FTSE 250-listed cheap-and-cheerful pub chain JD Wetherspoon PLC (LSE:JDW)’s full-year results on Friday come amid a period of renewed optimism in the hospitality space.
In the third quarter, Wethersoons boss Tim Martin said profits are expected to come in towards the top of market expectations thanks to a strong rebound out of the pandemic-era dark period.
Market analysts expect the company to report a profit before tax of £50.62 million for the year, which would mark a sizable increase on last year’s £42.6 million.
Martin regularly uses the occasions to compel the government to pursue a fairer alcohol tax policy.
In a July update, he accused the outgoing Tory government of failing “to implement tax equality between pubs and supermarkets, leading to pub closures and underinvestment”, while calling for fairer treatment from Labour chancellor Rachel Reeves.
Martin often points to Wetherpoon’s sizeable tax bills and razor thin margins (typically in the low to mid single digits) to support his campaign for tax equality.
Yearly sales per pub were 21% above pre-pandemic levels per the July update, but higher staffing and utility costs have kept those margins under considerable pressure.
Yet with the group’s recent strategy being to dispose of underperforming sites in favour of mega pubs like the new Lion & The Unicorn at London Waterloo station, there could potentially be signs of improvement when ‘Spoons reports on Friday, 4 October.