JD Wetherspoon Plc (LSE:JDW) warned it will make a loss in the first half as sales were impacted by the UK government’s ‘Plan B’ Coronavirus (COVID-19 restrictions.
In the 12 weeks to 16 January 2022, like-for-like sales slumped 15.6% and total sales by 16.6% compared with the same period last year, the pubs group said in a trading update.
In the 25 weeks to 16 January, like-for-like sales decreased 11.7% and total sales by 13.3%.
"As mentioned in our update on 13 December 2021, the uncertainty created by the introduction of plan B COVID-19 measures makes predictions for sales and profits hazardous,” said Wetherspoon chairman Wetherspoon Tim Martin.
"The company will be loss-making in the first half of the financial year, but hopes that, with the ending of restrictions, improved customer confidence and better weather, it will have a much stronger performance in the second half."
Commenting on the revelations that a number of parties were held at 10 Downing Street during lockdown in 2020, Wetherspoon said these parties highlighted the consequences of lockdowns and pub closures and that it would have been better if the No 10 partygoers had been able to visit pubs instead.
For example, London’s highly trained and experienced staff “would have easily dealt with the ‘high jinks’ alleged to have occurred at No 10”, the pubs group said.
The company also criticised the recent move by fund manager BlackRock (NYSE:BLK), which holds a 3.51% interest in Wetherspoon, to vote against reappointing Wetherspoon's non-executives at the AGM in November.
It said it complied with the ‘comply or explain’ provisions of the corporate governance code and believes BlackRock (NYSE:BLK) has not taken account of Wetherspoon's explanations, as it is bound to do by the code.