JD Wetherspoon PLC’s (LON:JDW) outspoken boss has launched another tirade against the UK’s leading industry body over Brexit, as the pubs group forecast a “slightly improved” annual trading outcome boosting its shares higher.
Wetherspoon’s chairman, Tim Martin, used the group’s third-quarter trading update to lambast the “current desperation of the CBI and others for a 'deal'” over Brexit.
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He said this is “only encouraging the absurd posturing of the unelected 'President' Juncker and his acolytes, and creates an absurdly pessimistic picture of the UK's position if a sensible deal is not forthcoming.”
Martin added: "It is hard to believe that such foolhardy advice could emanate from a business organisation.”
Better-than-expected year-to-date sales
Switching to Wetherspoon’s performance, the group’s chairman said that “as a result of better-than-expected year-to-date sales, we currently anticipate a slightly improved trading outcome for the current financial year, compared with our expectations at the last update.”
Although he added; “"As previously reported, the company expects significantly higher costs in the second half of the financial year, mainly for business rates, utility taxes, excise duty and labour. In view of these costs and stronger sales comparisons, the company remains cautious about the second half of the year.”
Martin said that as a result of these higher costs “the company anticipates it will require like-for-like sales of about 3 to 4% in our next financial year to maintain profits at current levels."
Third quarter like-for-like sales up 4%
Wetherspoon’s - the owner and operator of more than 900 pubs in Britain and Ireland - said its third-quarter like-for-like sales for the 13 weeks to April 23 increased by 4%, higher than the 3.8% increase seen a year earlier.
The group added that its year-to-date like-for-like sales were up by 3.5% and total sales have increased by 1.4%.
It also said its operating margin was 7.3%, compared with 6.4% in the same 13 weeks last year, with the year-to-date operating margin at 7.8% compared with 6.3% last year.
In reaction to the positive performance, Wetherspoon shares on the FTSE 250 index gained alomost 3.4%, or 34p at 1,044p.