased to Pelican plc
and became Café Rouge.
As we have also reported, the company agreed to settle its final
claim in this series of cases and accepted GBP400,000 from property
investor Jason Harris, formerly of First London and now of First
Urban Group. Wetherspoon alleged that Harris was an accessory to
frauds committed by Van de Berg. Harris contested the claim and has
not admitted liability
Before the conclusion of the above cases, Wetherspoon also
agreed on a settlement with Paul Ferrari, of London estate agent
Ferrari Dewe & Co, in respect of properties referred to as the
'Ferrari Five' by Mr Justice Peter Smith.
Current trading and outlook
Most 'PLCs' are expected to comment, in their results'
statements, on the UK's prospects outside of the EU and on the
likely impact on their individual companies.
It is my view that the main risk from the current Brexit
negotiations is not to Wetherspoon, but to our excellent EU
suppliers - and to EU economies.
As the public instinctively understands, but few academics,
economists, boardrooms and City institutions grasp, democracy is
the strongest economic steroid - hence the astonishing rise of
countries like Japan, Singapore and South Korea, after its
adoption. A fascinating insight into the thought processes of many
pro-Remain 'elites' can be found in an article in The Spectator
(appendix 2 below) by Professor Robert Tombs of Cambridge
University.
In the current negotiations, democratically-elected politicians
from the UK are dealing with unelected oligarchs from the EU. Since
the oligarchs are not subject to judgement at the ballot box, their
approach is dictated by more sectarian factors - the interests and
ideology of EU apparatchiks like them, rather than residents or
businesses from EU countries.
As a result of their current posturing and threats,
EU negotiators are inevitably encouraging importers like
Wetherspoon to look elsewhere for supplies. This process is
unlikely to have adverse effects on the UK economy, as companies
will be able to switch to suppliers representing the 93% of the
world's population which is not in the EU, but this evolution will
eventually be highly damaging to the economy of the EU.
Wetherspoon is extremely confident that it can switch from EU
suppliers, if required, although we would be very reluctant to
initiate such actions.
It is my view that Juncker, Barnier, Selmayr, Verhofstadt and
others need to take a wise-up pill in order to avoid causing
further economic damage to struggling economies like Greece,
Portugal, Spain and Italy - where youth unemployment, in
particular, is at epidemic levels.
There seems to be little genuine appetite for a free-trade deal
from the Brussels bureaucracy, so EU companies are, paradoxically,
reliant on the goodwill of UK consumers, who are likely to prefer
tariff-free goods in the future from non-EU countries, which are
generally in favour of free trade, rather than deals with companies
which are subject to the diktat of those who wish to punish the
UK.
I have written an article dealing with several issues related to
Brexit, which can be found in the latest edition of Wetherspoon
News - and is included below in appendix 1.
Since the year end, Wetherspoon's like-for-like sales have
continued to be encouraging and have increased by 6.1%. This is a
positive start, but is for a few weeks only - and is very unlikely
to continue for the rest of the year. Comparisons will become more
stretching - and sales, which were very strong in the summer
holidays, are likely to return to more modest levels. It is
anticipated that like-for-like sales of around 3-4% will be
required in order to match last year's profit before tax. We will
provide updates as we progress through the year. We currently
anticipate a trading outcome for the current financial year in line
with our expectations.
Tim Martin
Chairman
14 September 2017
Appendix 1 - Tim's Viewpoint, Wetherspoon News, Autumn 2017
"Democracy is the key to prosperity and freedom
Do economists at the CBI, The Times and the FT model themselves
on Edmund Blackadder, asks Tim Martin
In the last edition of Wetherspoon News, I quoted Cambridge
professor Simon Baron-Cohen, who correctly said that "each example
of the erosion of democracy leads to an even greater erosion of
human rights".
Like the great majority of Oxbridge graduates - albeit with many
notable exceptions - the professor is an ardent EU supporter, even
so. He appears, subconsciously, to exempt the undemocratic EU from
criticism. I also quoted Financial Times journalist Edward Luce,
who criticised the last two American presidents for failing to
support the 'democracy promoting creed' in their conduct of foreign
relations.
Unelected
Yet the Financial Times fails to apply the same criteria to the
EU, with its unelected presidents, its court which is not subject
to democratic control and its pseudoparliament, whose MPs cannot
even initiate legislation. In a previous edition of Wetherspoon
News, we quoted in full a Financial Times article by Peter
Mandelson, which appeared shortly after the referendum. The article
explained that Mandelson, Cameron and Osborne, the architects of
the Remain campaign, Oxbridge graduates all, decided not to deal
directly with questions about issues such as the absence of
democracy in the EU. Instead, when asked, they decided to avoid the
question by 'pivoting' to the economy, with support from
discredited organisations such as the IMF, the OECD, the Treasury
and their ilk. This blindness to, or evasion of, the EU's evident
democratic shortfalls recalled the strange events of Britain's
debate about the euro 15 years or so ago.
Overwhelming
Then, the Financial Times the CBI, most boardrooms, the majority
of MPs, Blair, Mandelson, Heseltine, Clarke and the overwhelming
majority of economists, supported the UK's euro application with
religious fervour, even though its predecessor, the Exchange Rate
Mechanism, had caused economic mayhem only a few years before. The
same paradox was evident then. The most highly educated lent
support to a currency which lacked a basic ingredient: a
government. The new currency could only work by transferring normal
democratic powers over interest rates, budgets and taxation to
unelected bureaucrats. Or perhaps autocrats is a better word.
Charlie Munger, a partner of the world's greatest investor, Warren
Buffet, may have an answer. Munger's view, which explains the often
idiotic behaviour of financial markets, is that intelligent people
suffer from extremely poor judgement when they become ideological,
whether through religion or other deep beliefs. And, for some
people, the EU is a semi-religious project. Gillian Tett, a
Financial Times journalist, reached a similar conclusion in trying
to assess why so many in the tightknit circle of business, media
and academia got it so badly
wrong over the euro. 'Groupthink' was her explanation, which is
perhaps not too different from Munger's analysis.
Referendum
Leaving aside these theories, the fact is that the UK voted to
leave the EU in the referendum, article 50 was triggered by an
overwhelming majority of MPs and 85 per cent of MPs were recently
elected on the basis of manifestos which accepted the referendum
result. However, the gloom and disruption of the diehard Remainers
in the media, parliament and boardrooms have reached epidemic
proportions. The CBI, representing big British business, is one of
the worst offenders. Its boss, Carolyn 'we're all doomed'
Fairbairn, set the tone with her Blackadder-style warning, before
the referendum, that "a dark cloud of uncertainty is looming over
global growth ... particularly around the outcome of the EU
referendum". Closet Remainer David Smith of the Sunday Times is not
to be outdone in apocalyptic prose: "Slower growth has been staring
us in the face since sterling's post-referendum plunge guaranteed a
squeeze on household real incomes and a cloud of renewed
uncertainty descended on business." Well, David, it hasn't
descended on our business, nor on most businesses, from what I can
tell.
Economy
Since the referendum, the economy has generated a stunning
300,000 new jobs, employment is at its highest ever level, the
stock market has risen by around 20 per cent and household incomes,
as at the end of the first quarter of this year, were at a record
high. The Financial Times is the epicentre of gloom. The first
sentence of a July editorial reads: "The uncertainty surrounding
Brexit means the UK economy is set on a journey with no compass."
Surely, this was written by Edmund Blackadder. If the editor of the
FT is Blackadder, Baldrick is the FT's economist Martin Wolf, who
darkly prophesied that "Britain is incapable of managing Brexit and
calamity will follow". Not to be outdone, the Remain- supporting
Times is full of predictions of doom and despair. The doyen of
doomsters is Matthew Parris, a former conservative MP. In a bleak
and doom-laden article on his return from holidays, he said: "I
left Spain feeling ashamed to be British. I returned to England
ashamed to be a conservative." Stroll on, Matthew. Take it easy,
old chap. The sun will still rise in the east tomorrow morning.
Perhaps the most comic aspect of gloomy media reports on Brexit
negotiations is the constant reference to 'cliff-edges'. A recent
edition of the FT had more examples of cliff-edges than the Cornish
coastal path.
Phenomena
Similar phenomena occurred during the battle to save the country
from the euro. In almost every debate I had during that period,
euro proponents said "the euro train is leaving the station and the
UK is not on it" or intoned similar metaphors. When critics start
talking of cliff-edges and compasses, it usually means that
rational arguments are running short. The most melodramatic recent
requests have come from business organisations like the CBI and the
Institute of Directors. They want the government to clarify and
publish its objectives in the current EU negotiations. The obvious
problem with this approach is that manifesting a clear desire for a
particular outcome will result in the EU upping the price - or
vetoing the proposal. Necessity never made a good bargain, as
Benjamin Franklin said. People like Carolyn Fairbairn, and the
majority of economists, who insist on a 'deal' are, in effect,
sabotaging the UK's negotiating position. As Mervyn King, the
former governor of the Bank of England, has recently pointed out:
"If you're going to have any success in this negotiation, you need
to have a fallback position which the other side understands and
thinks is credible. It's not the first choice, but we have to have
an option, otherwise the other side won't listen. This ought to be
something people can agree on... whether they voted for Brexit or
not." Mr King understands that the government needs to be able to
say: "We're happy to agree a free trade deal, if the European
negotiators are agreeable, but we are more than happy to trade
using World Trade Organisation rules, if we can't agree."
Successfully
That's the basis on which we trade successfully with 93 per cent
of the world which is not in the EU. Our most successful engineer,
James Dyson, adopts a similar approach to Mervyn King's and states
that relying on WTO rules would be "no big deal". In any event, as
we did in the pre-referendum edition of Wetherspoon News, we have
included a section from pages 50 to 58 with four articles from
optimistic Brexiteers and four from gloomy Remainers. Once you've
digested their views, you can make up your own mind as to how we'll
do. I think democracy is the key to prosperity and freedom, and a
lot of the other points which have been made are hogwash. But you
can decide. Indeed, in a democracy, you WILL decide."
Tim Martin
Appendix 2 - Cambridge University professor, Robert Tombs,
Writing in The Spectator, says:
"The myth of Britain's decline
Our glory days are not over - they're in full swing
On the anniversary of Britain voting to leave the European
Union, the Principal of Hertford College, Oxford, found some words
to sum it up. 'An entire society crucified by the delusional
ambitions of Brexiteers chasing moonshine,' wrote Will Hutton. 'An
anniversary to mourn.' One might agree or disagree with his
position on the European Union, but has British society really
committed suicide? It's a theme we have heard rather a lot
recently: that Britain is a mess, an international laughing stock,
leader-less and futureless. The case is normally made by Brits.
Rapid shocks - terrorism, the surprising election result, the
Grenfell Tower disaster - have inspired forebodings just as the
Brexit negotiations are beginning. This is not just the cry of
shell-shocked Tories or traumatised Remainers; it goes deeper.
We're seeing the revival of an old and familiar malady: declinism',
a periodic fear that the nation has declined and is declining from
some earlier time of strength, cohesion and success. Declinism is a
syndrome: it assumes a combination of moral, political and economic
failures. Britain suffered a bout of it in the 1880s when German
competition in manufactured goods was first felt. It came back in
the 1960s and 1970s, coloured by economic worries, rapid
decolonisation and a perception of dwindling power and influence in
every field.
Today, it has re-emerged as a core anti-Brexit sentiment. With a
familiar mixture of despair (from the right) and glee (from the
left), we are being told that we must eschew 'nostalgia' and
'post-imperial delusions', and 'wake up to reality' as 'a small
offshore island', while the big strong powers of the European Union
put us in our place, leaving us a stark choice between accepting
the terms they dictate or facing economic and political disaster.
Some germ of declinism has been bred into all of us. Who would deny
that Britain is no longer the great power it once was? Well,
speaking as a historian, I would. Declinism is at best a distortion
of reality, and mostly mere illusion. But so important is it in
shaping our view of ourselves and our relations with the world that
it demands sceptical scrutiny. It rests, above all, on two
assumptions. First, that we have long been failing economically.
Second, that we have suffered a loss of sheer power and hence
influence in the world.
In the context of the Brexit debate, the conclusions are that
the EU, 'our largest market', is our economic crutch; and that
outside the EU club our feeble power and influence will dwindle to
insignificance. We will be comparable, declinists scoff, to Albania
or North Korea.
The belief in economic decline is a mixture of illusion and
misunderstanding. Britain has been relatively wealthy at least
since the Middle Ages, and industrial pioneers gave us a temporary
dominance in manufacturing during the mid 19th century. This was a
brief and unique episode. Naturally, other countries adopted
British technology - helped by British capital and expertise - and
began to catch up. This was desirable, as well as natural, because
it provided richer markets for British goods and services and
valuable investment opportunities for British savers.
Since the 1880s, pessimists have always tended to compare
British economic performance at any moment with those most rapidly
catching up. When postwar European integration began in the 1950s,
Italy, France and Germany were the most spectacular catchers-up,
recovering from their wartime devastation and shifting their large
and relatively unproductive agricultural sectors into industry.
This gave temporary 'windfall growth' that Britain could not equal,
having no large agricultural sector to modernise. But an uncritical
comparison of growth rates was mistaken for evidence of British
economic failure. As early as 1953, an official report warned of
'relegation of the UK to the second division'. This was the prime
cause of our desperate pleas to join the Common Market in the 1960s
and 1970s: Britain was 'the sinking Titanic', as one of Edward
Heath's advisors put it, and Europe the lifeboat.
Ironically, just as Britain joined in the early 1970s, European
catching-up ended, and so did its seemingly superior economic
prowess. In short, Britain's long-term economic decline in relation
to Europe never happened. Supporters of the EU nevertheless still
maintain that membership rescued the British economy in the 1970s
and remains vital to shoring it up today.
In fact, British economic performance was never significantly
affected by EU membership. Growth did not increase after joining
the Common Market, essentially because trade was diverted from
other markets to Europe just as Europe's own postwar growth went
into long-term deceleration. Despite the hopes and political
efforts expended on creating the single market (not least by
Margaret Thatcher), it has not proved very successful in increasing
internal EU trade, and has never been fully extended into services,
Britain's main strength. Due to both the greater dynamism of global
markets and the problems of the EU itself, Britain's trade with
Europe has been declining sharply in importance for two decades.
This was predicted to continue even if Britain had stayed in the
EU. The recent overdue depreciation of an overvalued pound will
provide some stimulus to our exports both inside and outside
Europe, whatever the nature of the post-Brexit deal, and would more
than compensate for possible tariffs.
Over the long term, membership (or not) of the EU has made no
discernible difference to our economic performance. Britain's
increase in prosperity (growth in per capita GDP using purchasing
power parity) has almost exactly kept pace with that of the United
States ever since 1945, whether outside or inside 'Europe'. The
belief that leaving the EU must mean long-term economic decline
therefore has no rational basis, just as the economic reports
predicting that a vote for Brexit would mean immediate financial
misery had no rational basis either.
The second element of declinism concerns the loss of sheer power
and importance in the world. This seems as obvious to the stoutest
Tory as to the most mocking Guardianista. After all, Churchill
himself was haunted by it. Yet this too is largely, if not wholly,
an illusion based on comparing a pessimistic view of our current
state (whenever that might be - probably any time since the 1890s)
with a highly inflated view of past power: usually the High
Victorian age, or else round about the time of the battle of El
Alamein.
The story of Britain being on a long slide to irrelevance always
revolves round decolonisation. It's quite true that the British
empire is 'one with Nineveh and Tyre' - but so are all the other
empires. No state has replaced Britain as the great global imperial
power: empires are no longer possible or desirable, as Britain
realised in the 1960s. Though a source of prestige (and of constant
trouble - 'a millstone round our necks,' said Disraeli), it's
doubtful whether the empire was a source of wealth or power to
Britain. Overall, it cost more than it brought in, especially after
Britain turned to universal free trade in the 1840s, and colonies
ceased to be an exclusive economic domain.
The empire's power was used up in defending itself: it was, as
one historian aptly puts it, 'a brontosaurus with huge, vulnerable
limbs which the central nervous system had little capacity to
protect, direct or control.' Throughout its imperial heyday,
Britain had naval power, but on land was no match for Europe's
great powers or even its smaller ones. It was constantly worried by
threats from France, Russia, Germany and even the USA to its
economy, its empire and its home islands.
What of today? Britain is more secure from major external threat
than for half a millennium. Taking a long view (say the last three
centuries) it remains what it always has been - one of the
half-dozen or so strongest states in the world, and one of the most
global in its attachments, its vision, and its trade. Within this
leading group of states, Britain has not declined but has actually
advanced, being now more powerful than its ancient rivals France,
Germany and Russia. The Cambridge international relations
specialist Brendan Simms puts Britain even higher. Taking into
account economic and military potential, population, 'soft power',
diplomatic influence, political resilience and self-determination,
he judges it the world's third great power after the USA and China,
and Europe's only truly independent force.
Power is also based on intangibles such as self-confidence, a
clear strategy and determination, and here we may be lacking.
Russia, with an economy the same size as Spain's, behaves like a
superpower in the Middle East and is treated as one. But we fear we
cannot even negotiate a mutually beneficial trade agreement with
the EU. At least as much as by age and education, our attitudes
seem to be determined by the division between confidence and
self-doubt.
Declinism has always been a form of insularity, obsessed with
Britain's failings, but ignorant of those elsewhere. Today,
unemployment is lower here than among most of our neighbours. Crime
is falling. Schools are improving. We have evident problems too.
But to see only weaknesses, and to diagnose them as part of a
syndrome of decline, is to cling to a distorted view of the world
and of our place within it. At worst, this undermines our position,
and risks bringing about the very outcome it fears.
Brexit was a vote of confidence in our ability to shape our
future as an independent democratic nation - a choice that few of
our European neighbours feel they still have. We should not allow
declinist panics to confuse the outcome."
Robert Tombs, Cambridge University professor
The Spectator 8 July 2017
INCOME STATEMENT for the 53 weeks ended 30 July 2017
J D Wetherspoon plc,
company number: 1709784
Notes 53 weeks 53 weeks 53 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended ended
30 July 30 July 30 July 24 July 24 July 24 July
2017 2017 2017 2016 2016 2016
Before Exceptional After Before Exceptional After
exceptional items exceptional exceptional items exceptional
items (note items items (note items
4) 4)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 1 1,660,750 - 1,660,750 1,595,197 - 1,595,197
Operating costs (1,532,242) - (1,532,242) (1,485,470) - (1,485,470)
Operating profit 2 128,508 - 128,508 109,727 - 109,727
Property gains/(losses) 3 2,807 (26,868) (24,061) 5,335 (14,561) (9,226)
Finance income 6 72 402 474 116 - 116
Finance costs 6 (28,557) - (28,557) (34,568) - (34,568)
Profit before
tax 102,830 (26,466) 76,364 80,610 (14,561) 66,049
Income tax expense 7 (25,846) 5,541 (20,305) (23,689) 8,846 (14,843)
Profit for the
year 76,984 (20,925) 56,059 56,921 (5,715) 51,206
Earnings per
share (p)
- Basic1 8 70.8 (19.3) 51.5 49.5 (5.0) 44.5
- Diluted2 8 69.2 (18.8) 50.4 48.3 (4.9) 43.4
Operating profit
per share (p)
- Diluted2 8 115.5 - 115.5 93.1 - 93.1
STATEMENT OF COMPRAHENSIVE INCOME for the 53 weeks ended 30 July
2017
Notes 53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Items which may be reclassified
subsequently to profit or loss:
Interest-rate swaps: gain/(loss)
taken to other comprehensive income 24,581 (23,504)
Tax on items taken directly to
other comprehensive income 7 (4,814) 3,432
Currency translation differences 2,104 4,265
Net gain/(loss) recognised directly
in other comprehensive income 21,871 (15,807)
Profit for the year 56,059 51,206
Total comprehensive income for
the year 77,930 35,399
1 Calculated excluding shares held in trust.
2 Calculated using issued share capital which includes shares
held in trust.
CASH FLOW STATEMENT for the 53 weeks ended 30 July 2017
J D Wetherspoon plc,
company number: 1709784
Free Free
cash cash
flow1 flow1
Notes 53 weeks 53 weeks 52 weeks 52 weeks
ended ended ended ended
30 July 30 July 24 July 24 July
2017 2017 2016 2016
GBP000 GBP000 GBP000 GBP000
Cash flows from operating
activities
Cash generated from
operations 9 224,403 224,403 181,836 181,836
Interest received 57 57 136 136
Net exceptional finance
income 402 -
Interest paid (26,834) (26,834) (31,182) (31,182)
Corporation tax paid (20,683) (20,683) (19,917) (19,917)
Net cash inflow from
operating activities 177,345 176,943 130,873 130,873
Cash flows from investing
activities
Purchase of property,
plant and equipment (45,056) (45,056) (28,407) (28,407)
Purchase of intangible
assets (13,502) (13,502) (5,104) (5,104)
Investment in new pubs
and pub extensions (40,285) (54,118)
Freehold reversions (88,603) (36,083)
Purchase of lease premiums - (1,091)
Proceeds of sale of property,
plant and equipment 19,620 22,520
Net cash outflow from
investing activities (167,826) (58,558) (102,283) (33,511)
Cash flows from financing
activities
Equity dividends paid 11 (13,352) (14,190)
Purchase of own shares
for cancellation (28,445) (53,580)
Purchase of own shares
for share-based payments (10,449) (10,449) (6,877) (6,877)
Advances under bank
loans 10 47,236 10,314
Finance lease principal
payments - (2,051)
Net cash inflow/(outflow)
from financing activities (5,010) (10,449) (66,384) (6,877)
Net change in cash and
cash equivalents 10 4,509 (37,794)
Opening cash and cash
equivalents 46,135 83,929
Closing cash and cash
equivalents 50,644 46,135
Free cash flow 8 107,936 90,485
Free cash flow per ordinary
share 8 97.0p 76.7p
1 Free cash flow is a measure not required by accounting
standards; a definition is provided in our accounting policies.
BALANCE SHEET as at 30 July 2017
J D Wetherspoon plc, company number:
1709784
Notes 30 July 24 July
2017 2016
GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 12 1,282,633 1,188,512
Intangible assets 13 29,691 27,051
Investment property 14 7,550 7,605
Other non-current assets 15 8,272 9,725
Derivative financial instruments 11,380 -
Deferred tax assets 7 6,612 11,426
Total non-current assets 1,346,138 1,244,319
Assets held for sale 1,524 950
Current assets
Inventories 21,575 19,168
Receivables 21,029 27,616
Cash and cash equivalents 50,644 46,135
Total current assets 93,248 92,919
Total assets 1,440,910 1,338,188
Liabilities
Current liabilities
Borrowings (17,461) (112)
Derivative financial instruments - (79)
Trade and other payables (313,525) (266,523)
Current income tax liabilities (12,159) (8,247)
Provisions (5,175) (4,463)
Total current liabilities (348,320) (279,424)
Non-current liabilities
Borrowings (729,487) (696,783)
Derivative financial instruments (50,276) (63,398)
Deferred tax liabilities 7 (69,731) (74,441)
Provisions (1,890) (3,387)
Other liabilities (12,383) (13,307)
Total non-current liabilities (863,767) (851,316)
Net assets 228,823 207,448
Equity
Share capital 2,180 2,273
Share premium account 143,294 143,294
Capital redemption reserve 2,251 2,158
Hedging reserve (32,284) (52,051)
Currency translation reserve 4,899 2,340
Retained earnings 108,483 109,434
Total equity 228,823 207,448
The financial statements approved by the board of directors and
authorised for issue on 14 September 2017, are signed on its behalf
by:
John Hutson Ben Whitley
Director Director
STATEMENT OF CHANGES IN EQUITY
J D Wetherspoon plc,
company number: 1709784
Notes Share Share Capital Hedging Currency Retained Total
capital premium redemption reserve translation earnings
account reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 26 July 2015 2,387 143,294 2,044 (31,979) (2,182) 109,329 222,893
Total comprehensive
income (20,072) 4,522 50,949 35,399
Profit for the year 51,206 51,206
Interest-rate swaps:
cash flow hedges (23,504) (23,504)
Tax taken directly
to comprehensive income 7 3,432 3,432
Currency translation
differences 4,522 (257) 4,265
Purchase of own shares
for cancellation (114) 114 (39,393) (39,393)
Share-based payment
charges 9,556 9,556
Tax on share-based
payment 60 60
Purchase of own shares
for share-based payments (6,877) (6,877)
Dividends 11 (14,190) (14,190)
At 24 July 2016 2,273 143,294 2,158 (52,051) 2,340 109,434 207,448
Total comprehensive
income 19,767 2,559 55,604 77,930
Profit for the year 56,059 56,059
Interest-rate swaps:
cash flow hedges 24,581 24,581
Tax taken directly
to comprehensive income 7 (4,814) (4,814)
Currency translation
differences 2,559 (455) 2,104
Purchase of own shares
for cancellation (93) 93 (43,887) (43,887)
Share-based payment
charges 10,711 10,711
Tax on share-based
payment 422 422
Purchase of own shares
for share-based payments (10,449) (10,449)
Dividends 11 (13,352) (13,352)
At 30 July 2017 2,180 143,294 2,251 (32,284) 4,899 108,483 228,823
The balance classified as share capital represents proceeds
arising on issue of the company's equity share capital,
comprising 2p ordinary shares and the cancellation of shares
repurchased by the company.
The capital redemption reserve increased owing to the repurchase
of a number of shares in the year.
Shares acquired in relation to the employee Share Incentive Plan
and the Deferred Bonus Scheme are held in trust, until such time as
the awards vest. At 30 July 2017, the number of shares held in
trust was 2,458,000 (2016: 2,485,848), with a nominal value of
GBP49,160 (2016: GBP49,717) and a market value of GBP25,071,600
(2016: GBP20,035,935) and are included in retained earnings.
During the year, 4,656,300 shares were repurchased by the
company for cancellation, representing approximately 4.1% of the
issued share capital, at a cost of GBP43.9m, including stamp duty,
representing an average cost per share of 943p. At the year end,
the company had a liability for share purchases of GBP15.5m, which
will be settled during the current year, ended 29 July 2018.
Hedging gain/loss arises from the movement of fair value in the
company's financial derivative instruments, in line with the
accounting policy.
The currency translation reserve contains the accumulated
currency gains and losses on the long-term financing and balance
sheet translation of the overseas branch. The currency translation
difference reported in retained earnings is the restatement of the
opening reserves in the overseas branch at the current year end
currency exchange rate.
As at 30 July 2017, the company had distributable reserves of
GBP76.2m (2016: GBP57.4m).
NOTES TO THE FINANCIAL STATEMENTS
1. Revenue
Revenue disclosed in the income statement
is analysed as follows:
53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Sales of food, beverages, hotel rooms
and machine income 1,660,750 1,595,197
2. Operating profit - analysis of costs by nature
This is stated after charging/(crediting):
53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Concession rental payments 24,784 21,971
Minimum operating lease payments 44,828 51,260
Repairs and maintenance 66,219 54,924
Net rent receivable (1,422) (1,496)
Share-based payments (note 5) 10,711 9,556
Depreciation of property, plant and
equipment (note 12) 66,483 65,297
Amortisation of intangible assets
(note 13) 6,931 5,949
Depreciation of investment properties
(note 14) 55 62
Amortisation of other non-current
assets (note 15) 400 904
Auditors' remuneration 53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Fees payable for the audit of the
financial statements 197 186
Fees payable for other services:
- assurance services 32 31
Total auditors' fees 229 217
Analysis of continuing operations 53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Revenue 1,660,750 1,595,197
Cost of sales (1,470,273) (1,432,400)
Gross profit 190,477 162,797
Administration costs (61,969) (53,070)
Operating profit after exceptional
items 128,508 109,727
Included within cost of sales is GBP597.8m (2016: GBP596.3m)
related to cost of inventory recognised as expense.
3. Property (gains)/losses
53 weeks 53 weeks 53 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended ended
30 July 30 July 30 July 24 July 24 July 24 July
2017 2017 2017 2016 2016 2016
Before Exceptional After Before Exceptional After
exceptional items exceptional exceptional items exceptional
items (note items items (note items
4) 4)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Disposal of fixed
assets (615) 15,099 14,484 (4,866) 7,328 2,462
Additional costs
of disposal 25 3,262 3,287 63 1,149 1,212
Impairment of property,
plant and equipment - 7,607 7,607 - 4,809 4,809
Impairment of intangible
assets - - - - 239 239
Impairment of other
assets - 180 180 - 491 491
Onerous lease provision - 720 720 - 545 545
Other property gains (2,217) - (2,217) (532) - (532)
Total property (gains)/losses (2,807) 26,868 24,061 (5,335) 14,561 9,226
4. Exceptional items
53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Exceptional property losses
Disposal programme
Loss on disposal of pubs 18,361 8,477
Impairment property plant and
equipment 5,943 2,885
Impairment of other non-current
assets 141 491
Onerous lease reversal (1,319) (427)
Onerous lease provision 1,659 944
24,785 12,370
Other property losses
Impairment of property, plant
and equipment 1,664 1,924
Impairment of other non-current
assets 39 -
Impairment of intangible assets - 239
Onerous lease reversal (696) (949)
Onerous lease provision 1,076 977
2,083 2,191
Total exceptional property losses 26,868 14,561
Other exceptional items
Net exceptional finance income (402) -
(402) -
Total pre-tax exceptional items 26,466 14,561
Exceptional tax
Exceptional tax items - deferred
tax (note 7) (4,155) (8,363)
Tax effect on exceptional items (1,386) (483)
Total exceptional tax (5,541) (8,846)
Total exceptional items 20,925 5,715
Disposal programme
The company has offered several of its sites for sale. At the
year end, 45 (2016: 29) sites had been sold, including sites which
were closed in the previous year, five were classified as held for
sale and an additional three (2016: nine) sites have been closed
and remain unsold as part of the disposal programme.
In the table above, the costs classified as loss on disposal are
the losses on sold sites and associated costs to sale.
An impairment of GBP6,084,000 has been recognised for pubs which
have been closed or were in the process of being closed
at the year end.
The onerous lease provision relates to sites which have been
closed and made available for sale. A provision has been raised to
cover the rental costs for the estimated period required to dispose
of the sites.
4. Exceptional items (continued)
Other property losses
Property impairment relates to the situation in which, owing to
poor trading performance, pubs are unlikely to generate sufficient
cash in the future to justify their current book value. In the
year, an exceptional charge of GBP1,703,000 (2016: GBP2,163,000)
was incurred in respect of the impairment of assets as required
under IAS 36. This comprises an impairment charge of GBP2,530,000
(2016: GBP2,274,000), offset by impairment reversals of GBP827,000
(2016: GBP350,000).
The onerous lease provision relates to pubs for which future
trading profits, or income from subleases, are not expected to
cover the rent. The provision takes several factors into account,
including the expected future profitability of the pub and also the
amount estimated as payable on surrender of the lease, where this
is a likely outcome. In the year, GBP380,000 (2016: GBP28,000) was
charged net in respect of onerous leases.
All exceptional items listed above generated a net cash inflow
of GBP12,214,000 (2016: inflow of GBP13,959,000).
Exceptional finance income
During the year, the company transferred two of its
interest-rate swaps to other banks. Transferring the swaps has not
changed, in any way, the terms, conditions or future cash flows of
the swaps. The bank which originally issued the swaps paid the
company GBP402,000 compensation for agreeing to the transfer.
5. Employee benefits expenses
53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Wages and salaries 475,420 454,955
Social Security costs 31,211 27,766
Other pension costs 3,696 3,718
Share-based payments 10,711 9,556
521,038 495,995
Directors' emoluments 2017 2016
GBP000 GBP000
Aggregate emoluments 2,128 1,651
Aggregate amount receivable under
long-term incentive schemes 1,387 393
Company contributions to money
purchase pension scheme 155 80
3,670 2,124
The totals below relate to the monthly average number of
employees during the year, not the total number of employees at the
end of the year (including directors on a service contract).
2017 2016
Number Number
Full-time equivalents
Managerial/administration 3,880 4,274
Hourly paid staff 18,900 18,774
22,780 23,048
2017 2016
Number Number
Total employees
Managerial/administration 4,309 4,719
Hourly paid staff 32,241 31,959
36,550 36,678
5. Employee benefits expenses (continued)
The shares awarded as part of the above schemes are based on the
cash value of the bonuses at the date of the awards. These awards
vest over three years - with their cost spread equally over their
three-year life. The share-based payment charge above represents
the annual cost of bonuses awarded over the past three years. All
awards are settled in equity.
The company operates two share-based compensation plans. In both
schemes, the fair values of the shares granted are determined by
reference to the share price at the date of the award. The shares
vest at a GBPNil exercise price - and there are no market-based
conditions to the shares which affect their ability to vest.
Share-based payment 53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
Shares awarded during the year
(shares) 1,550,377 2,099,842
Average price of shares awarded
(pence) 935.91 708.40
Market value of shares vested
during the year (GBP000) 9,696 10,731
Total liability of the share based
payments schemes (GBP000) 14,540 12,582
6. Finance income and costs
53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Finance costs
Interest payable on bank loans
and overdrafts 17,273 18,893
Amortisation of bank loan issue
costs 2,817 3,595
Interest payable on swaps 8,450 12,039
Interest payable on other loans 17 41
Total finance costs 28,557 34,568
Bank interest receivable (72) (116)
Total finance income (72) (116)
Net finance costs before exceptionals 28,485 34,452
Exceptional bank interest receivable (402) -
Net finance costs after exceptionals 28,083 34,452
The net finance costs during the year decreased from GBP34.5m to
GBP28.1m. The finance costs in the income statement were covered
4.6 times (2016: 3.3 times) by earnings before interest and tax,
before exceptional items.
7. Income tax expense
Tax on profit on ordinary activities
The standard rate of corporation tax in the UK is 19.67%. The
company's profits for the accounting period are taxed at an
effective rate of 19.67% (2016: 20%).
53 weeks 53 weeks 53 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended ended
30 July 30 July 30 July 24 July 24 July 24 July
2017 2017 2017 2016 2016 2016
Before Exceptional After Before Exceptional After
exceptional items exceptional exceptional items exceptional
items (note items items (note items
4) 4)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Taken through income
statement
Current income tax:
Current income tax
charge 24,837 161 24,998 19,382 (75) 19,307
Previous period adjustment (246) - (246) (1,035) - (1,035)
Total current income
tax 24,591 161 24,752 18,347 (75) 18,272
Deferred tax:
Temporary differences 1,103 (1,547) (444) 4,205 (408) 3,797
Previous period adjustment 152 - 152 1,137 - 1,137
Impact of change
in UK tax rate - (4,155) (4,155) - (8,363) (8,363)
Total deferred tax 1,255 (5,702) (4,447) 5,342 (8,771) (3,429)
Tax charge/(credit) 25,846 (5,541) 20,305 23,689 (8,846) 14,843
53 weeks 53 weeks 53 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended ended
30 July 30 July 30 July 24 July 24 July 24 July
2017 2017 2017 2016 2016 2016
Before Exceptional After Before Exceptional After
exceptional items exceptional exceptional items exceptional
items (note items items (note items
4) 4)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Taken through equity
Tax on share-based
payment
Current tax (159) - (159) (159) - (159)
Deferred tax (263) - (263) 99 - 99
Tax credit (422) - (422) (60) - (60)
53 weeks 53 weeks 53 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended ended
30 July 30 July 30 July 24 July 24 July 24 July
2017 2017 2017 2016 2016 2016
Before Exceptional After Before Exceptional After
exceptional items exceptional exceptional items exceptional
items (note items items (note items
4) 4)
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Taken through comprehensive
income
Deferred tax charge
on swaps 4,835 - 4,835 (4,701) - (4,701)
Impact of change
in UK tax rate (21) - (21) 1,269 - 1,269
Tax charge/(credit) 4,814 - 4,814 (3,432) - (3,432)
7. Income tax expense (continued)
(b) Reconciliation of the total tax charge
The tax expense after exceptional items in the income statement
for the year is higher (2016: higher) than the standard rate of
corporation tax in the UK of 19.67% (2016: 20%), owing largely to
less expenditure qualifying for capital allowances. On 6 September
2016, the UK corporate tax rate of 17% for 1 April 2020 onwards was
substantively enacted. As a result, the deferred tax liability
(which predominantly unwinds in periods on or after 1 April 2020)
has been remeasured from 18% to 17%. This has resulted in a one-off
credit of GBP4.2m. The differences are reconciled below:
53 weeks 53 weeks 52 weeks 52 weeks
ended ended ended ended
30 July 30 July 24 July 24 July
2017 2017 2016 2016
Before After Before After
exceptional exceptional exceptional exceptional
items items items items
GBP000 GBP000 GBP000 GBP000
Profit before income
tax 102,830 76,364 80,610 66,049
Profit multiplied by the
UK standard rate of 20,227 15,021 16,122 13,210
corporation tax of 19.67%
(2016: 20%)
Abortive acquisition costs
and disposals 228 228 123 123
Other disallowables 1,004 2,520 215 1,197
Other allowable
deductions (83) (83) (112) (112)
Capital gains -
effects of reliefs 252 102
Non-qualifying depreciation 4,302 6,737 6,081 7,528
Deduction for shares
and SIPs (156) (137) 470 470
Remeasurement of other
balance sheet items (188) (188) - -
Unrecognised losses in
overseas companies 354 354 688 688
Adjustment in respect
of change in tax rate
- current year - (4,155) - (8,363)
Previous year adjustment
- current tax (246) (246) (1,035) (1,035)
Previous year adjustment
- deferred tax 152 152 1,137 1,137
Total tax expense reported
in the income statement 25,846 20,305 23,689 14,843
(c) Deferred tax
The deferred tax in the balance sheet is as follows:
The Finance Act 2015 included legislation to reduce the main
rate of corporation tax to 19% for the financial years beginning 1
April 2017, 1 April 2018 and 1 April 2019. The Finance Act 2016
reduced the rate further to 17% for the financial year beginning 1
April 2020.
These changes have been substantively enacted at the balance
sheet date and are consequently included in these financial
statements. The effect of these changes is to reduce the net
deferred tax liability by GBP4.2m.
Deferred tax Accelerated Other Total
liabilities
tax temporary
depreciation differences
GBP000 GBP000 GBP000
At 24 July
2016 73,957 3,281 77,238
Previous year movement posted
to the income statement 515 (253) 262
Movement during year posted
to the income statement (48) 858 810
Impact of tax rate change posted
to the income statement (4,131) (285) (4,416)
At 30 July
2017 70,293 3,601 73,894
Deferred tax Share Capital Interest-rate Total
assets
based losses swaps
payments carried
forward
GBP000 GBP000 GBP000 GBP000
At 24 July
2016 1,137 1,660 11,426 14,223
Previous year movement
posted to the income
statement - 110 - 110
Movement during year
posted to the income
statement 57 1,197 - 1,254
Impact of tax rate change
posted to income statement - (261) - (261)
Movement during year
posted to comprehensive
income - - (4,835) (4,835)
Impact of tax rate change
posted to comprehensive
income - - 21 21
Movement during year
posted to equity 263 - - 263
At 30 July
2017 1,457 2,706 6,612 10,775
7. Income tax expense (continued)
Deferred tax assets and liabilities have been offset as
follows:
2017 2016
GBP000 GBP000
Deferred tax
liabilities 73,894 77,238
Offset against deferred
tax assets (4,163) (2,797)
Deferred tax
liabilities 69,731 74,441
Deferred tax
assets 10,775 14,223
Offset against deferred
tax liabilities (4,163) (2,797)
Deferred tax
asset 6,612 11,426
As at 30 July 2017, there are potential deferred tax assets of
GBP0.9m (2016: GBP0.7m); these are not being recognised, owing to
insufficient certainty of recovery. This comprises a deferred tax
asset of GBP1.0m, relating to losses (2016: GBP0.8m), less a
deferred tax liability of GBP0.1m, relating to accelerated capital
allowances (2016: GBP0.1m).
A deferred tax asset has been recognised in respect of the
capital losses, as the company considers it more likely than not
that profits will arise in the future which are capable of being
relieved by the capital losses
8. Earnings and free cash flow per share
Earnings per share are based on the weighted average number of
shares in issue of 111,293,971 (2016: 117,898,893), including those
held in trust in respect of employee share schemes. Earnings per
share, calculated on this basis, are usually referred to as
'diluted', since all of the shares in issue are included.
Accounting standards refer to 'basic earnings' per share - these
exclude those shares held in trust in respect of employee share
schemes.
Weighted average number 53 weeks 52 weeks
of shares
ended ended
30 July 24 July
2017 2016
Shares in issue
(used for diluted
EPS) 111,293,971 117,898,893
Shares held in
trust (2,500,717) (2,854,697)
Shares in issue less
shares held in trust 108,793,254 115,044,196
The weighted average number of shares held in trust for employee
share schemes has been adjusted to exclude those shares which have
vested yet remain in trust.
Earnings per share
53 weeks ended Profit Basic Diluted
30 July 2017 EPS EPS
pence pence
per per
ordinary ordinary
GBP000 share share
Earnings (profit
after tax) 56,059 51.5 50.4
Exclude effect of exceptional
items after tax 20,925 19.3 18.8
Earnings before
exceptional items 76,984 70.8 69.2
Exclude effect of property
gains/(losses) (2,807) (2.6) (2.6)
Underlying earnings
before exceptional items 74,177 68.2 66.6
52 weeks ended Profit Basic Diluted
24 July 2016 EPS EPS
pence pence
per per
ordinary ordinary
GBP000 share share
Earnings (profit
after tax) 51,206 44.5 43.4
Exclude effect of exceptional
items after tax 5,715 5.0 4.9
Earnings before
exceptional items 56,921 49.5 48.3
Exclude effect of property
gains/(losses) (5,335) (4.7) (4.5)
Underlying earnings
before exceptional items 51,586 44.8 43.8
The diluted earnings per share before exceptional items have
increased by 43.3% (2016: 2.8%).
8. Earnings and free cash flow per share (continued)
Owners' earnings per share
Owners' earnings measure the earning attributable to
shareholders from current activities adjusted for significant
non-cash items and one-off items. Owners' earnings are calculated
as profit before tax, exceptional items, depreciation and
amortisation and property gain and losses less reinvestment in
current properties and cash tax. Cash tax is defined as the current
year current tax charge.
53 weeks ended 30 July 2017 Owner's Basic Diluted
EPS EPS
Earnings pence pence
per per
ordinary ordinary
GBP000 share share
Profit before tax and exceptional
items (income statement) 102,830 94.5 92.4
Exclude depreciation and
amortisation (note 2) 73,869 67.9 66.4
Less reinvestment in current
properties (see below) (65,912) (60.6) (59.2)
Exclude property gains and
losses (note 3) (2,807) (2.6) (2.6)
Less cash tax (note 7) (24,837) (22.8) (22.3)
Owners' earnings 83,143 76.4 74.7
52 weeks ended 24 July 2016 Owner's Basic Diluted
EPS EPS
Earnings pence pence
per per
ordinary ordinary
GBP000 share share
Profit before tax and exceptional
items (income statement) 80,610 70.1 68.4
Exclude depreciation and
amortisation (note 2) 72,212 62.8 61.2
Less reinvestment in current
properties (see below) (33,511) (29.1) (28.4)
Exclude property gains and
losses (note 3) (5,335) (4.8) (4.6)
Less cash tax (note 7) (19,382) (16.8) (16.4)
Owners' earnings 94,594 82.2 80.2
The diluted owners' earnings per share decreased by 6.9% (2016:
increased by 20.9%).
Analysis of additions by 53 weeks 52 weeks
type
ended ended
30 July 24 July
2017 2016
Reinvestment in existing
pubs 65,912 33,511
Investment in new pubs and
pub extensions 46,894 60,611
Freehold reversions 95,326 36,083
208,132 130,205
Analysis of additions by 53 weeks 52 weeks
category
ended ended
30 July 24 July
2017 2016
Property, plant and equipment
(note 12) 198,556 125,872
Intangible assets (note
13) 9,576 3,243
Other non-current assets
(note 15) -- 1,090
208,132 130,205
8. Earnings and free cash flow per share (continued)
Operating profit per share
Operating Basic Diluted
EPS EPS
profit pence pence
per per
ordinary ordinary
GBP000 share share
53 weeks ended
30 July 2017 128,508 118.1 115.5
52 weeks ended
24 July 2016 109,727 95.4 93.1
Free cash flow per share
The calculation of free cash flow per share is based on the net
cash generated by business activities and available for investment
in new pub developments and extensions to current pubs, after
funding interest, corporation tax, all other reinvestment in pubs
open at the start of the period and the purchase of own shares
under the employee Share Incentive Plan ('free cash flow'). It is
calculated before taking account of proceeds from property
disposals, inflows and outflows of financing from outside sources
and dividend payments and is based on the weighted average number
of shares in issue, including those held in trust in respect of the
employee share schemes.
Free Basic Diluted
cash free free
flow cash cash
flow flow
pence pence
per per
ordinary ordinary
GBP000 share share
53 weeks ended
30 July 2017 107,936 99.2 97.0
52 weeks ended
24 July 2016 90,485 78.7 76.7
9. Cash generated from operations
53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Profit for the
year 56,059 51,206
Adjusted for:
Tax (note 7) 20,305 14,843
Share-based charges
(note 2) 10,711 9,556
Loss on disposal of property,
plant and equipment (note
3) 14,484 2,462
Net impairment
charge (note 3) 7,787 5,539
Interest receivable
(note 6) (72) (116)
Amortisation of bank
loan issue costs (note
6) 2,817 3,595
Interest payable
(note 6) 25,740 30,973
Depreciation of property,
plant and equipment (note
12) 66,483 65,297
Amortisation of
intangible assets
(note 13) 6,931 5,949
Depreciation on investment
properties (note 14) 55 62
Amortisation of other
non-current assets (note
15) 400 904
Net onerous lease
provision 720 545
Aborted properties
costs 1,157 614
Net exceptional finance
income (note 4) (402) -
213,175 191,429
Change in inventories (2,407) 283
Change in receivables 4,980 954
Change in payables 8,655 (10,830)
Cash flow from
operating activities 224,403 181,836
10. Analysis of change in net debt
24 July Cash Non-cash 30 July
2016 flows movement 2017
GBP000 GBP000 GBP000 GBP000
Borrowings
Cash in hand 46,135 4,509 - 50,644
Bank loans - due
before one year - (17,347) - (17,347)
Other loans (112) 110 (112) (114)
Current net borrowings 46,023 (12,728) (112) 33,183
Bank loans - due
after one year (696,581) (29,999) (2,817) (729,397)
Other loans (202) - 112 (90)
Non-current net
borrowings (696,783) (29,999) (2,705) (729,487)
Net debt (650,760) (42,727) (2,817) (696,304)
Derivatives
Interest-rate swaps asset
- due after one year - - 11,380 11,380
Interest-rate swaps liability
- due before one year (79) - 79 -
Interest-rate swaps liability
- due after one year (63,398) - 13,122 (50,276)
Total derivatives (63,477) - 24,581 (38,896)
Net debt after
derivatives (714,237) (42,727) 21,764 (735,200)
Non-cash movements
The non-cash movement in bank loans due after one year relates
to the amortisation of bank loan issue costs.
The movement in interest-rate swaps of GBP24.6m relates to the
change in the 'mark to market' valuations for the year.
11. Dividends paid and proposed
53 weeks 52 weeks
ended ended
30 July 24 July
2017 2016
GBP000 GBP000
Declared and paid
during the year:
Dividends on ordinary
shares:
- final for 2014/15:
8.0p (2013/14: 8.0p) - 9,543
- interim for 2015/16:
4.0p (2014/15: 4.0p) - 4,647
- final for 2015/16:
8.0p (2014/15: 8.0p) 8,933 -
- interim for 2016/17:
4.0p (2015/16: 4.0p) 4,419 -
13,352 14,190
Proposed for approval by shareholders
at the AGM:
- final for 2016/17:
8.0p (2015/16: 8.0p) 8,488 9,084
Dividend cover
(times) 4.2 3.6
As detailed in the interim accounts, the board declared and paid
an interim dividend of 4.0p for the financial year ended 30 July
2017. Dividend cover is calculated as profit after tax and
exceptional items over dividend paid.
12. Property, plant and equipment
Freehold Short- Equipment, Assets Total
and
long-leasehold leasehold fixtures under
property property and construction
fittings
GBP000 GBP000 GBP000 GBP000 GBP000
Cost:
At 26 July 2015 876,021 425,350 520,781 62,779 1,884,931
Additions 53,896 9,613 32,030 30,333 125,872
Transfers 27,565 1,810 5,840 (35,215) -
Exchange differences 1,065 343 549 2,648 4,605
Transfer to held
for sale (3,869) (1,889) (2,149) - (7,907)
Disposals (32,488) (8,014) (15,926) - (56,428)
Reclassification 13,552 (13,552) - - -
At 24 July 2016 935,742 413,661 541,125 60,545 1,951,073
Additions 112,737 5,766 45,473 34,580 198,556
Transfers 20,928 3,270 3,834 (28,032) -
Exchange differences 869 162 317 741 2,089
Transfer to held
for sale (3,489) (3,493) (2,682) - (9,664)
Disposals (32,162) (25,446) (26,266) - (83,874)
Reclassification 32,311 (32,311) - - -
At 30 July 2017 1,066,936 361,609 561,801 67,834 2,058,180
Accumulated depreciation
and impairment:
At 26 July 2015 (174,449) (204,712) (352,014) - (731,175)
Provided during
the year (14,742) (14,674) (35,881) - (65,297)
Exchange differences (18) (11) (97) - (126)
Impairment loss (869) (2,986) (954) - (4,809)
Transfer to held
for sale 3,228 1,846 1,883 - 6,957
Disposals 12,484 6,719 12,686 - 31,889
Reclassification (6,674) 6,674 - - -
At 24 July 2016 (181,040) (207,144) (374,377) - (762,561)
Provided during
the year (15,802) (13,023) (37,658) - (66,483)
Exchange differences (36) (23) (186) - (245)
Impairment loss (2,862) (3,473) (1,272) - (7,607)
Transfer to held
for sale 1,926 3,552 2,657 - 8,135
Disposals 12,621 20,137 20,456 - 53,214
Reclassification (20,181) 20,181 - - -
At 30 July 2017 (205,374) (179,793) (390,380) - (775,547)
Net book amount
at 30 July 2017 861,562 181,816 171,421 67,834 1,282,633
Net book amount
at 24 July 2016 754,702 206,517 166,748 60,545 1,188,512
Net book amount
at 26 July 2015 701,572 220,638 168,767 62,779 1,153,756
Impairment of property, plant and equipment
In assessing whether a pub has been impaired, the book value of
the pub is compared with its anticipated future cash flows and fair
value. Assumptions are used about sales, costs and profit, using a
pre-tax discount rate for future years of 8% (2016: 8%).
If the value, based on the higher of future anticipated cash
flows and fair value, is lower than the book value, the difference
is written off as property impairment.
As a result of this exercise, a net impairment loss of
GBP7,607,000 (2016: GBP4,809,000) was charged to property
losses
in the income statement, as described in note 4.
Management believes that a reasonable change in any of the key
assumptions, for example the discount rate applied to each pub,
could cause the carrying value of the pub to exceed its recoverable
amount, but that the change would be immaterial.
13. Intangible assets
GBP000
Cost:
At 26 July 2015 53,353
Additions 3,243
Disposals (5)
At 24 July 2016 56,591
Additions 9,576
Disposals (493)
At 30 July 2017 65,674
Accumulated amortisation:
At 26 July 2015 (23,356)
Provided during
the year (5,949)
Exchange differences (1)
Impairment loss (239)
Disposals 5
At 24 July 2016 (29,540)
Provided during
the year (6,931)
Exchange differences 1
Disposals 487
At 30 July 2017 (35,983)
Net book amount
at 30 July 2017 29,691
Net book amount
at 24 July 2016 27,051
Net book amount
at 26 July 2015 29,997
Amortisation of GBP6,931,000 (2016: GBP5,949,000) is included in
operating costs in the income statement.
The majority of intangible assets relates to computer software
and software development. Examples include the development costs of
our SAP accounting system and our 'Wisdom' property maintenance
system.
Included in the intangible assets is GBP1,474,000 of software in
the course of development (2016: GBP1,118,000).
14. Investment property
The company owns two (2016: two) freehold properties with
existing tenants and these assets have been classified
as investment properties.
GBP000
Cost:
At 26 July 2015 8,754
Disposals (1,003)
At 24 July 2016 7,751
Disposals -
At 30 July 2017 7,751
Accumulated depreciation:
At 26 July 2015 (103)
Provided during
the year (62)
Disposals 19
At 24 July 2016 (146)
Provided during
the year (55)
At 30 July 2017 (201)
Net book amount
at 30 July 2017 7,550
Net book amount
at 24 July 2016 7,605
Net book amount
at 26 July 2015 8,651
Rental income received in the period from investment properties
was GBP356,000 (2016: GBP495,000).
Operating costs, excluding depreciation, incurred in relation to
these properties amounted to GBP4,000 (2016: GBP56,000).
15. Other non-current assets
Lease
premiums
GBP000
Cost:
At 26 July 2015 15,205
Additions 1,090
Disposals (65)
At 24 July 2016 16,230
Transfers to held
for sale (257)
Disposals (3,246)
At 30 July 2017 12,727
Accumulated depreciation:
At 26 July 2015 (5,177)
Provided during
the year (904)
Exchange differences 2
Impairment loss (491)
Disposals 65
At 24 July 2016 (6,505)
Provided during
the year (400)
Impairment loss (180)
Transfers to held
for sale 262
Disposals 2,368
At 30 July 2017 (4,455)
Net book amount
at 30 July 2017 8,272
Net book amount
at 24 July 2016 9,725
Net book amount
at 26 July 2015 10,028
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EANNLFLNXEFF
(END) Dow Jones Newswires
September 15, 2017 02:00 ET (06:00 GMT)
Wetherspoon ( J.d.) (LSE:JDW)
Historical Stock Chart
From Apr 2024 to May 2024
Wetherspoon ( J.d.) (LSE:JDW)
Historical Stock Chart
From May 2023 to May 2024