Wetherspoon (JD) PLC Trading Update Announcement (7532F)
November 09 2022 - 1:00AM
UK Regulatory
TIDMJDW
RNS Number : 7532F
Wetherspoon (JD) PLC
09 November 2022
09 November 2022
J D WETHERSPOON PLC
Trading Update Announcement
J D Wetherspoon plc (the "company") today publishes its
scheduled trading update announcement for the 14 weeks to 6
November 2022, comprising Q1 and a further week.
Current trading
Like-for-like sales in the first 14 weeks of the financial year
were 9.6% higher than the same period last year and 0.4% higher
than the 14 weeks ending 3 November 2019.
Costs, especially in respect of labour, food and repairs, were
substantially higher.
Trading has been broadly in line with expectations, although
October has been a slightly slower month.
For the first 9 weeks of the financial year, sales were 1.5%
above the same period in calendar-year 2019. For the last 5 weeks,
sales were 1.1% lower than the same period in 2019.
In comparison with 2021, sales were +10.1% for the first 9 weeks
and were +8.9% for the last 5 weeks.
Financing
The company has terminated most of its interest rate swaps,
receiving GBP169.4 million, after costs.
The mark-to-market value of the interest rate swaps increased by
approximately GBP120 million from the end of the last financial
year (31 July 2022) to mid-October. The company decided to realise
the value of the swaps, as part of its plans to reduce debt over
the next few financial years.
As at 6 November 2022, the company's net debt was GBP745 million
(GBP892 million at 31 July 2022).
The company has since fixed interest rates in respect of GBP400
million of borrowings for three years to 31 October 2025 at 4.67%,
excluding the banks' margin.
Interest costs for FY23 are expected to be approximately GBP10
million higher, following the transactions noted above.
Property
The company has opened one pub during the period and sold five
pubs. The sale of the five pubs gave rise to a cash inflow of
GBP1.9 million. In addition, the lease of a pub at Doncaster
airport came to an end and reverted to the landlord. The company
currently has a trading estate of 847 pubs.
As previously indicated, the company has recently put 32 pubs on
the market and intends to add a further 7 pubs to the disposal list
this week. Most of the pubs are in close proximity to existing
Wetherspoon pubs.
Outlook
Wetherspoon chairman Tim Martin said:
"Sales have improved since the ending of restrictions in the
early part of this calendar year and are considerably above the
same period in the last financial year.
"The company reported a return to positive cash flow in FY22 and
anticipates a positive cash flow in the current year.
"In my comments on the full year results released on 7 October
2022, I set out various threats to the hospitality industry and
these continue to apply. Those caveats aside, in the absence of
further lockdowns or restrictions, the company remains cautiously
optimistic about future prospects."
Ends.
Enquiries:
John Hutson Chief Executive Officer 01923 477777
Ben Whitley Finance Director 01923 477777
Eddie Gershon Company spokesman 07956 392234
Notes to editors
1. J D Wetherspoon owns and operates pubs throughout the UK and
Ireland. 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: www.jdwetherspoon.com
3. This announcement has been prepared solely to provide
additional information to the shareholders of J D Wetherspoon, to
meet the requirements of the FCA's Disclosure and Transparency
Rules. It should not be relied on by any other party, for any other
purposes. Forward-looking statements have been made by the
directors in good faith, using information available up until the
date on which they approved this statement. Forward-looking
statements should be regarded with caution, because of the inherent
uncertainties in economic trends and business risks.
4. This announcement contains inside information on J D Wetherspoon plc.
5. The current financial year comprises 52 trading weeks to 30 July 2023.
6. The next trading update is expected to be issued on 25 January 2023.
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